the board of a company must ensure that there are kept at all times accounting records...

the board of a company must ensure that there are kept at all times accounting records that … correctly record the transactions of the company” – section 194 of the Companies Act 1993.

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Accounting records to be kept - Section 194 Companies Act 1993

The board of a company must cause accounting records to be kept that -

Correctly record and explain the transactions of the company; and
Will at any time enable the financial position of the company to be determined with reasonable accuracy; and
Will enable the directors to ensure that the financial statements of the company comply with section 10 of the Financial Reporting Act 1993 and any group financial statements comply with section 13 of that Act; and
Will enable the financial statements of the company to be readily and properly audited.

The section goes on to describe the type of information that the accounting records must contain and this includes details of money received and spent each day and the matters to which it relates, a record of the assets and liabilities of the company and, if the company's business involves dealing in goods, a record of the stock bought and sold.

The records must be kept in English or in a form or manner that is easily accessible and convertible into written form in English.

If the board of a company fails to comply with these requirements every director commits an offence and is liable on conviction to a fine of up to $10,000.

ekkarill92 answered 1 year ago

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