29. Financial statements

29. Financial statements(1) If a company provides any financial statements, including any annual financial statements, to any person for any reason, those statements must- (a) satisfy the financial reporting standards as to form and content, if any such standards are prescribed; (b) present fairly the state of affairs and business of the company, and explain the transactions and financial position of the business of the company; (c) show the company‟s assets, liabilities and equity, as well as its income and expenses, and any other prescribed information; (d) set out the date on which the statements were published, and the accounting period to which the statements apply; and [Para. (d) substituted by s. 19 of Act 3/2011] (e) bear, on the first page of the statements, a prominent notice indicating- (i) whether the statements- (aa) have been audited in compliance with any applicable requirements of this Act; (bb) if not audited, have been independently reviewed in compliance with any applicable requirements of this Act; or (cc) have not been audited or independently reviewed; and (ii) the name, and professional designation, if any, of the individual who prepared, or supervised the preparation of, those statements. (2) Any financial statements prepared by a company, including any annual financial statements of a company as contemplated in section 30, must not be- (a) false or misleading in any material respect; or (b) incomplete in any material particular, subject only to subsection (3). (3) A company may provide any person with a summary of any particular financial statements, but- (a) any such summary must comply with any prescribed requirements; and (b) the first page of the summary must bear a prominent notice- (i) stating that it is a summary of particular financial statements prepared by the company, and setting out the date of those statements;(ii) stating whether the financial statements that it summarises have been audited, independently reviewed, or are unaudited, as contemplated in subsection (1)(e); (iii) stating the name, and professional designation, if any, of the individual who prepared, or supervised the preparation of, the financial statements that it summarises; and (iv) setting out the steps required to obtain a copy of the financial statements that it summarises. (4) Subject to subsection (5), the Minister, after consulting the Council, may make regulations prescribing- (a) financial reporting standards contemplated in this Part; or (b) form and content requirements for summaries contemplated in subsection (3). (5) Any regulations contemplated in subsection (4)- (a) must promote sound and consistent accounting practices; (b) in the case of financial reporting standards for public companies, must be in accordance with the International Financial Reporting Standards of the International Accounting Standards Board or its successor body; and [Para. (b) substituted by s. 19 of Act 3/2011] (c) may establish different standards applicable to- (i) profit and non-profit companies; and (ii) different categories of profit companies. (6) Subject to section 214(2), a person is guilty of an offence if the person is a party to the preparation, approval, dissemination or publication of- (a) any financial statements, including any annual financial statements contemplated in section 30, knowing that those statements- (i) fail in a material way to comply with the requirements of subsection (1); or [Subpara. (i) substituted by s. 19 of Act 3/2011] (ii) are materially false or misleading, as contemplated in subsection (2); or (b) a summary of any financial statements, knowing that-(i) the statements that it summarises do not comply with the requirements of subsection (1), or are materially false or misleading, as contemplated in subsection (2); or (ii) the summary does not comply with the requirements of subsection (3), or is materially false or misleading.

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