44.This section places a duty on the Treasury to prepare consolidated accounts for the public sector in order to meet the commitment given in the Code for Fiscal Stability.
45.Subsection (1) requires the Treasury to prepare consolidated accounts for the public sector. The bodies covered by the accounts are to be determined by the Treasury (see the discussion of section 10 below). This will enable the Treasury to expand the coverage of the accounts as required: it is envisioned that consolidated accounts will initially be prepared for the central government sector and will, over time, be extended to include all public sector bodies.
46.Subsection (2) allows the extension of the scope of Whole of Government Accounts (WGA) to encompass accounts such as the National Insurance Fund and the Social Fund, which, although administered by departments, are not included within the departments' own accounts.
47.Subsections (3) to (5) set out the framework within which WGA must be prepared. Subsection (3) gives the Treasury the power to determine the form of the accounts, but this power must be exercised in the context of the requirements of subsections (4) and (5). Subsection (4) requires the Treasury in determining the form and content of WGA to aim to ensure that they present a true and fair view. They must also conform to generally accepted accounting practice modified only as necessary for the needs of the public sector.
48.Subsection (5) elaborates on the general requirements in subsection (4) by requiring the Treasury to have regard to guidance issued by the Accounting Standards Board or any successor body responsible for setting the accounting standards for accounts prepared under the Companies Act 1985. It also requires the accounts to include three main statements:
	a statement of financial performance;
	a statement of financial position; and
	a cash flow statement.
49.The description of the statements is precisely that adopted by the Accounting Standards Board in its Statement of Principles for Financial Reporting (published in December 1999). This approach is intended to prevent the legislation becoming outdated quickly.
Commentary on Sections Section 9: Whole of Government Accounts – preparation