Section 288, The Companies Act, 2009

(1) The directors of every company shall in respect ofeach financial year of the company, prepare financial statements for the year which shall comply with International Financial Reporting Standards. (2) Subject to subsection (3), the financial statements required under subsection (1) shall include– (a) statement of the accounting policies; (b) the balance sheet as at the last day of the financial year; (c) an income statement or, in the case of a company not trading for profit, an income and expenditure account for the year; (d) notes on the accounts; (e) the auditor’s report; (f) the director’s report; (g) cash flow statements; (h) a five-year financial summary for publicly traded companies; and (i) in the case of a holding company, the group financial statements. (3) The financial statements of a private company need not include the matters stated in paragraphs (a), (g), (h) and (i) of subsection (2). (4) The directors shall at their first meeting after the incorporation of the company, determine to what date in each year financial statements shall be made up, and they shall give notice of the date to the Commission within 14 days of the determination. accounts and books by non-diretors. Driectors’ duty to prepare annual 214 215 (5) In the case of a holding company, the directors shall ensure that, except where in their opinion there are good reasons against it, the financial year of each of its subsidiaries shall coincide with the year of the company. Form and content of company, individual and group financial statements 288. , shall comply with the requirements of the Third Schedule (so far as applicable) with respect to their form and content, and with the International Financial Reorting Standards adopted from time to time by the Institute of Chartered Accountants of Sierra Leone after due consultation with such accounting bodies as they may think fit for these purposes provided that such accounting standards do not conflict with of this Act or that Schedule. (2) The balance sheet shall give a fair representation of the state of affairs of the company as at the end of the year; and the profit and loss account shall give a true and fair view of the profit or loss of the company for the year. (3) The cash flow statements shall provide information on the generation and utilisation of funds by the company during the year. (4) The five-year financial summary shall provide a report for a comparison over a period of five years or more of vital financial information. (5) Subsection (2) overrides– (a) the requirements of the Second Schedule; (b) all other requirements of this Act as to the matters to be included in the accounts of a company or in notes to those accounts; and accordingly subsections (6) and (9) shall have effect. (6) If the balance sheet or profit and loss account drawn up in accordance with those requirements would not provide sufficient information to comply with subsection (2), any necessary additional information shall be provided in that balance sheet or profit and loss account, or in a note to the accounts. (7) If, owing to special circumstances in the case of any company compliance with such requirement in relation to the balance sheet or profit and loss account would prevent compliance with subsection (2), any necessary additional information shall be provided in that balance sheet or profit and loss account, or in a note to the (8) If the directors depart from such requirement, particulars of the departure, the reasons for it and its effect shall be given in a note to the accounts. (9) Subsections (1) to (8) shall not apply to group accounts prepared under section 290 and subsections (1) and (2) shall not apply to a company’s income statement (or require the notes otherwise required in relation to that account) if– (a) the company has subsidiaries; and (b) the income statement framed as a consolidated account dealing with all or any of the subsidiaries of the company as well as the company– Form and content of 216 217 (i) complies with the requirements of this Act relating to consolidated profit and loss accounts; and (ii) shows how much of the consolidated profit and loss account for the year is dealt with in the individual financial statements of the company. (10) If group financial statements are prepared and advantage is taken of subsection (6), that fact shall be disclosed in a note to the group financial statements.