Section 846 CAMA 2020
Section 846 Companies and Allied Matters Act is about Accounting records and statement of accounts. It is under Chapter 6 (Accounts and annual returns) of the Act.
(1) The trustees of an association shall ensure that accounting records are kept in respect of the association and such accounting records shall be sufficient to show and explain the transactions of the association, and—
(a) disclose at any time, with reasonable accuracy, the financial position of the association at that time ; and
(b) enable the trustees to ensure that statements of accounts prepared by them comply with subsection (3).
(2) The accounting records shall, in particular, contain—
(a) entries showing from day to day, all sums of money received and expended by the association, and the matters in respect of which the receipt and expenditure took place ; and
(b) a record of the assets and liabilities of the association.
(3) The Commission may make regulations generally for the purpose of this Part and, in particular, without prejudice to the generality of the foregoing provisions, make regulations—
(a) prescribing the forms, returns and other information required under this Part ;
(b) prescribing the procedure for obtaining any information required under this Part ;
(c) requiring returns to be made within the period specified therein by any body corporate to which this Part applies ; and
(d) prescribing relevant accounting principles or standards to be adopted by the association.
(4) Regulations under subsection (3) may in particular provide—
(a) for the statement to be prepared in accordance with methods and principles as are specified or referred to in the regulations ; and
(b) any information to be provided by way of notes to the accounts.
(5) The financial year of an association shall be determined by the Commission through regulations issued under subsection (3) and the Commission may also make provision for determining the financial years of an association for the purposes of this Act and any regulation made under it.
