SD-16.4 — Financial Reporting & Disclosure

Business Domain: BD-16 Enterprise Governance & Accountability (Cross-cutting — corporate) · Applies: BOTH

Purpose

Produces the firm’s own statutory financial statements and external disclosures — the management company’s, or the institution’s, annual report and accounts. SD-16.4 is the capability that closes the firm’s books and reports its own financial position to the outside world, to the applicable accounting standard, with an audit opinion. It is not fund accounting — the funds’ financial statements and NAV are SD-12.9 — and it is not the regulatory returns, which are SD-16.3. SD-16.4 produces the firm’s accounts; the firm’s books and the funds’ books are two separate ledgers with two separate audit opinions.

Service Operations

Run the financial-statement close — close the firm’s general ledger for the reporting period and prepare the statutory financial statements.
Prepare the annual report and accounts — produce the firm’s annual report, the financial statements and the directors’ and governance disclosures.
Prepare external disclosures — the firm’s other mandatory external financial disclosures, to the applicable accounting and disclosure standards.
Support the external audit — provide the audit evidence and manage the external-audit relationship to a clean opinion.
Govern the accounting policy — own the firm’s accounting policies and the judgements behind the financial statements.

Inputs and outputs

Inputs: the firm’s general ledger from SD-17.1 Corporate Accounting & Controllership and the management accounts from SD-17.2 Financial Planning & Analysis; the accounting standards; the external auditor’s requirements.
Outputs: the firm’s statutory financial statements, annual report and external disclosures — consumed by the firm’s owners, the regulators, the external auditor and the governing bodies.

Entities

Consumes: the corporate ledger from SD-17.1; E-01 Legal Entity (the reporting entities); the SD-17.2 firm’s general ledger from SD-17.1 Corporate Accounting & Controllership and the management accounts; E-37 ESG Compliance Result (from SD-10.9 — the product-level sustainability-compliance results the firm’s own sustainability-disclosure record consumes).
Owns: the firm’s statutory financial statements — a process artefact.

Standards

IFRS and the applicable national GAAP for the firm’s statutory accounts.
The audit standards (the ISAs) governing the external audit.
The corporate-disclosure and annual-report requirements of the firm’s jurisdiction and listing status.

Open extensions

The boundary with SD-12.9 — the firm’s accounts versus the funds’ accounts.
The accounting-policy sub-model.
The Service-Operation-level input/output contracts.