Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 294

294. (1) This section shall be complied with before a company's accounts are
made out under sections 292 and 293 in relation to a financial year.

(2) The directors shall take reasonable steps:

   (a)  to find out what has been done about writing off bad debts and making
        provision for doubtful debts; and

   (b)  to cause all known bad debts to be written off and adequate provision
        to be made for doubtful debts.

(3) The directors shall take reasonable steps to find out whether any current
assets, other than bad or doubtful debts, are unlikely to realise (whether
directly or indirectly) in the ordinary course of business their value as
shown in the company's accounting records and, if so, to cause:

   (a)  the value of those assets to be written down to an amount that they
        might be expected so to realise; or

   (b)  adequate provision to be made for the difference between their value
        as so shown and the amount that they might be expected so to realise.

(4) The directors shall take reasonable steps:

   (a)  to find out whether the value of any non-current asset is shown in the
        company's accounting records at an amount that, having regard to the
        asset's value to the company as a going concern, exceeds the amount
        that it would have been reasonable for the company to spend to acquire
        the asset as at the end of the financial year; and

   (b)  unless adequate provision for writing down the value of that asset is
        made-to cause to be included in the accounts such information and
        explanations as will prevent the accounts from being misleading
        because of the overstatement of the value of that asset.