The preparation of statutory accounts and reporting is regulated, therefore if the reports are to comply with the law they have to meet the requirements of the relevant GAAP or accounting standards. The following information is the minimum that must be disclosed;

• The profit and loss account
• A balance sheet
• Notes to accounts
• The directors’ report
• An auditors report

Public companies are required to produce more statements for example cash flow statements and operating financial reviews in addition to the ones above.

Profit And Loss Account

This statement shows the business' performance during the year and is also known as the income statement. The profit and loss account discloses information such as turnover (or sales), cost of sales, operating expenses, administrative costs, interest income and interest expenses.

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