Section 374 CAMA 2020

Section 374 Companies and Allied Matters Act is about Companies to keep accounting records. It is under Chapter 14 (Financial statements, audit and accounting records) of the Act.

(1) Every company shall cause accounting records to be kept in accordance with this section.

(2) The accounting records are sufficient to show and explain the transactions of the company and as such, are to—(a) disclose with reasonable accuracy, at any time, the financial position of the company ; and

(3) The accounting records shall, in particular, contain—

(a) entries from day to day of all sums of money received and expended by the company, and the matters in respect of which the receipt and expenditure took place ; and

(b) a record of the assets and liabilities of the company.

(4) If the business of the company involves dealing in goods, the accounting records shall contain—

(a) statements of stocks held by the company at the end of each year of the company ;

(b) all statements of stocktakings from which any such statement of stock as is mentioned in paragraph (a) has been or is to be prepared ; and

(c) except in the case of goods sold by way of ordinary retail trade,statements of all goods sold and purchased, showing the goods and the buyers and sellers in sufficient detail to enable all these to be identified.

(5) A parent company that has a subsidiary undertaking in relation to which subsection (4) does not apply shall take reasonable steps to secure that the undertaking keeps such accounting records as to enable the directors of the parent company to ensure that any accounts required to be prepared under this Part comply with the requirements of this Act.

(6) Each public company shall keep its audited accounts displayed on its website