Section 249. General requirements for financial statements

(1) The annual financial statements for a financial year shall give a true and fair view of the financial position as at the end of the financial year and the financial performance for the financial year of the company.

(2) The annual consolidated financial statements for a financial year shall—

(a) give a true and fair view of the financial position of the company and all its subsidiaries which are dealt with in the consolidated financial statements as a whole at the end of the financial year; and

(b) give a true and fair view of the financial performance of the company and all its subsidiaries which are dealt with in the consolidated financial statements as a whole for the financial year.

(3) For the purposes of this Division, the Registrar may require additional information as he deems fit apart from the information required by the authorities referred to in section 26D of the Financial Reporting Act 1997 in the financial statements of persons reporting to such authorities as referred to in subsection 244(6).

(4) Notwithstanding any relevant provisions of the applicable approved accounting standards, the financial statements shall contain, in the notes to the statements, the information as the Registrar may determine and may include but not limited to the following:

(a) the directors’ remuneration;

(b) the directors’ retirement benefits;

(c) compensation to directors for loss of office;

(d) loans, quasi-loans and other dealings in favour of directors;

(e) the total of the amount paid to or receivable by the auditors as remuneration for their services as auditors, inclusive of all fees, percentages or other payments or consideration given by or from the company or by or from any subsidiary of the company.

(5) Any document, other than financial statements prepared in accordance with this Act or advertisement published, issued or circulated by or on behalf of a company, other than a banking corporation, shall not contain any direct or indirect representation that the company has any reserve unless the representation is accompanied—

(a) if the reserve is invested outside the business of the company, with a statement showing the manner in which it is invested and the security for such investment; or

(b) if the reserve is being used in the business of the company, with a statement to the effect that the reserve is being so used.

(6) Where a company licensed under any written law relating to insurance or takaful is required to prepare financial statements in the form prescribed by that law, the company shall be deemed to have complied with the requirements of the approved accounting standards if its financial statements are prepared in accordance with that law.

(7) If the company carries on business other than insurance or takaful business so far as that law does not require the company to deal with any matters which are required to be dealt with under approved accounting standards, the company shall comply with this section and the approved accounting standards.

(8) A holding company of any company licensed under any written law relating to insurance or takaful shall be deemed to have complied with the requirements of the approved accounting standards relating to the preparation of its financial statements provided that it carries no other business except as the holding company.