The Companies Act No. 17 of 2015Section 638 of The Companies Act No. 17 of 2015: Requirements for individual financial statements
(1) In preparing an individual financial statement for a financial year, the directors of a company shall ensure that the statement complies with the requirements of this section.
(2) The requirements are that—
(a) the statement comprises—
(i) a balance sheet as at the last day of the financial year;
(ii) a profit and loss account;
(iii) a statement of cash flow; and
(iv) a statement of change in equity; (b) the statement—
(i) in the case of the balance sheet—provides a true and fair view of the financial position of the company as at the end of the financial year; and
(ii) in the case of the profit and loss account—provides a true and fair view of the profit or loss of the company for the financial year; and
(c) the statement complies with the prescribed financial accounting standards relating to—
(i) the form and content of the balance sheet and profit and loss account; and
(ii) additional information to be provided in the form of notes to the statement.
(3) If compliance with—
(a) the prescribed financial accounting standards; and
(b) any other provision made by or under this Act as to the matters to be included in a company's individual financial statement or in notes to the statement,
would not be sufficient to provide a true and fair view, the directors shall provide
the necessary additional information in the statement or in a note to it.
(4) If, in special circumstances, compliance with the provisions referred to insubsection (4) is not consistent with the requirement to provide a true and fair view, the directors shall depart from the provisions to the extent necessary to provide a true and fair view.
(5) The directors shall provide in a note to the financial statement particulars of any such departure, the reasons for it and its effect in accordance with prescribed accounting standards.
Check the current authoritative text and amendment history before relying on this provision.
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