Preliminary Matters

Part 6 – Financial Statements, Annual Return and Audit

The Part of the Act which deals with Financial Statements, etc, has tried to clean the legislation up a little – to define terms which will make the legislation easier to read and more succinct.

For example, the term “financial statements” is now used instead of “accounts.” “Adequate accounting records” is used instead of “proper books of account”; “statutory auditor” is used instead of “auditor”. There are a number of such changes, and all of them can be found here (Section 272), here (Section 274) and here (Section 275).

References to IFRS are to the International Financial Reporting Standards.

The financial reporting frameworks under which a company can draw up its financial statements will either be in accordance with the IFRS or in accordance with the Companies Act 2014.

The definition of realised profits can be found here (Section 276). It is unchanged in substance.

Section 279 provides that in limited cases US accounting standards may be used.