Broadly, accounting records are records of financial transactions of the company itself, or transactions between the company and others, which may be used as a basis for preparing a company’s annual statements of account, being its annual reports and accounts (annual accounts). Accordingly, a company's accounting records will consist of a greater number of documents, and more detailed information, than its annual accounts. Under section 386 of the Companies Act 2006 (CA 2006), all companies are required to maintain adequate accounting records. These must include enough information to show and explain the company’s transactions, and be capable of disclosing with reasonable accuracy the financial position of the company at any time. For more information, see Practice Note: Accounting records. CA