Reporting Entity

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