Entity: Difference between revisions
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In financial reporting, the reporting entity is the reporting unit for which financial information is summarised and presented. | In financial reporting, the reporting entity is the reporting unit for which financial information is summarised and presented. | ||
Examples of financial reporting entities include individual companies and groups of companies. | |||
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4. ''Separately identifiable unit.'' | 4. ''Separately identifiable unit.'' | ||
More broadly, an entity may be any corporation, organisation or person that exists as a separately identifiable unit. | More broadly, an entity may be any corporation, organisation, partnership, trust or person that exists as a separately identifiable unit. | ||
Evidence of being 'separately identifiable' would include the ability to produce a meaningful and complete set of financial reporting information if it were required. | Evidence of being 'separately identifiable' would include the ability to produce a meaningful and complete set of financial reporting information if it were required. | ||
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* [[Equity]] | * [[Equity]] | ||
* [[Financial reporting]] | * [[Financial reporting]] | ||
* [[Group]] | |||
* [[Partnership]] | |||
* [[Primary statements]] | * [[Primary statements]] | ||
* [[Trust]] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Corporate_finance]] | [[Category:Corporate_finance]] | ||
Revision as of 12:23, 19 August 2021
1. Commercial and corporate finance.
In a commercial context, the business entity refers to the whole of the business undertaking, regardless of whether it is financed by equity alone or by a combination of equity and debt.
The Entity Value is therefore the total value of the Equity plus the Debt.
In this context the entity is also sometimes known as the Enterprise (and the entity value is also known as the Enterprise Value).
2. Financial reporting - accounting practices.
In financial reporting, the reporting entity is the reporting unit for which financial information is summarised and presented.
Examples of financial reporting entities include individual companies and groups of companies.
3. Tax.
A tax entity is a business unit which is subject to taxation.
For example a company or a branch of a company established in another country.
4. Separately identifiable unit.
More broadly, an entity may be any corporation, organisation, partnership, trust or person that exists as a separately identifiable unit.
Evidence of being 'separately identifiable' would include the ability to produce a meaningful and complete set of financial reporting information if it were required.
