Statutory Accounts

Statutory accounts refer to the formal financial statements that a company is required by law to prepare and submit. These accounts are used to provide a clear and transparent picture of the company’s financial position and performance over a specific period, and they are often submitted to regulatory authorities, stakeholders, and investors. Statutory accounts ensure compliance with accounting standards, taxation laws, and regulatory frameworks. Here's a detailed breakdown of statutory accounts:

• Statutory accounts are financial statements that a company is legally required to prepare and file annually.
• These accounts typically include the balance sheet, income statement, and cash flow statement.
• Statutory accounts must comply with the applicable accounting standards such as IFRS or GAAP.
• Companies are required to submit their statutory accounts to the Registrar of Companies in many countries, such as the UK and India.
• The preparation and filing of statutory accounts are mandatory for all companies, including private and public limited companies.
• Statutory accounts must also be audited by an external auditor if required by the size or type of the business.
• These accounts must be filed within a certain period after the company's financial year-end, usually 9-12 months.