Financial reporting, dissolution of partnership, and other miscellaneous provisions - Financial reporting for large partnerships
60: Financial statements must be prepared
You could also call this:
"You must create special money reports for big partnerships"
You need to know about a rule for big partnerships. If you're in a big partnership, you and your partners have to make sure that special money reports are done. These reports are called financial statements. You have to do these reports within 5 months after the day your partnership uses to end its money year. This end day is called the balance date.
The financial statements need to follow rules that accountants and money experts agree on. These rules are called "generally accepted accounting practice". Once the statements are finished, two of the partners need to sign and date them. This shows that all the partners agree the statements are correct.
This rule is important because it helps keep track of the partnership's money and makes sure everyone knows what's going on with the finances.
"Big partnerships need someone to check their money records, unless they choose not to"
Part 4Financial reporting, dissolution of partnership, and other miscellaneous provisions Financial reporting for large partnerships
60Financial statements must be prepared
The partners of a large partnership must ensure that, within 5 months after the balance date of the partnership, financial statements that comply with generally accepted accounting practice are—
completed for the partnership and that balance date; and
dated and signed on behalf of the partners by 2 partners.
