Annual Financial Statements
What Are Annual Financial Statements?
Annual Financial Statements (AFS) are your financial reports over a specific period of time. They must be produced by all South African entities created through legislation (companies, close corporations, NGOs, etc.). So all public and state-owned companies must file a copy of their annual financial statements. They must also meet the requirements of the published Financial Reporting Standards.
Companies are expected to produce these Annual Financial Statements within a specific period of time according to the Companies Act (No71 of 2008 section 30). You can download the act here. In the act is says that every year, each company must prepare these annual financial statements within 6 months after the end of its financial year; or a shorter timeframe if appropriate.
It isn’t uncommon for companies to miss the deadline but it is breaking the Companies Act which this can have serious consequences. Even if you are in a tricky situation like this, it is time now to do something about it and give Louw Cooper Rasool a call. Don’t delay it, act now.
Louw Cooper Rasool advises our clients on the relevant requirements and we assist with the preparation of AFS that typically consists of:
- A balance sheet reporting the financial position (assets, liabilities and equity)
- An income statement depicting annual company performance
- A cash flow statement to track cash reserve movements
- Policies of the entity to indicate which accounting policies and standards are being used
- Notes to the AFS which provides invaluable contextual information
- A report by an independent party can also form part of the AFS and may, in some cases, be required by law