Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the group and of the profit or loss of the group for that year.  In preparing those financial statements, the directors are required to:

 

a.                   select suitable accounting policies and then apply them consistently;

 

b.                   make judgements and estimates that are reasonable and prudent;

 

c.                   state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.

 

d.                   prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

 

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the group and to enable them to ensure that the financial statements comply with the requirements of the Companies Act 1985.  They are also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.