Question

1. Discuss the following statement: (Omani Commercial Law binds the trader to keep the day-book and the general ledger book for ten years).

Answer 1

This stateent is correct,

As per the requirements of the Oman Commercial Law, all commercial entities must maintain proper accounting records for 10 years and in accordance with International Financial Reporting Standards. Furthermore, all Joint Stock Companies and Limited Liability Companies are required to have annual statutory audits.

Method of accounting and maintenance of records Financial Statements shall be prepared in accordance with International Financial Reporting Standards. All records and documents shall be maintained for a minimum period of ten years following the end of the accounting period to which the books and records relate. Accounts should be maintained in Omani Rials and advance permission shall be sought from the tax department if the accounts are maintained in any other currency. The tax authorities are authorized to conduct an examination of the records maintained by the entity at its premises after giving notice to the tax payer of such examination in advance.