Companies Act 2014 section 291

Companies Act entity financial statements

Section 291 sets out the required composition of Companies Act entity financial statements, the standards they must meet, and the overriding obligation to present a true and fair view of a company's financial position and performance.

• Entity financial statements must include a balance sheet at year end, a profit and loss account for the year, and any other statements required by the company's financial reporting framework
• The statements must give a true and fair view of assets, liabilities, financial position and profit or loss, and must comply with the applicable schedule (Schedule 3, 3A or 3B depending on company size), accounting standards and the Act
• Where compliance alone is not sufficient for a true and fair view, additional information must be provided — and in special circumstances directors must depart from the Act's provisions, disclosing the departure, its reasons and its effect in a note
• Failure to comply with these requirements is a category 2 offence applying to the company and any officer in default, including shadow directors and de facto directors