Page 14 - LILITED LIABILITY COMPANIES - INTERMEDIATE

COMPANY ACCOUNTING SESSION 14

1.11 ACCOUNTING RECORDS

There is a price to be paid for the benefits of limited liability. To prevent abuse, the activities of limited
companies are much more closely regulated than those of sole traders. For our present purposes, the most
important regulations are those relating to company accounts. Limited companies are obliged to prepare
annual accounts, the format and content of which are prescribed in detail by IAS 1 – Presentation of
financial statements. The accounts must be audited by an independent person and they must be published;
this means that a copy must be delivered to the Registrar of Companies and is available for inspection by
any member of the public.

IAS 1 states that a company's accounts (for publication) for a financial year are to be taken as consisting of:

(a) Statement of Profit or Loss and Other Comprehensive Income,
(b) Statement of Financial Position,
(c) Statement of Changes in Equity,

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