Chapter 5 - Legislation Flashcards
What is noted under CA 2006, s 386?
Every company is required to keep adequate accounting records. They must be sufficient:
- To show and explain the company’s transactions;
- To disclose with reasonable accuracy, at any time, the financial position of the company at that time;
- To enable the directors to ensure that any accounts required to be prepared comply with the requirements of the Act.
What is noted under CA 2006, s 389?
If a company fails to comply with s 386, then every officer of the company will be liable.
What is noted under CA 2006, s 388?
Accounting records must be kept at the registered office or such places as the directors otherwise think fit.
What is noted under CA 2006, s 381?
Small companies are exempt from audit.
What are noted under CA 2006, s 382 & 383?
A company is considered small if it complied with at least two of:
- Turnover of not more than £5.6m
- Balance sheet total not more than £2.8m
- Number of employees less than 50
What is noted under CA 2006, s 384?
Certain companies are exempted from the small companies exemption under s 381. These are companies such as insurance and public companies.
What is noted under CA 2006, s 294?
Directors of every company must prepare accounts of the company for each financial year.
What is noted under CA 2006, s 396?
The financial statements as noted under s 294, must comprise of:
a) Balance Sheet; and
b) Profit and Loss Account
What is noted under CA 2006, s 414?
Annual accounts must be approved by the board and signed by a director on the balance sheet.
What is noted under CA 2006, s 393?
Directors must not approve accounts unless they are satisfied that they give a true and fair view of the assets, liabilities, financial position and profit or loss:
a) In the case of an individual company, of the company;
b) In the case of a company’s group accounts of the undertakings included in the consolidation as a whole, so far as concerns members of the company.
What is noted under CA 2006, s 423?
Every company must send a copy of its accounts to:
a) Every member;
b) Every holder of any debenture;
c) Every person entitled to receive notice of general meetings.
What is noted under CA 2006, s 485(1)?
Every company must appoint an auditor or auditors unless for each financial year the directors reasonably resolve otherwise on the ground that audited accounts are unlikely to be required.
What are noted under CA 2006, s 1219, 1212 and 1214?
s 1219 states that auditors must be appropriately qualified.
s 1212 states that they must be members of recognised supervisory bodies.
s 1214 requires that auditors meet the independence requirements.
What is noted under CA 2006, s 434?
accounts must be accompanied by an auditor’s report unless it is an exempt company and the directors have taken advantage of this exemption.
What are noted under CA 2006, s 441 and 444?
s 441 states that directors must deliver the audited accounts and reports to the Registrar.
s 444 states that this includes small companies.