Skip to content

CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Disclosures and Website Disclosures

Meera Pharma Ltd, a listed company, is preparing its Board's report. Which statement in the Directors' Responsibility Statement applies specifically because the company is listed?

The statement that the directors laid down internal financial controls and that they are adequate and operating effectively applies specifically to listed companies. Under section 134(5)(e) this limb is required only for listed companies, whereas the other limbs apply generally.

  1. AThat the annual accounts were prepared on a going concern basis
  2. BThat applicable accounting standards were followed with proper explanation of material departures
  3. CThat proper and sufficient care was taken for maintaining adequate accounting records
  4. DThat internal financial controls were laid down and are adequate and operating effectivelyCorrect

Explanation

Section 134(5)(e) requires the statement on internal financial controls only in the case of a listed company. The other statements, on accounting standards, accounting records and going concern, apply to all companies.

Did you get it right without looking?

One question tells you little. A timed set on Board Disclosures and Website Disclosures shows your real accuracy, how long you take and where you lose marks.

Practise Board Disclosures and Website DisclosuresFree diagnostic mock

More Board Disclosures and Website Disclosures questions