Question

In: Accounting

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.

Solutions

Expert Solution

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 2 years ago
Next > < Previous

Related Solutions

13- Management are unsure of what health and safety records must be kept or how to...
13- Management are unsure of what health and safety records must be kept or how to fill them out, what are the factors, action to be taken, date, additional factors and KPI's ?
Marketers must ensure they keep the company at the centre of all analysis when carrying out...
Marketers must ensure they keep the company at the centre of all analysis when carrying out an investigation of the macroenvironment and the immediate environment. true-false
Determine how long medical records must be kept in your state (NEW YORK). Remember to include...
Determine how long medical records must be kept in your state (NEW YORK). Remember to include special circumstances such as minors. Research medical record storage options in your state( New York) as well. How can someone properly permanently dispose of a medical record?
In an area of Russia, records were kept on the relationship between the rainfall (in inches)...
In an area of Russia, records were kept on the relationship between the rainfall (in inches) and the yield of wheat (bushels per acre). Rainfall (inches) Yield(Bushels per acre) 11 42.3 14.6 52 13.7 61.3 23.2 73.9 28.3 92.1 10.7 44.3 9.4 44.7 23.7 77.2 24.2 80.3 A) Create a scatterplot for the data above. The Yield is to be the response variable. Describe the form, direction and strength of the association between these two variables. (B) Calculate a LSRE...
Where and how are financial records and reports kept?  Who is responsible for their storage?  Is there a...
Where and how are financial records and reports kept?  Who is responsible for their storage?  Is there a length of time that records should (or are required to) be kept?
A bank has kept records of the checking balances of its customers and determined that the...
A bank has kept records of the checking balances of its customers and determined that the population average daily balance of its customers is $300 with a population standard deviation of $48. A random sample of 144 checking accounts is selected. a. What is the probability that the sample mean will be more than $306.60? b. What is the probability that the sample mean will be less than $310? c. What is the probability that the sample mean will be...
1. In an area of the Midwest, records were kept on the relationship between the rainfall...
1. In an area of the Midwest, records were kept on the relationship between the rainfall (in inches) and the yield of wheat (bushels per acre).      Rain (inches) 10.5 8.8 13.4 12.5 18.8 10.3 7.0 15.6 16.0 Yield (bushels/acre) 50.5 46.2 58.8 59.0 82.4 49.2 31.9 76.0 78.8 Find the correlation coefficient for the given data. a. 4.267 b. 0.9808 c. 0.9620 d. 3.158 2. A study was conducted to compare the average time spent in the lab each...
A bank has kept records of the checking balances of its customers and determined that the...
A bank has kept records of the checking balances of its customers and determined that the average daily balance of its customers is $300 with a standard deviation of $48. A random sample of 144 checking accounts is selected. a. What is the probability that the sample mean will be more than $306.60? b. What is the probability that the sample mean will be less than $308? c. What is the probability that the sample mean will be between $302...
The manager of a music store has kept records of the number of CDs bought in...
The manager of a music store has kept records of the number of CDs bought in a single transaction by customers who make a purchase at the store. The accompanying table gives six possible outcomes and the estimated probability associated with each of these outcomes for the chance experiment that consists of observing the number of CDs purchased by a randomly selected customer at the store. Number of CDs purchased 1 2 3 4 5 6 or more Estimated probability...
A bank has kept records of the checking balances of its customers and determined that the...
A bank has kept records of the checking balances of its customers and determined that the average daily balance of its customers is $300 with a standard deviation of $50. A random sample of 145 checking accounts is selected. a) What is the probability that the sample mean will be more than $307.60? b) What is the probability that the sample mean will be between $300 and $310? c) What is the probability that the sample mean will be at...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT