What is financial reporting
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In the following, the term “financial report” stands for the accounting documents in accordance with Section 114 (2) WpHG or the half-yearly financial report pursuant to Section 115, if applicable in conjunction with Section 117 WpHG or the payment report or group payment report in accordance with section 116 of the WpHG.
As part of their periodic financial reporting, issuers in accordance with Sections 114 et seq. Of the WpHG continue to have to fulfill the following obligations:
- Publication of a notice from which it can be seen from which point in time and at which Internet address the financial report is publicly available, by means of forwarding to media for Europe-wide distribution
- Notification of the notice to the Federal Financial Supervisory Authority
- Making the financial report publicly available on the Internet
- Transmission of the notice and the respective financial report to the company register for storage.
According to Section 114 (2) WpHG, necessary components of annual financial reports are the annual financial statements, the management report, a declaration of compliance - often also referred to as a balance sheet oath - pursuant to Section 264 (2) sentence 3, Section 289 (1) sentence 5 of the Commercial Code (HGB) and If applicable, a certificate from the Chamber of Public Accountants in accordance with Section 134 (2a) of the Wirtschaftsprüferordnung (WPO) on the registration of the auditor or a confirmation from the Chamber of Public Accountants in accordance with Section 134 (4) sentence 8 of the WPO on the exemption from the obligation to register.
If a consolidated financial statement and a management report are to be prepared by a parent company, Section 114 WpHG is modified by Section 117 No. 1 WpHG so that the annual financial report, in addition to the above-mentioned components, also includes the audited, in accordance with Regulation (EC) No. . 1606/2002 consolidated financial statements, the group management report, a declaration corresponding to the requirements of Section 297, Paragraph 2, Clause 4, Section 315, Paragraph 1, Clause 6 of the German Commercial Code (HGB) and, if applicable, a certificate from the Chamber of Public Accountants in accordance with Section 134 (2a) of the WPO on the entry of the auditor or a confirmation of the Chamber of Public Accountants according to § 134 Paragraph 4 Clause 8 WPO regarding the exemption from the registration obligation.
In accordance with Section 115 (2) WpHG, necessary components of half-yearly financial reports are the abridged financial statements, the interim management report and a declaration corresponding to the requirements of Section 264 (2) sentence 3 and Section 289 (1) sentence 5 HGB.
If a parent company is obliged to prepare consolidated financial statements and a management report, Section 115 WpHG is amended by Section 117 No. 2 WpHG so that the legal representatives of the parent company prepare and issue the half-yearly financial report for the parent company and all of the subsidiaries to be included have to publish. A separate abbreviated financial statement or interim management report for the parent company does not have to be prepared.
Changes to Financial Reporting Requirements
Content of the changes to the financial reporting obligations of capital market-oriented companies due to the above-mentioned law for the implementation of the EU Transparency Directive Amendment Directive (2013/50 / EU):
- The previous obligation to prepare and publish interim reports from the management for share issuers no longer applies (Section 37x WpHGa.F.).
- A new addition is the general obligation for companies that are active in the extractive industry or the logging industry in primary forests to publish an annual payment report or group payment report. This obligation applies for the first time to a business year beginning after November 26, 2015. The payment report must be made available to the public no later than six months after the end of the reporting period (Section 116 WpHG).
- Section 1 (3) of the WpHG stipulates that the financial reporting obligations under Section 16 of the WpHG do not apply to issuers who have issued units or shares in open-ended investment funds.
- The legislature has now made it clear that announcements must be published within the same period in which the respective financial report is to be made available to the public: The corresponding is for the annual financial report or the accounting documents specified in Section 114 (2) of the WpHG Announcement must be published no later than four months after the end of the reporting period and before the annual financial report is made available to the public; for the payment report or group payment report, the corresponding notice is to be given no later than six months after the end of the reporting period and before the payment report or group payment report is made publicly available publish.
- In accordance with Section 114 (2) No. 1 lit. a) and Paragraph 2 No. 2 lit. a) WpHG, the annual financial report of a domestic issuer based in a member state of the European Union or in a state party to the Agreement on the European Economic Area has annual financial statements and to contain a management report that has been drawn up and audited in accordance with the rules applicable in the country in which it is located.
- Pursuant to section 114 (2) no.1 lit.b) and (2) no.2 lit.b) WpHG, the annual financial report of a domestic issuer based in a third country has the annual financial statements prepared and audited in accordance with the requirements of the Commercial Code and with an audit certificate the note about its refusal is provided as well as to contain the management report prepared and audited according to the requirements of the Commercial Code.
- The publication deadline for half-yearly financial reports has been extended from two to three months after the end of the reporting period.
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