Month: July 2024

Deloitte AG is an affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). Please see About Deloitte for a more detailed description of DTTL and its member firms. Constantly changing regulatory frameworks requires companies to keep up with frequent changes, locally and globally. The complexity of these compliance requirements, across multiple jurisdictions, compounds the need for accuracy and timeliness, which can be a huge draw on resources, not to mention the risk of noncompliance. It is unrealistic to think that an organization can produce certified financials for the reporting process by only looking at the controls structure around their reconciliation process.

• With additional data being reported, the public is now aware of more of the internal operations that used to be behind the curtain.
• Determining whether to outsource statutory reporting operations at a particular location or to keep it in-house depends on an organisation’s unique priorities and needs.
• Corporations that operate in multiple countries must walk a challenging tightrope, meeting various statutory requirements across various jurisdictions.
• With their siloed spreadsheet-based reporting stack, teams invariably accumulate a reconciliation backlog and repeat work.
• Failure to comply with these requirements exposes the entity to significant financial penalties and legal sanctions.

Statutory reporting: Possible solutions for the modern world

To ensure compliance with statutory reporting obligations, insurance companies should implement a structured reporting framework. This framework should clearly define roles and responsibilities, establishing designated personnel to oversee the compliance process. When it comes to statutory reporting in the UK, businesses must follow specific rules to ensure compliance with legal requirements. This process involves submitting accurate financial information to government bodies within set deadlines.

Germany – Mandatory Management Report for Audited Companies

By signing below, the parties acknowledge and agree to abide by the statutory reporting requirements outlined in this contract. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & statutory reporting Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

December 15, 2025Top 7 Benefits of Automated Disclosure Management for Enterprises

The Annual Statement is typically due by March 1, and the statutory basis audited financial statements are generally due by June 1. Failing to meet statutory reporting requirements carries significant and escalating penalties, ranging from civil monetary fines to severe criminal charges for deliberate misconduct. The Internal Revenue Service, for example, imposes a failure-to-file penalty for late corporate tax returns (Form 1120). Statutory reporting is essential for businesses operating globally to comply with diverse legal reporting requirements across different countries. The Statutory Reporting framework provides a comprehensive solution to manage these complex reporting needs efficiently.

• Additionally, insurance companies are tasked with ongoing reporting duties that may include disclosures about risk exposure, claims reserves, and underwriting practices.
• Many organisations have handled local financial statements in a decentralised and manual way, leading to a lack of visibility, inconsistency, and higher risk.
• They must also ensure that their operations are aligned with the regulatory frameworks set forth by government agencies, thus facilitating a safer insurance market.
• Insurance companies should implement regular training sessions and workshops to educate employees about these obligations.
• Statutory reporting types include financial reports, tax filings, regulatory disclosures,etc, to meet legal requirements.

Evolving regulatory landscape

It’s a written statement that is sworn to be true and accurate and verifies compliance with certain rules and regulations. For instance, a company may be required to Statement of Comprehensive Income submit statutory declarations about compliance with environmental or labor laws. With increased visibility across the global stat landscape and automation of processes, there can be greater accountability and reduced reporting process times.

Keywords

• For publicly traded companies, the SEC can impose severe regulatory sanctions for material misstatements or late filings.
• For instance, the healthcare industry must adhere to the privacy and security standards of the Health Insurance Portability and Accountability Act (HIPAA), which includes certain mandatory breach reporting.
• It’s a written statement that is sworn to be true and accurate and verifies compliance with certain rules and regulations.
• Organisations must follow these requirements to comply with the law and avoid penalties or legal issues.
• These reports are critical for assessing the company’s financial health and solvency.
• These disclosures enhance transparency, enabling stakeholders to evaluate an organization’s risk management capabilities and adherence to regulatory frameworks.
• With this knowledge, organizations can learn how to streamline their regulatory frameworks and move toward a more centralized and efficient compliance strategy.

It is difficult for businesses to maintain accurate and compliant statutory reports when they rely on manual methods. Tax calculations, audits and penalties, as well as fines and penalties, can all result in revenue losses. The next step is to collect and organise the necessary financial and non-financial data to be included in the reports. This data can encompass a wide range of information, such as financial statements, tax returns, environmental data, and corporate governance reports. It’s crucial to ensure accuracy and completeness when gathering this data, as it forms the foundation of the statutory reports.

An alternative approach to statutory reporting

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. Publicly traded companies are primarily subject to financial reporting requirements enforced by the Securities and Exchange Commission (SEC). These mandates require the periodic disclosure of financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP). The cornerstone reports are the annual Form 10-K and the quarterly Form 10-Q, which provide a comprehensive view of the entity’s financial health, operations, and risk normal balance factors.