It is held to inform the shareholders about the formation of the company, issue of shares, public subscription towards its share capital, the properties acquired, business prospects and so on. Publicly held companies are required to file additional reports with the Securities and Exchange Commission. Moreover, bookkeeping neglecting statutory reporting compromises an organisation’s credibility and trustworthiness. Lenders and investors view adherence to statutory reporting obligations as a key indicator of an organisation’s governance and transparency practices. Companies that disregard these requirements are often perceived as higher risk and less trustworthy, making it challenging to obtain loans, investments, and favourable credit terms. Regulatory reporting refers to the process of collecting, maintaining, and analyzing details of a company’s or financial institution’s operational and financial activities.
How HSP Group Can Help with Statutory Reporting
- It is regulated by the National Association of Insurance Commissioners (NAIC) and requires insurance companies to prepare quarterly and annual financial statements, adhering to statutory accounting principles (SAP).
- Additionally, an Appointed Actuary must submit a formal opinion on the adequacy of the company’s reserves.
- This helps to deliver accuracy and efficiency in over 150 jurisdictions, plus provide analytics that provide insights and real-time dashboards, showing your compliance status around the world.
- Statutory audit is nothing but a financial audit which is to be performed by every functioning company irrespective of the size of the business.
- 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.
- Teams typically prepare statutory quarterly and annual financial statements, with the Annual Statement due by March 1 and the statutory basis audited financial statements generally due on June 1.
With active links to your ERP or FP&A Remote Bookkeeping software, reports always show the latest numbers. This minimizes back-and-forth with auditors and enhances confidence in disclosures, particularly for multi-entity consolidations. Statutory reporting demands the aggregation of data from multiple sources to generate accurate reports. This becomes challenging for organizations without a robust ERP system in place, or their individual systems do not integrate well with each other. With its advanced cloud-based platform, ONESOURCE Statutory Reporting ensures compliance across over 45 jurisdictions, supports multiple local languages, and offers country-specific reporting templates.
Complexity of Laws and Regulations
- Thomson Reuters and SAP are partnering to streamline ESG compliance reporting, addressing the EU CSRD (effective January 2025) and other global standards.
- With additional data being reported, the public is now aware of more of the internal operations that used to be behind the curtain.
- Statutory reporting doesn’t exist in a vacuum it directly affects every core financial operation in the business.
- Our deep knowledge in local accounting, reporting, and risk management can help you transform your statutory reporting functions.
- For all these reasons, it’s critical that companies have a dependable strategy in place to ensure they are keeping up with all their obligations in the most accurate and efficient manner.
- For example, Workiva has helped insurance companies streamline their statutory reporting processes, resulting in significant time savings in report preparation.
The framework is global, but has country-specific content that can be plugged-in to meet the local requirements. This is clear to users who can run the same process for all countries, and produce trustworthy e-documents or statutory reports from the system of record, with no offline manipulations. With this approach, organizations are left guessing on the details of the activities performed to fulfill their regulatory and statutory reporting requirements. This method also creates both inefficiencies and additional risks in the process, and this risk grows with each legal entity involved in the corporate structure.
Regulatory Reporting Vs. Statutory Reporting
By integrating such information, statutory reports go beyond financial performance, demonstrating a company’s dedication to environmental, social, and governance (ESG) impact. 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.
Common Challenges in Statutory Reporting
The work of statutory reporting teams is highly detail-oriented and involves gathering data from various entities. One of the challenges they face is ensuring consistency across annual statements, audited financials, and MD&A. Another challenge is managing redundant information presented in different, disconnected documents that must be updated individually across multiple entities. In the insurance industry, statutory reporting teams play https://www.bookstime.com/articles/statutory-reporting a crucial role in conveying an insurance company’s ability to pay customers’ claims. This means that their work is focused on a company’s financial health, and they must ensure compliance with regulations set by governing bodies such as the National Association of Insurance Commissioners (NAIC).
- With the advent of technology, the process of statutory reporting has become more efficient and cost-effective.
- Deloitte can help bring your statutory reporting function into the future with more consistency, a better control framework, and more efficient processes.
- Insurance companies submit their annual statements through the NAIC’s electronic filing portal, and banks use the FFIEC’s electronic systems to file their Call Reports.
- An independent auditor reviews the financial statements and provides an opinion on their accuracy and compliance with accounting standards.
- Create consistency across your process with centralized data capture and standardized sets of accounts, accessible from any location.
The purpose is to access and ensure compliance with law and regulations, and maintain transparency to investors, shareholders, and the general public. But instead of ingredients, statutory reporting involves financial statements, tax returns, and other important documents that reveal the overall health and performance of your company. By following these key steps, companies can effectively navigate the process of statutory reporting, ensuring accuracy, compliance, and transparency.
Global Statuary Reporting
The purpose is to provide transparency and demonstrate solvency, which differs from general-purpose financial reports designed for investors. The Workiva Platform is an industry-leading technology that can operate as a holistic platform for ESG reporting, SEC reporting, statutory reporting, XBRL tagging, financial reporting compliance and more. Our global delivery model, centered around delivery centers of excellence across the world and leveraging local countries for region-specific knowledge, allows for an efficient delivery of outsourcing services.
- These tools also facilitate scenario analysis, allowing users to model the impact of economic changes or regulatory updates on financial statements, providing strategic insights into risks and opportunities.
- To rectify these challenges, Workiva and Trintech have partnered together to provide the deepest level of visibility and accuracy to accounting professionals.
- Through annual returns company’s ownership structure, directors and share capital can be determined accurately.
- This flexibility enables companies to focus on key performance indicators (KPIs) relevant to their strategic objectives.
Why choose Statutory Reporting software
Without the statutory reporting process, the company may be blindsided and unable to prepare a thoughtful response before the outcry begins. In some cases, ESG-related data requirements make the need for transparent and accurate reporting all the more important. Corporations that operate in multiple countries must walk a challenging tightrope, meeting various statutory requirements across various jurisdictions. These may include ESMA guidelines followed in many European nations, APAC requirements or those in emerging markets. In some instances, countries may demand local entity accounts that are kept separate from consolidated group statements. At the same time, companies must be careful they translate their records accurately, including proper currency conversions.