C1C2C3C4C5C6C7C8Part VII Accounts and Audit

Annotations:
Modifications etc. (not altering text)
C1

Pt. VII (ss. 221–262) applied with modifications by S.I. 1985/680, regs. 4–6, Sch.

C2

Part VII (ss. 221-262) continued by S.I. 1990/355, arts. 6, 7, Sch. 2 para. 13(1)(a)

C3

Part VII (ss. 221-262) amended by S.I. 1990/355, arts. 6, 7, Sch. 2 para. 1(2)(5)

C4

Part VII (ss. 221-262) extended by S.I. 1990/355, arts. 6, 7, Sch. 2 para. 1(3)(5)

C5

Part VII (ss. 221-262) modified by S.I. 1990/355, arts. 6, 7, Sch. 2 paras. 1(4)(5), 3(2)(3)

C6

Part VII (ss. 221-262) excluded by S.I. 1990/355, arts. 6, 7, Sch. 2 para. 3(1)(3)

C7

Part VII (ss. 221-262) restricted by S.I. 1990/355, arts. 6, 7, Sch. 2 para. 13(1)(b)

Pt. VII (ss. 221-262) applied (with modifications) (21.7.1993) by S.I. 1993/1820, reg. 4, Sch. paras.1, 2 (as amended (1.10.2005) by S.I. 2005/1987, reg. 3)

Pt. VII (ss. 221-262) applied (with modifications) (6.4.2001) by S.I. 2001/1090, reg. 3, Sch. 1 (as amended (4.3.2004) by S.I. 2004/355, art. 8, (1.10.2005) by S.I. 2005/1989, reg. 2, Sch. 1 and (12.1.2006) by S.I. 2005/3442, reg. 2(2)(b), Sch. 2 para. 3(1))

Chapter I Provisions Applying to Companies Generally

Accounting records

C9221 Duty to keep accounting records.

1

Every company shall keep accounting records which are sufficient to show and explain the company’s transactions and are such as to—

a

disclose with reasonable accuracy, at any time, the financial position of the company at that time, and

b

enable the directors to ensure that F1any accounts required to be prepared under this Part comply with the requirements of this Act F2(and, where applicable, of Article 4 of the IAS Regulation).

2

The accounting records shall in particular contain—

a

entries from day to day of all sums of money received and expended by the company, and the matters in respect of which the receipt and expenditure takes place, and

b

a record of the assets and liabilities of the company.

3

If the company’s business involves dealing in goods, the accounting records shall contain-

a

statements of stock held by the company at the end of each financial year of the company,

b

all statements of stocktakings from which any such statement of stock as is mentioned in paragraph (a) has been or is to be prepared, and

c

except in the case of goods sold by way of ordinary retail trade, statements of all goods sold and purchased, showing the goods and the buyers and sellers in sufficient detail to enable all these to be identified.

4

A parent company which has a subsidiary undertaking in relation to which the above requirements do not apply shall take reasonable steps to secure that the undertaking keeps such accounting records as to enable the directors of the parent company to ensure that F1any accounts required to be prepared under this Part comply with the requirements of this Act F2(and, where applicable, of Article 4 of the IAS Regulation).

5

If a company fails to comply with any provision of this section, every officer of the company who is in default is guilty of an offence unless he shows that he acted honestly and that in the circumstances in which the company’s business was carried on the default was excusable.

6

A person guilty of an offence under this section is liable to imprisonment or a fine, or both.