We provide professional accounting services and prepare financial statements in accordance with the International Financial Reporting Standards (IFRS) for companies under our administration, incorporated in various foreign jurisdictions.
We offer the following services:
- accounting for companies incorporated in the countries other than offshore jurisdictions: Latvia, the United Kingdom, Cyprus, Hong Kong, Singapore and others;
- accounting for offshore companies: British Virgin Islands, Panama, Belize, Seychelles and others;
- preparation and filing financial statements of foreign companies;
- organizing audit of financial statements (including engagement of licensed auditors and communication with them at all stages of the audit);
- preparation and filing tax returns;
- preparation and filing VAT returns;
- management accounting and preparation of management accounts;
- consulting clients on accounting and financial reporting issues.
Accounting records and financial statements
Primarily, the obligation to maintain accounting records and submit financial statements is provided by law for all companies registered in the countries other than offshore zones, including Latvia, Great Britain, Cyprus, Hong Kong and others.
However, the current legislation of “classic” offshore jurisdictions (British Virgin Islands, Panama, Belize, Seychelles and others), also contains a provision that a company must maintain “accounting records” and keep accounting (underlying) documents. Failure to fulfill this duty by companies entails considerable fines. The obligation to prepare full-fledged financial statements and to submit them to state authorities in such countries is not yet established.
Nevertheless, the accounting records and documents (namely contracts, invoices, bank statements, receipts, delivery notes, work/services acceptance certificates, books of account, etc.) should not only explain the transactions performed by the company and show its financial position, but also allow to prepare financial statements based on them where necessary (for example, if requested by a local regulator).
So for today proper recording of financial transactions is a duty common to both offshore companies and companies from jurisdictions with normal or high taxation.
Although the offshore zones impose no duty to file financial statements, the latter may be required even for a “classic” offshore company if its controlling person (beneficiary) is obliged to report such company’s profits in the country of his tax residence (due to controlled foreign companies’ (CFC) rules existing in a number of countries).
Financial statements may also be requested by company’s partners (contractors) within due diligence of a prospective contract with your company (e.g. a loan or share purchase agreement) or by a bank where the company intends to open an account.
The financial statements under IFRS usually contains:
- a statement of financial position;
- a statement of comprehensive income;
- a statement of changes in equity;
- a statement of cash flows; and
- notes (a summary of significant accounting policies and other explanatory information).
Audit of financial statements of foreign companies
Audit of financial statements of a foreign/offshore company may be required by law of the country of its incorporation or by its organizational documents. Besides this, a company may initiate audit of its financial statements voluntarily.
The audit report is prepared by independent licensed auditors (audit firms) in accordance with the requirements of local laws or the International Standards on Auditing (ISA).
Management accounting for foreign companies
Management accounting is necessary for company’s management to get the up-to-date accounting information for management decision-making as well as for efficient planning and control over the company’s business. The form and contents of management accounts сan differ and depend on management needs.
Management accounts, in contrast to financial statements, are usually intended for internal use by management of the company, although in some cases they may be required to show the financial figures of the company to supervisory authorities (for example, to prove CFC’s profits along with the company’s financial statements).
Value added tax (VAT) is the largest indirect tax imposed in many jurisdictions including the EU countries. If a company carries out VAT-taxable transactions (supply of goods or services, import) it must be registered as a VAT taxpayer and regularly file VAT returns with the tax authorities.
Our company has its own accounting service. That is why in most cases we maintain accounting records without intermediaries, using the resources of our Company’s accounting department.