FINANCIAL REPORT AND ACCOUNTS 2011 - States Assembly

NOTES TO THE ACCOUNTSNOTE 1: STATEMENT OF ACCOUNTING POLICIESJ.8 For the States of Jersey, these include:• Loans issued by Housing Funds• Loans issued through the Agricultural Loans Fund• Miscellaneous Loans made through the Consolidated Fund• Debtors arising within the normal course of operationsStrategic InvestmentsJ.9 Strategic Investments are companies outside the group boundary in which the States ofJersey has a controlling interest.J.10 Strategic Investments are accounted for as ‘Available-for-Sale’ financial assets, although itshould be noted that this does not indicate an intention to dispose of the States’ interest (seePolicy J.12 below).J.11 Specifically, the States of Jersey recognised its investments in the following companies asStrategic Investments:• Jersey Telecom Group Limited• Jersey Post International Limited• Jersey Electricity plc• Jersey New Waterworks Company LimitedOther Available for Sale InvestmentsJ.12 Available-For-Sale investments are non-derivative financial assets that are either designatedin this category or not classified in any other categories and are intended to be held for anindefinite period of time (but may in some cases be sold in response to policy decisions).J.13 For the States of Jersey, other Available for Sale Investments include:• Housing Property Bonds issued under either P7/2006 or the Homebuyer scheme.Investments held at Fair Value through the OCSJ.14 This category has two sub-categories:• Financial assets Held-For-Trading; and• Those designated at fair value through OCS at inception.J.15 A financial asset or liability is classified as Held-For-Trading if it is acquired or incurredprincipally for the purpose of selling or repurchasing in the near term or if it is part of aportfolio of identified financial instruments that are managed together and for which thereis evidence of a recent actual pattern of short-term profit-taking. Derivatives are alsocategorised as Held-For-Trading unless they are designated as hedging instruments.76