Obligation to Keep Accounts
Article 53
- (1)
- A merchant shall keep accounts in which it shall record the movements of its enterprise's property. Such movements shall be recorded in chronological order.
- (2)
- A merchant shall, through inventory performed within the time periods prescribed by the Law on Accountancy, establish the availability and value of the items of the assets and liabilities of its enterprise's property.
- (3)
- A merchant shall sum up the results of its commercial activities on the basis of the entries in its books and inventory, and prepare an annual financial statement and, where necessary, the relevant accounting notes. The annual financial statement shall be verified by a certified public accountant.
Continuity Of Opening and Closing Balance Sheet
Article 54
The opening balance sheet for each year shall correspond to the closing balance sheet for the preceding year. A balance sheet shall also be prepared when a merchant winds up its activities.
Admissibility as Evidence
Article 55
- (1)
- Regularly kept account books and entries therein shall be admissible as evidence between merchants for establishing commercial transactions.
- (2)
- Account books kept in violation of the provisions of this Law or the Law on Accountancy shall be inadmissible as evidence in favor of the party whose duty it is to keep them.
