What is required by law from limited companies regarding their accounting?

Limited companies are required by national legislation to follow specific accounting practices and standards. This legal requirement ensures that companies maintain transparency and accountability in their financial reporting. National laws typically dictate the format and content of financial statements, mandate periodic audits, and enforce the timely submission of financial information to regulatory bodies.

While codes of corporate governance provide frameworks for best practices and ethical conduct within companies, they are not legally binding unless a company's jurisdiction enforces specific governance codes. International Accounting Standards guide consistency and comparability in financial reporting globally, but adherence to these standards is not universally mandated by law for all limited companies. Recommendations from auditors, although valuable for improving financial accuracy and compliance, are not requirements imposed by law.

Thus, national legislation is fundamental in establishing the legal framework within which limited companies must operate their accounting functions.