Accounting / Bookkeeping
FAQs
1) Must an entity maintains Accounting records / Financial Statements and Reports?
- An entity must ensure the accounting documents and records to be kept, readily for inspections and auditing, if so required.
- The accounting documents must be prepared according to approved accounting standards.
- The Financial Statement shall be audited, if so required.
- Non-compliance penalty is up to five hundred thousand ringgit Malaysia (RM500,000) and/or one (1) year imprisonment.
2) How frequent should the Financial Statement/Reports be prepared for a Company?
- Within eighteen (18) months from the date of its incorporation and subsequently within six (6) months of its financial year ended.
E.g. Company incorporated on 24 January 2021 must have its financial statements prepared before or by 24 July 2022.
- Appropriate entries shall made in the accounting record within sixty (60) days of the completion of the transaction/operations.
E.g. Company purchased computer on 03 February 2022, and such transaction must be recorded in the books by 03 April 2022.
3) How long does the Accounting documents and records must be kept for?
- Seven (7) years.