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Having multiple sets of books is somewhat similar to three people driving a car where one person’s job is to steer the car straight, a second person is in charge of right turns, and a third handles the left turns. Except in some special situations, keeping multiple sets of books is not recommended. More generally, using non-accountants to do your accounting does not typically result in the best outcomes for your organization if your goal is to have timely accurate financial reports.
No, on record just one. Inside as many as you want.
In my opinion. Yes. Usually the companies which managed great amount of economical resources and huge cash flow have two books of account, the official books and other the non-official books. Is it legal? No.
A company can maintain two sets of books of accounts but, at least in Egypt, this behavior is illegal.
Having multiple sets of books is somewhat similar to three people driving a car where one person’s job is to steer the car straight, a second person is in charge of right turns, and a third handles the left turns
Yes they can mantain more than one books one accounts. they can mantain one as per local rules or other can be as IFRS or GAAP, but some organisation mantain2 books of accounts for the follwing purposes;
1. Internal Purpose
2. Audit purpose/ Tax purpose
They mantain two books of accounts to avois tax that is not legal.
Yes, it is possible to do that, however it isn't legal. In most case, companies do that sort of practice, try to evade taxes or hide lossess/profits .
To maintain a set of books to comply with the local laws as per one standard(for eg.Ind as) and to maintain another set of books to comply with the stanadards and laws of country in which the holding company is situated is possible .This should be with regard to the accounting treatment of the transctions to comply with the respectyive laws and standards only.Basic nature of transactions should be the same.
In India for eg., following of two accounting periods are possible. One as per Tax law(April to march) and the other as per the company law or otherwise(calendar year)..So modified book has become necessary..
Some companies need to report results in more than one standard. For example, they may report in accordance with local standards for statutory purposes and in accordance with IFRS or GAAP for group reporting purposes. In such cases, they can have more than one accounting records. However, if the system allows, the company can have the standard records of transactions, then add one adjustment period to convert one standard to another (e.g. period14).
in addition to above discussion
yes can possible but
It is
One of the dirty little secrets of finance is that publicly traded corporations maintain two different sets of “books,” or accounting ledgers.
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