Pillar 1 and Primary statements: Difference between pages

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imported>Doug Williamson
(Add quote - source - The Treasurer - 2022 - Issue 4 - December 2022 - p40.)
 
imported>Doug Williamson
(Links ordering.)
 
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1.  ''Banking - regulation.''
''Financial reporting''.


(P1).
In financial reporting, primary statements are the main accounting statements required to be presented.  


Pillar 1 is the dimension of banking regulation which establishes minimum capital requirements based on market, credit and operational risks, and a minimum leverage ratio.


Additional capital requirements may be imposed by bank supervisors under Pillar 2.
These normally include statements of:


* Financial position (balance sheet).
* Comprehensive income (profit or loss).
* Changes in equity.
* Cash flows.


2.  ''Tax - profit shifting - Global Minimum Tax - Organisation for Economic Co-operation and Development (OECD).''


Pillar 1 of the OECD's tax reforms proposed in 2021 would give taxing rights over the residual profits of large multinational enterprises to the jurisdictions where the customers and users are located.
The primary statements are supported by ''notes'' providing additional and more detailed financial information.




:<span style="color:#4B0082">'''''Treasurers may need to assist in compliance with Pillar 1'''''</span>
The names of the primary financial statements are not normally mandatory, and they also differ according the accounting regime under which an entity is reporting.


:"Pillar 1 [is] a new nexus rule, which reallocates a business’s residual profits to the jurisdictions that generate value without necessarily having a physical presence.


:If Pillar 1 is introduced, treasurers may need to assist in compliance, setting up bank accounts and arranging funds transfers in order to meet these liabilities."
====Comprehensive income and profit or loss====
 
Comprehensive income includes both:
 
*Profit or loss for the period; and
 
*Other comprehensive income for the period.
 
 
Many entities report their profit or loss and other comprehensive income in two separate statements.
 
In these cases, there are FIVE primary financial statements: cash flows, changes in equity, comprehensive income, financial position, and profit or loss.
 
 
The statement of profit or loss is also known as the ''income statement''.


:''Graham Robinson, international tax and treasury partner PwC & Iain McDonald international tax and treasury director PwC - The Treasurer, Issue 4 2022 - December 2022, p40.''




== See also ==
== See also ==
 
* [[Entity]]
* [[Bank supervision]]
* [[FVTOCI]]
* [[Base erosion and profit shifting]] (BEPS)
* [[FVTPL]]
* [[Basel III]]
* [[IAS 1]]
* [[Capital adequacy]]
* [[Income statement]]
* [[Capital Conservation Buffer]]
* [[International Accounting Standards]]
* [[Corporation Tax]]
* [[Notes]]
* [[Countercyclical buffer]]
* [[Statement of cash flows]]
* [[Credit risk]]
* [[Statement of changes in equity]]
* [[Domestic Minimum Tax]]
* [[Statement of comprehensive income]]
* [[Effective tax rate]]  (ETR)
* [[Statement of financial position]]
* [[European Union]]
* [[Statement of profit or loss and other comprehensive income]]
* [[Financial reporting]]
* [[Global Anti-Base Erosion Rules]]  (GloBE]
* [[Gross domestic product]]  (GDP)
* [[Group]]
* [[G7]]
* [[Holdouts]]
* [[Income Inclusion Rule]]  (IIR)
* [[Income Tax]]
* [[Interest Rate Risk in the Banking Book]]
* [[Internal Capital Adequacy Assessment Process]]
* [[Leverage Ratio]]
* [[Market risk]]
* [[Multinational corporation/company]]
* [[Nexus rule]]
* [[Operational risk]]
* [[Organisation for Economic Co-operation and Development]] (OECD)
* [[Parent company]]
* [[Pillar 2]]
* [[Pillar 3]]
* [[PRA buffer]]
* [[Profit shifting]]
* [[Prudential Regulation Authority]]  (PRA)
* [[Regime]]
* [[Risk management]]
* [[Sister company]]
* [[Stress]]
* [[Subject To Tax Rule]]  (STTR)
* [[Supervisory Review and Evaluation Process]]  (SERP)
* [[Tax ]]
* [[Tax avoidance]]
* [[Tax compliance]]
* [[Tax evasion]]
* [[Tax haven]]
* [[Tax rate]]
* [[Three Pillars of Capital]]
* [[Top-up tax]]
* [[Transfer pricing]]
* [[Undertaxed Payments Rule]] (UTPR)


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]

Revision as of 11:07, 16 September 2020

Financial reporting.

In financial reporting, primary statements are the main accounting statements required to be presented.


These normally include statements of:

  • Financial position (balance sheet).
  • Comprehensive income (profit or loss).
  • Changes in equity.
  • Cash flows.


The primary statements are supported by notes providing additional and more detailed financial information.


The names of the primary financial statements are not normally mandatory, and they also differ according the accounting regime under which an entity is reporting.


Comprehensive income and profit or loss

Comprehensive income includes both:

  • Profit or loss for the period; and
  • Other comprehensive income for the period.


Many entities report their profit or loss and other comprehensive income in two separate statements.

In these cases, there are FIVE primary financial statements: cash flows, changes in equity, comprehensive income, financial position, and profit or loss.


The statement of profit or loss is also known as the income statement.


See also

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