Accounting records

The following Corporate practice note provides comprehensive and up to date legal information covering:

  • Accounting records
  • The duty to keep accounting records
  • Where and for how long must accounting records be kept

Accounting records

A company must comply with statutory provisions set out in the Companies Act 2006 (CA 2006) in relation to keeping accounting records.

In addition, there may be other rules relating to accounting records that apply a listed company, an AIM company or a company with securities that are listed on the AQSE Main Market, AQSE Trading or AQSE Growth Market (formerly the NEX Exchange Main Board, NEX Exchange Secondary Market and NEX Exchange Growth Market), but these are outside the scope of this Practice Note.

Some or all of the statutory provisions relating to accounting records may also apply to other companies and entities, but this issue is outside the scope of this Practice Note.

The duty to keep accounting records

All companies must keep adequate accounting records. Their purpose is to ensure that businesses record transactions to enable them to show the company's financial position and to prepare accounts which comply with the CA 2006 and, where relevant, with International Accounting Standards.

Accounting records is a deliberately broad term that is not specifically defined as the records of a company may differ depending on the nature and complexity of its business. For a simple business, accounting records might include, bank statements, purchase orders, sales and purchase invoices, whilst a more sophisticated business may have integrated records, which it holds electronically.

Provided that the information in them is adequately

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