GAAP Order
GAAP Order
For any Jersey company that meets the definition of a Market Traded Company (MTC), which is any Jersey company that has securities admitted to trading on an EU or UK regulated market (such as the London Stock Exchange Main Market), but does not meet the definition of an Exempt Company, they are required to prepare the annual accounts “in accordance with Generally Accepted Accounting Principles (GAAP) prescribed for the purposes of this provision” as per Article 105(2)(a) of the Companies (Jersey) Law 1991.
Until now the list of prescribed GAAPs was contained in the Companies (GAAP) (Jersey) Order 2010 and includes International Financial Reporting Standards (IFRS) both issued by the International Accounting Standards Board (IASB issued IFRS) and as adopted by the European Union (EU adopted IFRS), amongst others.
Subsequent to Brexit, a third version of IFRS, known as International Accounting Standards as adopted by the United Kingdom (UK-IAS) has been developed for use in the UK.
On 31 March 2025, the Companies (GAAP) (Jersey) Amendment Order 2025 was signed, which add UK-IAS to the list of prescribed GAAPs, a copy can be found on the Jersey Legal Information Board [Companies (GAAP) (Jersey) Amendment Order 2025]. The amendment is effective for accounting periods commencing on or after 1 April 2025, meaning that a Jersey MTC with a 31 March balance date would be able to apply UK-IAS in its accounts for the year ended 31 March 2026.
While there is no need to change GAAP’s, this may be helpful for existing Jersey companies that prepare accounts under UK-IAS that list on the LSE, as there would be no need to transition GAAPs on becoming a MTC.
