Financial Reporting Requirements In The Cayman Islands

The Cayman Islands presents minimal substantive requirements for financial reporting, accounting and record keeping other than regulated entities and that represents one of its appeals as an offshore domicile for an entity undertaking any type of business. The following will discuss the key points regarding accounting, financial reporting and auditing in the Cayman Islands.

Unregulated Entities

The Companies Law addresses the subject of accounting records, financial statements, auditing and filing requirements in general for Cayman Islands companies. The law is brief in its discussion. The Law states only that Cayman companies must maintain "proper books of account." It makes no mention of specific accounting requirements nor does it mandate any recognized generally accepted accounting principles ("GAAP") to be used. The Law states, however, that proper books of account shall not be deemed to be kept "if there are not kept such books as are necessary to give a true and fair