(1) The board of a company must cause accounting records to be kept that—
(a) correctly record and explain the transactions of the company; and
(b) will at any time enable the financial position of the company to be determined with reasonable accuracy; and
(c) 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
(d) will enable the financial statements of the company to be readily and properly audited.
(2) Without limiting subsection (1), the accounting records must contain—
(a) entries of money received and spent each day and the matters to which it relates:
(b) a record of the assets and liabilities of the company:
(c) if the company's business involves dealing in goods—
(i) a record of goods bought and sold, except goods sold for cash in the ordinary course of carrying on a retail business, that identifies both the goods and buyers and sellers and relevant invoices:
(ii) a record of stock held at the end of the financial year together with records of any stocktakings during the year:
(d) if the company's business involves providing services, a record of services provided and relevant invoices.
(3) The accounting records must be kept—
(a) in written form and in English; or
(b) in a form or manner in which they are easily accessible and convertible into written form in English.
(4) If the board of a company fails to comply with the requirements of this section, every director of the company commits an offence and is liable on conviction to the penalty set out in section 374(2).
Compare: 1955 No 63 s 151(1), (2), (4), (6), (7); 1980 No 43 s 7(1)