Banker Posted April 8, 2023 Share Posted April 8, 2023 7 minutes ago, cissolt said: Not according to their own accounts, reserves comprise of all current and prior retained profits and losses. £18 million income surplus for 21/22 But they’re not cash reserves, they’re the net assets ie all assets less liabilities. The accounts are also 12 months out of date & suplus previously is a loss of £45m forecast latest financial year. As I said previously there’s no pot of cash to subsidize bills Quote Link to comment Share on other sites More sharing options...
Gladys Posted April 8, 2023 Share Posted April 8, 2023 14 minutes ago, Banker said: But they’re not cash reserves, they’re the net assets ie all assets less liabilities. The accounts are also 12 months out of date & suplus previously is a loss of £45m forecast latest financial year. As I said previously there’s no pot of cash to subsidize bills Would it be right to say reserves are the equivalent of shareholders' funds in company accounts? Quote Link to comment Share on other sites More sharing options...
Happier diner Posted April 8, 2023 Share Posted April 8, 2023 4 minutes ago, Gladys said: Would it be right to say reserves are the equivalent of shareholders' funds in company accounts? I don't think so. It's ready cash afaik. Savings. I'm not an expert though. Quote Link to comment Share on other sites More sharing options...
Gladys Posted April 8, 2023 Share Posted April 8, 2023 12 minutes ago, Happier diner said: I don't think so. It's ready cash afaik. Savings. I'm not an expert though. It isn't cash, that is shown as £12.4m. As Banker says its the surplus assets. In company accounts, it would be shown as shareholder funds, ie the net value of the company owned by the shareholders. Quote Link to comment Share on other sites More sharing options...
Banker Posted April 8, 2023 Share Posted April 8, 2023 25 minutes ago, Gladys said: Would it be right to say reserves are the equivalent of shareholders' funds in company accounts? Yes anything left over would belong to shareholders ie Government in this case . 1 Quote Link to comment Share on other sites More sharing options...
Roxanne Posted April 8, 2023 Share Posted April 8, 2023 6 minutes ago, Banker said: Yes anything left over would belong to shareholders ie Government in this case . Help me out here. Aren't government the ones in charge who are making us pay for their debt brought about by their uselessness? If they can't use reserves, why can't they use what's left over? 3 Quote Link to comment Share on other sites More sharing options...
Gladys Posted April 8, 2023 Share Posted April 8, 2023 15 minutes ago, Roxanne said: Help me out here. Aren't government the ones in charge who are making us pay for their debt brought about by their uselessness? If they can't use reserves, why can't they use what's left over? They will have to eat into the reserves to balance the reported loss for 2023 year end. They will not want to continue doing that. The reserves are what's left over, but only a small amount is cash, and they need cash, I suppose. Debtors looks high though, that can't all be Joe Public electricity and water customers. Is it Manx Gas, which was the source of some controversy, can't remember if that was before or after March 2022. Quote Link to comment Share on other sites More sharing options...
Banker Posted April 8, 2023 Share Posted April 8, 2023 26 minutes ago, Roxanne said: Help me out here. Aren't government the ones in charge who are making us pay for their debt brought about by their uselessness? If they can't use reserves, why can't they use what's left over? As I explained earlier the reserves are not in cash, they are just net assets which are not very liquid eg power plants. In the extreme event that MUA was wound up then there would be a massive deficit as who’s going to buy second hand gas powered power plants, gas pipelines etc! 1 2 Quote Link to comment Share on other sites More sharing options...
finlo Posted April 8, 2023 Share Posted April 8, 2023 8 minutes ago, Banker said: As I explained earlier the reserves are not in cash, they are just net assets which are not very liquid eg power plants. In the extreme event that MUA was wound up then there would be a massive deficit as who’s going to buy second hand gas powered power plants, gas pipelines etc! A bit like the government's mythical billions in reserves then! 1 Quote Link to comment Share on other sites More sharing options...
Banker Posted April 8, 2023 Share Posted April 8, 2023 27 minutes ago, finlo said: A bit like the government's mythical billions in reserves then! No those reserves are mainly in liquid assets managed by external managers & stood at £1.79bn at time of budget but c£350m being used over next few years to fund deficits including £127m this year. Alternative is big cuts to services or more taxes which is what Guernsey are trying to decide on at present. Quote Link to comment Share on other sites More sharing options...
Non-Believer Posted April 8, 2023 Share Posted April 8, 2023 (edited) Unless the Govt stops haemorrhaging money then those draws from reserves are going to continue. "£350M over the next few years" ends when and becomes un-necessary because "what" has been found to replace it? We are just winging it here in the hope and search for the next unknown golden goose, the fact that even Health has just been knocked back for extra because of its overspend is very telling. It certainly doesn't auger well for a new TT scoreboard, for instance. Edited April 8, 2023 by Non-Believer Typo Quote Link to comment Share on other sites More sharing options...
Blade Runner Posted April 8, 2023 Share Posted April 8, 2023 (edited) 2 hours ago, Gladys said: Would it be right to say reserves are the equivalent of shareholders' funds in company accounts? No, I think more like "Retained Profits " in a LTD Co So not real cash that is available, only figures on a set of accounts. A bit like the ex IOM CM whose name escapes me, a Chemist in Onchan who said the following at a house party to me and I quote exactly- "IOM Reserves are made up of things like the book value of the hospital and similar other built items" So not liquid funds, maybe that's why Alf borrowed money rather than draw down these "reserves" during the Pandemic?............. Edited April 8, 2023 by Blade Runner Quote Link to comment Share on other sites More sharing options...
Banker Posted April 8, 2023 Share Posted April 8, 2023 7 minutes ago, Non-Believer said: Unless the Govt stops haemorrhaging money then those draws from reserves are going to continue. "£350M over the next few years" ends when and becomes un-necessary because "what" has been found to replace it? We are just winging it here in the hope and search for the next unknown golden goose, the fact that even Health has just been knocked back for extra because of its overspend is very telling. It certainly doesn't auger well for a new TT scoreboard, for instance. Well unless we increase working population then increasing taxes & budget cuts maybe only alternative!! See Guernsey dilemma https://guernseypress.com/news/2023/03/30/all-committees-except-hsc-asked-to-make-budget-cuts/ 1 Quote Link to comment Share on other sites More sharing options...
Blade Runner Posted April 8, 2023 Share Posted April 8, 2023 (edited) double Edited April 8, 2023 by Blade Runner Quote Link to comment Share on other sites More sharing options...
Gladys Posted April 8, 2023 Share Posted April 8, 2023 15 minutes ago, Blade Runner said: No, I think more like "Retained Profits " in a LTD Co So not real cash that is available, only figures on a set of accounts. A bit like the ex IOM CM whose name escapes me, a Chemist in Onchan who said the following at a house party to me and I quote exactly- "IOM Reserves are made up of things like the book value of the hospital and similar other built items" So not liquid funds, maybe that's why Alf borrowed money rather than draw down these "reserves" during the Pandemic?............. It's a bit more than retained profits, its the balancing figure to net assets, so there is quite a bit of capital there too I would think. 1 Quote Link to comment Share on other sites More sharing options...
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