Reporting Entity
From Open Risk Manual
Definition
Reporting Entity is any business entity that is engaging in Financial Reporting according to some Financial Reporting Standards.
- A reporting entity is an entity that is required, or chooses, to prepare Financial Statements
- A reporting entity can be a single entity or a portion of an entity or can comprise more than one entity (consolidated reporting)
- A reporting entity is typically but not necessarily a Legal Entity
Issues and Challenges
- Determining the "boundary" of a reporting entity can be difficult if the reporting entity is not a legal entity and/or does not comprise only legal entities linked by a parent-subsidiary relationship
