Module 19 - Regulating Of Financial Reporting

Question 1

What does adequate accounting records mean?

Answer 1

1. Show and explain companies transactions
2. Disclose with reasonable accuracy, at any time, the financial position of the company at that time.
3. Enable the directors to prepare FS in accordance with accounting standards.

Question 2

Accounting records of all companies must include:

Answer 2

Entries showing all the money received and expended by the company, with supporting explanations.

A record of the assets of the company.

Question 3

If the companies business involves dealing with goods the records must also contain:

Answer 3

1. Statement of stock.
2. Statements of stock taking.
3. Statement of all goods sold and purchased, including buyers - other than stock bought by ordinary ordinary retail trade.

Question 4

How many years must a Plc and a public company hold records for?

Answer 4

3 years and 6 years

Question 5

What two additional reports must be prepared?

What additional disclosure must be made?

Answer 5

Strategic report containing:

• business environment
• strategic management
• business performance

Directors report containing:

• names
• principle activities
• recommended dividend
• business review

Staff numbers and remuneration