Understanding Penalties and Compliance Requirements for Audited Financial Statements [Issue 1 of 2]
Introduction
In the intricate landscape of corporate governance, the submission of audited financial statements stands as a cornerstone of transparency and accountability. Ensuring these statements are prepared, circulated, and lodged within the stipulated timelines is not just a statutory obligation but a crucial measure to maintain corporate integrity and avoid significant penalties. The Companies Commission of Malaysia (SSM) has established stringent guidelines and penalties to enforce compliance, and understanding these requirements is essential for any company operating within Malaysia.
Compliance Requirements
The SSM mandates that companies adhere to specific timelines for the preparation, circulation, and lodgement of audited financial statements:
- Directors are required to prepare the financial statements within 18 months from the date of incorporation and subsequently within 6 months after the end of each financial year.
- The preparation must reflect the true and fair view of the financial performance and position of the company, aligning with the applicable accounting standards.
- Once prepared, the financial statements must be circulated to every member, director, auditor, and debenture holder within 6 months from the financial year.
- This ensures that all relevant parties are informed and can make decisions based on the most current financial data available.
- After circulation, companies are required to lodge the financial statements with the Registrar within 30 days.
- Lodgement marks the final step in the reporting process, formalizing the financial records with the SSM.
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