The Companies Accounts Acts do not apply to banks or insurance companies. Instead such companies must, respectively, follow the accounting, auditing and filing requirements contained in the Financial Services (Banking) Act, (specifically the Banking (Accounts Directive) Regulations 1997) and the Insurance Companies Act 1987 (specifically the Insurance (Accounts Directive) Regulations 1997). In addition all companies licensed and regulated by the Financial Services Commission under the Financial Services (Investment and Fiduciary Services) Act must comply with any additional disclosure requirements contained in this Act and with regulations made thereunder. All companies are required under law to keep proper books and records. In addition a company must prepare annual accounts (including group accounts if applicable) which give a true and fair view of the company’s (group’s) state of affairs and profit or loss for the financial reporting period. A balance sheet and profit and loss account must be set before the company in general meeting not later than eighteen months after incorporation and subsequently once at least in every calendar year. The directors of a company must also prepare an annual report for each financial year which includes at least a fair review of the development and state of affairs of the company’s business (and its subsidiary undertakings, if applicable) and its financial position as at the end of that financial year. The directors’ report must also contain particulars of, inter-alia, any important events which may have occurred since the end of the last financial year, any likely future developments, state what dividend, if any, is recommended for payment and the amount which has been transferred to reserves. There are no statutory provisions governing the preparation and presentation of accounts for unincorporated businesses or filing thereof. 2.11.2 - Accounting Principles and Standards As a large number of accountants and auditors in Gibraltar are members of two of the United Kingdom’s major accounting bodies, guidance on accounting principles is generally obtained from pronouncements of the United Kingdom Accounting Standards Board. However, in certain circumstances, other internationally recognised accounting standards may be followed. Legislation also permit companies to follow International Financial Reporting Standards.
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