sec.762Reporting unit to keep accurate financial records

### sec.762 Reporting unit to keep accurate financial records A reporting unit’s organisation must ensure the reporting unit— keeps financial records that correctly record and explain the transactions and financial position of the reporting unit, including the records prescribed by regulation; and keeps its financial records in a way that will enable a general purpose financial report to be prepared from the records under section 763 ; and keeps its financial records in a way that will enable the accounts of the reporting unit to be conveniently and properly audited under this division. If an organisation consists of 2 or more reporting units, the organisation must ensure the financial records for each of the reporting units are, as far as practicable, kept in a consistent way. Maximum penalty—100 penalty units. This would involve, for example, the adoption of consistent accounting policies and a common chart of accounts for all reporting units in the organisation. This requirement is subject to subsection (4) which allows reporting units to keep some records on a cash basis. An organisation’s financial records may, so far as they relate to the organisation’s receipts and payments, be kept on a cash basis or accrual basis, at the option of the organisation. If an organisation keeps its financial records on an accrual basis, it may keep the financial records for its membership subscriptions separately on a cash basis. An organisation must keep the financial records for 7 years after the completion of the transactions to which the records relate. Maximum penalty—100 penalty units. (sec.762-ssec.1) A reporting unit’s organisation must ensure the reporting unit— keeps financial records that correctly record and explain the transactions and financial position of the reporting unit, including the records prescribed by regulation; and keeps its financial records in a way that will enable a general purpose financial report to be prepared from the records under section 763 ; and keeps its financial records in a way that will enable the accounts of the reporting unit to be conveniently and properly audited under this division. (sec.762-ssec.2) If an organisation consists of 2 or more reporting units, the organisation must ensure the financial records for each of the reporting units are, as far as practicable, kept in a consistent way. Maximum penalty—100 penalty units. This would involve, for example, the adoption of consistent accounting policies and a common chart of accounts for all reporting units in the organisation. This requirement is subject to subsection (4) which allows reporting units to keep some records on a cash basis. (sec.762-ssec.3) An organisation’s financial records may, so far as they relate to the organisation’s receipts and payments, be kept on a cash basis or accrual basis, at the option of the organisation. (sec.762-ssec.4) If an organisation keeps its financial records on an accrual basis, it may keep the financial records for its membership subscriptions separately on a cash basis. (sec.762-ssec.5) An organisation must keep the financial records for 7 years after the completion of the transactions to which the records relate. Maximum penalty—100 penalty units. - (a) keeps financial records that correctly record and explain the transactions and financial position of the reporting unit, including the records prescribed by regulation; and - (b) keeps its financial records in a way that will enable a general purpose financial report to be prepared from the records under section 763 ; and - (c) keeps its financial records in a way that will enable the accounts of the reporting unit to be conveniently and properly audited under this division. - 1 This would involve, for example, the adoption of consistent accounting policies and a common chart of accounts for all reporting units in the organisation. - 2 This requirement is subject to subsection (4) which allows reporting units to keep some records on a cash basis.