ACCOUNTING RULES

​Every company is required to maintain accounting records in accordance with the Companies Act. In addition, if a company falls within a certain threshold (with respect to Balance Sheet total, total revenue and average number of employees) the preparation of financial statements can be made in accordance with the General Accounting Principles for Smaller Entities (GAPSE).

 

SINGLE-ENTRY 
 
The Commercial Code requires that every trader maintains a waste book, a journal, a cash book, inventory book, and a ledger.
 
DOUBLE-ENTRY
 
Books of accounts shall be kept on a double entry basis, in line with the requirements of the International Financial Reporting Standards.
 
BOOK-KEEPING
 
Every company is required to keep proper accounting records providing information on receipts and expenditure, sales and purchases, assets and liabilities. Companies must submit accounts at the end of every financial year, which include a profit and loss account, a balance sheet, and notes to the accounts.
 
AUDITING 
 
Companies are required to submit accounts which are audited in accordance with the International Standards on Auditing - private companies meeting certain criteria which are defined in the Companies Act may be exempt.
 
The Accountancy Profession Act provides regulations to ensure that all auditors and audit firms maintain the highest possible professional standards. These directives are established by the Accountancy Board.