This kind of mandated reporting also ensures transparency for investors and the general public, forming the backbone of a company’s efforts to provide accountability. Streamline your workflow with automated formatting, review processes, and maintain consistency with centralized data management. By following these key steps, companies can effectively navigate the process of statutory reporting, ensuring accuracy, compliance, and https://mymawe.com/time-off-calculator-free-pto-and-leave-balance/ transparency.

Understanding Statutory Accounts: A Guide for Businesses

Statutory reporting is the act of reporting financial information to regulatory bodies. For example, mandatory financial reporting to the Securities and Exchange Commission (SEC) counts as statutory reporting. The same holds true in other countries, as European authorities and Asia-Pacific (APAC) nations have their own requirements and regulations that must be followed. With the data collected, companies must then prepare the reports in the prescribed format specified by the regulatory bodies. This often involves adhering to specific templates, layouts, and reporting standards. Attention to detail is essential during this stage to ensure that the reports are clear, concise, and compliant with the required format.

How to comply with the complexities of interim tax reporting

This flexibility HOA Accounting demands a tailored accounting approach that aligns with the elected tax status, ensuring compliance with relevant tax codes and optimizing financial outcomes. For instance, an LLC taxed as a partnership would use Form 1065, while one electing corporate taxation would file Form 1120. Discover the essentials of statutory accounts, their components, and how they differ from management accounts for various business structures. Receive the latest financial reporting and accounting updates with our newsletters and more delivered to your inbox.

Corporate Tax Department Technology Report

Each country and region has its own laws and accounting standards that guide the reporting process. Organisations must follow these requirements to comply with the law and avoid penalties or legal issues. Berenberg, a high-level private bank in Europe, has partnered with regulatory technology firm Kaizen to meet its automated regulatory reporting assurance needs. The institution aims to utilize Kaizen’s ReportShield Accuracy Testing to ensure compliance with EU and UK MiFIR transaction reporting standards.

The Statutory Reporting Process

The process can be challenging due to redundant information, disconnected documents, and varying state regulations. However, technology plays a crucial role in streamlining statutory reporting, and companies like Workiva have helped insurance companies save significant time in report preparation. In order to achieve the intended results and adhere to regulatory standards, best practices must be used. This process is crucial for multinational corporations as it involves preparing and submitting financial statements to meet legal requirements in different jurisdictions. Engaging in statutory reporting helps corporations avoid hefty fines, maintain financial accuracy, and ensure timely submissions that align with local compliance standards.

These rules may differ across regions and industries, so statutory reporting it’s important to understand what applies to your organisation. Stakeholders, such as investors and customers, depend on accurate financial information to make decisions. Companies that ignore these obligations are viewed as risky and less reliable, making it difficult to secure loans, investments, and favourable credit terms.

• For publicly traded corporations, statutory reporting is crucial since it helps regulators ensure compliance while giving investors information about the business’s financial health.
• On the other hand, timely and accurate reports support financial forecasting, reinforce investor confidence, and boost valuation credibility – especially in volatile markets.
• Finally, the numbers are accompanied by narrative disclosures and footnotes that provide context.
• However, the integration between Trintech’s Cadency solution and the Workiva platform uniquely addresses this to greatly increase the visibility and confidence in the financial close and reporting process.
• This is a report that a company or organization must make public by law, especially its financial report.
• By adopting new technology and transforming how teams work, organizations can improve collaboration and communication.
• It entails providing important stakeholders, including external auditors, regulatory authorities, and investors, with reports and records that are legally necessary.

The insurance industry provides a classic example of reporting based on Statutory Accounting Principles. Insurance companies are required to file an extensive “Annual Statement” with state insurance departments and the National Association of Insurance Commissioners (NAIC). This report focuses heavily on the insurer’s solvency, the adequacy of its reserves to pay future claims, and its risk-based capital. We report on actions and discussions on conference calls and at the NAIC 2025 Spring meeting.

• This process is crucial for multinational corporations as it involves preparing and submitting financial statements to meet legal requirements in different jurisdictions.
• These pains come out most obviously at entity consolidation, when financial statement consolidation turns into an agonizing process of copy-pastes, reconciliations, and nervousness.
• Cost, scalability, ease of use, and integration capabilities should all be considered when choosing a technological solution for statutory reporting.
• For example, if your reports are late or irregular, your financial planning cycle is handicapped.
• Another challenge is managing redundant information presented in different, disconnected documents that must be updated individually across multiple entities.
• This allows you to use current data sets without manually entering data into multiple platforms.

Industry topic

Learn about the definition, statutory reporting’s importance, key components, and more. KPMG reports on actions taken and discussions held about ongoing projects on conference calls and at the Spring 2023 meeting of the National Association of Insurance Commissioners. We report on actions and discussions about ongoing projects on conference calls and at the NAIC 2023 Summer meeting. This helps financial teams anticipate future needs and comply with changing rules, reducing the risk of costly mistakes or penalties. These standards are subject to revisions and updates, as evidenced by the summaries provided by KPMG for 2022, 2023, 2024, and 2025. For instance, SSAP No. 43R clarified the reporting of residual tranches or interests at the lower of amortized cost or fair value.

• We report on actions and discussions on conference calls, and at the NAIC 2024 Summer meeting.
• Companies must follow UK GAAP or IFRS standards, depending on their size and type.
• This data can encompass a wide range of information, such as financial statements, tax returns, environmental data, and corporate governance reports.
• In fact, KPMG LLP was the first of the Big Four firms to organize itself along the same industry lines as clients.
• Moreover, it facilitates these institutions’ compliance with ethical and legal frameworks and mitigates potential non-compliance risks.

Statutory Reporting Overview for Finance Teams

• Under the International Financial Reporting Standards (IFRS), the balance sheet is referred to as the “statement of financial position,” emphasizing its role in depicting financial standing.
• Submit the prepared reports to the appropriate government agencies or regulatory bodies within the deadlines.
• Some current disrupters sparking GSR action include stat reporting technology platforms, cloud-based ERP platforms, and hybrid work models.
• Statutory reports offer a detailed view of an organisation’s financial status, helping stakeholders evaluate its stability, profitability, and liquidity.
• These factors make it extremely challenging to get all the necessary data together, validate it and complete those required reporting forms by deadline.
• From here, the preparation and review of statutory accounts is completed to provide statutory audit support.

The draft reports are scrutinized by the accounting department, senior management, and often an internal audit function to check for accuracy and compliance with all applicable statutory rules. Additionally, Thomson Reuters has teamed up with SAP to create a robust ESG reporting solution. The integration plans include combining Thomson Reuters ONESOURCE Statutory Reporting and SAP Sustainability Control Tower, enabling customers to prepare, gather, and file ESG data seamlessly within a unified solution.