Company
law requires the directors to prepare accounts for each
financial year which give a true and fair view of the state
of affairs of the company and the group at the end of the
year, and of the profit or loss of the group for that period.
In preparing those accounts, the directors are required
to:
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select suitable accounting policies
and then apply them consistently;
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make judgements and estimates that
are reasonable and prudent;
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state whether applicable accounting
standards have been followed, subject to any material
departures disclosed and explained in the accounts;
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prepare the accounts on the going concern
basis unless it is inappropriate to assume that the
company will continue in business. |
The directors are responsible for keeping proper accounting
records which disclose with reasonable accuracy at any time
the financial position of the company and enable them to
ensure that the accounts comply with the Companies Act 1985.
They are also responsible for safe-guarding the assets of
the company and hence for taking reasonable steps for the
prevention of fraud and other irregularities.
