Companies and nearby companies (CCs) should keep records of assets and liabilities; recording of fixed assets; registers containing daily entries of received and disbursed cash; keep records of any purchase or sale of credit and services provided or provided by the credit, with sufficient detail on the nature of the transactions and the identification of the parties concerned; annual stock extracts; registers that allow vouchers to support the determination of the value of the stock and the records of the accounting records at the end of the year.
The company must also keep a record of the members. contributions, profits and the revaluation of fixed assets as well as the amount of loans to members and members of the members, detailing the nature and purpose of each transaction.
These records must be kept in such a way as to provide proper signs of counterfeiting and facilitate the discovery of such counterfeiting. A company that does not keep such accounting records and any member who does not take all reasonable steps to prevent counterfeiting commits a criminal offense. However, if the members entrusted the management of accounting records or the maintenance of the internal control system to a "competent and trusted person", this would be sufficient defense.
CC financial year is the annual reporting period. The CC must enter the end of its fiscal year in its founding statement. As with other information in the founding statement, the end date of the financial year can be changed by entering a modified founding statement.
The members of the company shall make financial statements within a maximum period of nine months after the end of each financial year. The financial statements shall be approved and signed by all or on behalf of all members of the company and shall include an accounting balance sheet and notes and profit and loss accounts or any comparable financial statement if such form is appropriate and any such note.
The financial statements shall separate the accumulated amounts at the end of the accounting year and the changes in such amounts, the profits, the revaluation of tangible assets, the amount of the loans to members and the amount of the loans lent by the members, in the year in which the members are contributed.
The Close Corporation law does not require Directors' Report or Auditors and does not contain a schedule that sets out specific requirements for preparing the annual financial statements. The CC's financial statements adequately corroborate the company's position at the end of the financial year and the result of its operation in accordance with the generally accepted accounting practice (GAAP) in accordance with the company's business.
In defining what constitutes a generally accepted accounting policy for the business of a given company, account needs to be taken of the needs of the primary users of the members and financial statements.
Over the years, accounting practices in various economic and industrial environments have evolved so that they record and fairly present transactions and events that characterize such environments. In deciding what is "fit for business", account must be taken of the company's business and management activities and accepted accounting practices in the company's work environment.
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