This only applies to listed companies specifically,
but it is good practice for all companies to include such a statement. The
reasons for this are;
but it is good practice for all companies to include such a statement. The
reasons for this are;
·
The readers of the accounts can have a clear
understanding of what the directors’ are responsible for;
The readers of the accounts can have a clear
understanding of what the directors’ are responsible for;
·
It also helps remain the directors’ of their
responsibilities.
It also helps remain the directors’ of their
responsibilities.
Here is an example of some wording. Note that includes
references not only to the directors’ responsibility for producing accounts but
also responsibilities for:
references not only to the directors’ responsibility for producing accounts but
also responsibilities for:
·
Consideration of the company’s (and group’s as
application) ability to continue as a going concern-chapter 24.
Consideration of the company’s (and group’s as
application) ability to continue as a going concern-chapter 24.
·
The director’s responsibility in respect of fraud and
other irregularities-chapter 20.
The director’s responsibility in respect of fraud and
other irregularities-chapter 20.
Example
Directors’ responsibilities for the financial
statements
statements
The directors are required
to prepare financial statements for each financial period with comply with the
provisions of the company’s act 2006 and give a true and fair view of the state
of affairs of the company (and the group) as at the end of the accounting
period and of the profit or loss for the period. Suitable accounting policies
consistently applied and supported by reasonable and prudent judgments and
estimates have been used in the preparation of the financial statements.
to prepare financial statements for each financial period with comply with the
provisions of the company’s act 2006 and give a true and fair view of the state
of affairs of the company (and the group) as at the end of the accounting
period and of the profit or loss for the period. Suitable accounting policies
consistently applied and supported by reasonable and prudent judgments and
estimates have been used in the preparation of the financial statements.
Applicable accounting
standards have been followed and, as the directors have a reasonable
expectation that the company and the group have adequate resource to continue
in operational existence for the foreseeable future, the financial statement
have been prepared on a going concern basis.
standards have been followed and, as the directors have a reasonable
expectation that the company and the group have adequate resource to continue
in operational existence for the foreseeable future, the financial statement
have been prepared on a going concern basis.
The directors are responsible for maintaining adequate
accounting records, for safeguarding the assets of the company (and the group)
and for taking reasonable steps for the prevention and detection of fraud and
other irregularities.
accounting records, for safeguarding the assets of the company (and the group)
and for taking reasonable steps for the prevention and detection of fraud and
other irregularities.
The auditors are, of
course, required to consider evidence to support an opinion on the truth and
fairness of these statements made by the directors.
course, required to consider evidence to support an opinion on the truth and
fairness of these statements made by the directors.