Statutory Financial Statements & Why They’re Important

This unique capability allows financial and reporting professionals to view reconciled, report-read data, and the status of such data validation in the financial closing process. This also includes the ability to view tasks and data at the corporate reporting and legal entity level, which is required to facilitate statutory reporting requirements. Additionally, by tying statutory activities  to Cadency’s System of Controls™ (SOC) and Cadency’s System of Accounting Intelligence™ (SOAI), the most complete confidence is gained downstream to the reporting process. With this approach, organizations are left guessing on the details of the activities performed to fulfill their regulatory and statutory reporting requirements.

• In other words, the issue of harmonisation remains crucial and needs to be resolved.
• If you are a limited company director seeking professional assistance in preparing financial reports, then do get in touch with us at Ascott Blake.
• 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.
• With the data collected, companies must then prepare the reports in the prescribed format specified by the regulatory bodies.
• The most prominent of these are the Form 10-K, an annual report providing a comprehensive overview of the company’s business and financial condition, and the Form 10-Q, a less detailed quarterly report.

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And again, it reminds us of the important role of reporting for prudential frameworks, effective banking supervision and, ultimately, the objective of maintaining financial stability. For the near future, there are some specific financial reporting “challenges” in relation to the SSM and the ongoing comprehensive assessment. Before concluding, let me turn briefly to my “vision” for the future of financial and regulatory reporting. For instance, under GAAP, companies might defer revenue recognition to match the delivery of goods or services, potentially lowering taxable income in the short term. Statutory accounting, however, may necessitate more immediate recognition of revenue to ensure solvency, thereby increasing taxable income.

1. Accounting Standards and Principles for Financial Reporting: The Backbone of Transparency

• Along with regular our professional statutory accounts service and financial reports preparation, we can help with key accounting practices such as payroll, tax and Xero cloud accounting software.
• Financial reporting software enables finance teams in manufacturing organizations to automate their financial processes.
• Management reports contain information that will help you improve your processes, review the performance of staff, products and services and ultimately make decisions that will drive your future profitability.
• For instance, JGL Pharma, a global pharma firm, saved 50% of its market consolidation preparation time and put an end to version mismatches by transitioning from Excel to an automated planning solution.
• Moreover, it facilitates these institutions’ compliance with ethical and legal frameworks and mitigates potential non-compliance risks.

Deloitte can advise you on the path forward and provide end-to-end insights that fit your organisation’s unique needs. No matter which path your company chooses, transforming your global statutory reporting process will likely create opportunities for efficiencies. With each model’s core focus in governance and compliance, your organisation can develop a harmonised accounting process that centralises delivery and connects reporting platforms. Streamline your workflow with automated formatting and review processes, and maintain consistency with centralised data management. https://www.bookstime.com/ Choose flexibility with various operational delivery models and utilise translation features to prepare financial statements in English.

What Should Be Included in Hong Kong Statutory Accounts?

For many business owners, finding time to produce and analyze both financial and management reports can feel unnecessarily burdensome. Unless you naturally enjoy looking at numbers, this part of running your business is going to feel heavy going. Insurance companies prepare their financial statements under the guidelines of Statutory Accounting Principles. This financial information allows investors to understand whether insurers are capable of paying insurance claims. GAAP or Generally Accepted Accounting Principles refer to a set of accounting standards and principles issued by the FASB or Financial Accounting Standards Board. Statutory Accounting Principles or SAP refer to a set of accounting regulations issued by the NAIC or National Association of Insurance Commissioners for preparing the financial statements of an insurance firm.

Training and Skill Requirements for Accountants

The American Bar Association notes that there are over 150 federal regulators, with each one issuing hundreds of rules and guidelines every year. Delving into the vast gray areas of regulatory reporting can be a daunting task, and the consequences of misinterpretation can be severe. • An international set of standards for financial reporting, widely adopted by companies in over 160 countries.

Tax Implications of GAAP vs Statutory Accounting

The MD&A section offers insights from the company’s management about its financial performance, risks, and future outlook. Statutory accounts (also called ‘annual accounts’) are compiled by company directors to report on the company’s financial position. Producing statutory accounts is a legal requirement for companies, and they must be submitted Online Accounting to Companies House annually.

The most prominent of these are the Form 10-K, an annual report providing a comprehensive overview of the company’s business and statutory reporting financial condition, and the Form 10-Q, a less detailed quarterly report. The requirements for these reports are not uniform and change based on the company’s industry and the specific jurisdiction’s laws. For example, the reports for a publicly traded company differ from those for a private insurance company or a commercial bank. This mandated reporting ensures that entities are held accountable to legal standards, safeguarding the interests of stakeholders and the public.