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Feb 1, 2019 · A reporting entity (or reporting unit) is an entity that voluntary chooses, or is required by law, to prepare general purpose financial statements. Entity meaning. The Conceptual Framework provides the following entity meaning [ Conceptual Framework 3.10 – 3.14 ]:
May 16, 2024 · A reporting entity is a business with an obligation to prepare external financial reports for the benefit of parties with an interest in its operations, such as suppliers and investors.
Definition of the Reporting Entity. This compiled Statement applies to annual periods beginning on or after 1 January 2020 but before 1 July 2021. Earlier application is permitted for annual periods beginning before 1 January 2020. It incorporates relevant amendments made up to and including 21 May 2019.
In the course of considering applying the revised Conceptual Framework for Financial Reporting (RCF) in Australia, the AASB identified an inconsistency in the definition of ‘reporting entity’ in the RCF and the widely used and understood Australian ‘reporting entity concept’.
Financial reports provide information about the reporting entity’s economic resources, claims against the reporting entity and the effects of transactions and other events and conditions that change those resources and claims.
Reporting entity. An entity that is required, or chooses, to prepare general purpose financial statements. IFRS S1. IFRS terms or definitions come from the Official Journal of the European Union (© European Union, https://eur-lex.europa.eu).
A reporting entity is an entity that chooses, or is required, to present general purpose financial statements (paragraph 9); A reporting entity need not be a legal entity but could comprise a portion of an entity, or two or more entities (paragraph 10);
Hence, a reporting entity includes anything that is an entity. (Although it could be argued that this makes the adjective reporting redundant, it can be helpful to use that adjective to distinguish the entity, to which a particular set of financial reports relates, from other entities.)
A reporting entity is a circumscribed area of economic activities that can be represented by general purpose financial reports that are useful to existing and potential investors, lenders, and other resource providers in making decisions about providing resources to the entity.
The Conceptual Framework is a body of interrelated objectives and fundamentals. The objectives identify the goals and purposes of financial reporting, and the fundamentals are the underlying concepts that help achieve those objectives.
