AMGL & Co.
Certified Public Accountants
General requirements for financial statements
Reference to the reporting documents
Section 357(2) defines a reference to the reporting documents for a financial year is a reference to all of the following –
(a) the financial statements for the financial year;
(b) the directors’ report for the financial year;
(c) the auditor’s report on those financial statements.
True and fair view
Unless the company falls within the reporting exemption, the financial statements must give a true and fair view of the financial position and financial performance of the company (sections 380(1), (2) and (7)).
Accounting disclosure requirement
The financial statements must comply with the accounting disclosure requirement in Schedule 4 (section 380(3)).
Part 1 of Schedule 4 - Disclosures for Companies whether or not Falling within Reporting Exemption
Aggregate amount of any outstanding loans made
Statement of financial position and reserve movement of the holding company to be contained in notes to annual consolidated financial statements
Particulars of ultimate parent undertaking
State whether prepared in accordance with applicable accounting standards
Part 2 of Schedule 4 - Disclosures for Companies not Falling within Reporting Exemption
Remuneration of auditor
Information on directors’ emoluments etc.
The notes to financial statements must contain the information prescribed by the Companies (Disclosure of Information about Benefits of Directors) Regulation, Cap. 622G (section 383).
Directors’ retirement benefits
Payments or benefit for termination of service of directors
Loans, quasi-loans and other dealings in favour of
directors of company or its holding company;
bodies corporate controlled by such directors; and
entities connected with such directors
Material interests of directors in transactions, arrangements or contracts entered into by the company or another company in the same group of companies (not required if falls within reporting exemption (section 23 of Cap. 622G))
Consideration to third parties for directors’ services