Part 11 Accounting records and financial reporting

Part 11: replaced, on 1 April 2014, by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Subpart 1—Accounting records

Subpart 1 heading: inserted, on 1 April 2014, by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

194 Accounting records must be kept

(1)

The board of a company must ensure that there are kept at all times accounting records that—

(a)

correctly record the transactions of the company; and

(b)

will enable the company to ensure that the financial statements or group financial statements of the company comply with generally accepted accounting practice (if the company is required to prepare such statements under this Act or any other enactment); and

(c)

will enable the financial statements or group financial statements of the company to be readily and properly audited (if those statements are required to be audited).

(1A)

For the purpose of subsection (1), the transactions of the company include any transaction that constitutes an act of the type described in section 105C(3) of the Crimes Act 1961.

(2)

The board of a company must establish and maintain a satisfactory system of control of its accounting records.

(3)

The accounting records must be kept—

(a)

in written form 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(3).

Section 194: replaced, on 1 April 2014, by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 194(1A): inserted, on 7 November 2015, by section 4 of the Companies Amendment Act 2015 (2015 No 97).