The Tanzania Companies Act, 2002 requires every company to undertake accounting of the company affairs i.e., prepare financial statements in the form of balance sheet, profit and loss account for trading for profit companies (or income and expenditure for non-trading for profit companies) and cash flow statement.
The financial statements should be prepared using generally accepted accounting principles (IFRS in Tanzania).
These financial statements must be presented in company’s general meeting and should be preserved for six years. The first accounting period shall be for a period of more than six months but not more than eighteen months starting from the date of incorporation. Subsequently accounting period shall be successive periods of twelve months.
The Tanzania Companies Act, 2002, requires the auditor’s report to be presented to the company members before the company’s annual general meeting.