• GEN 6.2 GEN 6.2 Financial statements and financial reporting standards

    • GEN 6.2.1 GEN 6.2.1

      Each Authorised Person and Recognised Body must prepare financial statements for each financial year of the Authorised Person or Recognised Body.

      • Guidance

        1. IFR sets out specific disclosures an Authorised Person and Recognised Body must include in its financial statements when carrying on Islamic Financial Business.
        2. The financial statements prepared by an Authorised Person or Recognised Body which is a Branch may be the financial statements prepared for the Authorised Person or Recognised Body's head office.

    • GEN 6.2.2

      Each Authorised Person and Recognised Body must, except as provided under Rule 6.2.3, prepare and maintain all financial statements in accordance with the International Financial Reporting Standards ("IFRS").

    • GEN 6.2.3

      (1) An Authorised Person specified in (2) may prepare and maintain its financial statements in accordance with IFRS for Small and Medium-Sized Entities (SMEs) where that standard applies to it.
      (2) Authorised Persons specified for the purposes of (1) are:
      (a) an Authorised Person in Category 3B, Category 3C or Category 4, which does not hold or control Client Assets or Insurance Monies; and
      (b) an Authorised Person in Category 4 which is not authorised under its Financial Services Permission to carry on the Regulated Activity of Operating a Multilateral Trading Facility or Organised Trading Facility.
      (3) The Regulator may by written notice direct that a particular Authorised Person or a specified class of Authorised Person specified in (2) must prepare and maintain financial statements in accordance with IFRS rather than IFRS for Small and Medium Sized Entities.
      (4) The Regulator may by written notice vary or revoke a direction under (3).
      (5) The procedures in Part 21 of the FSMR apply to a decision of the Regulator to give a direction under (3) to a particular Authorised Person.
      (6) If the Regulator decides to give a direction under (3) to a particular Authorised Person, the Authorised Person may refer the matter to the Regulatory Committee for review.

    • GEN 6.2.4

      Each Authorised Person and Recognised Body must:

      (a) if it is a Body Corporate, have its financial statements approved by the Directors and signed on their behalf by at least one of the Directors; or
      (b) if it is a Partnership, have its financial statements approved by the Partners and signed on their behalf by at least one of the Partners.