Question

What four questions can be asked while examining the reporting requirements of a business? Discuss in 150–180 words

Answer 1

There can be different reporting requirements which can be applicable on a business depending on the nature of the business. So based on this we can ask the following questions while examining the reporting requirements of a business:-

1:-   What is Financial Reporting Framework applicable on the business i.e. for example if it is a company then the Companies Act would apply, if it is a Bank then Banking Regulations Act would apply, if it is Limited Liability Partnership(LLP) then LLP Act would apply. So we can check the reporting requirements according to the Acts applicable on the business.

2:-    If the business is carried in the form of a Company, we can see whether it is a listed company or not. If it is listed, the SEBI guidelines reporting would be applicable on the company. We can also ask whether CARO reporting is applicable on the company or not.

3:-   We can ask whether the business is covered under the transfer pricing provisions if it deals with associated enterprises in foreign countries. Transfer pricing reporting is to be done every year if the same is applicable on the business.

4:- We can ask whether the business is covered under the GST provisions. If so, we can ask whether monthly compliance is to be done or quarterly.

5:- We can ask whether the business comes under the provisions of State Provident fund and State insurance act. If so, monthly reporting is to be done under the same.

So the above questions can be asked while analyzing the reporting requirements of a business.