What is a Reporting Entity?

A Reporting Entity is a Legal Entity within an organization that prepares its own Financial Statements as a stand-alone organization without consolidating into the Parent Entity.

As an example, Entity B is a Subsidiary of Entity A (the Parent). Entity B is required to prepare its own set of Financial Statements for bank reporting.

Often times, our retail customers have a separate Subsidiary legal entity for each location they have. However, these locations often do not require individual financial statements. Instead, they are consolidated with the parent and not denoted as a "Reporting Entity."