Regulatory reporting: every definition you need to know

Regulatory reporting is complex, which is why we’ve put together an extensive list of the key terms essential for navigating global regulations.

Read through our list of definitions to expand your knowledge of regulatory reporting and improve your financial compliance.

O que são relatórios regulatórios?

Regulatory reporting is how companies demonstrate compliance with financial standards and regulations. As part of this process, they submit reports to relevant governing bodies for review.

Learn more about regulatory reporting and its importance in our blog.

Regulatory reporting definitions

Let’s dive into the key regulatory reporting terms so you have everything you need to get started with financial compliance.

Regulatory reporting

In finance, regulatory reporting involves compiling data into a structured report according to set guidelines and presenting it to regulatory authorities. This report serves as evidence of the company's adherence to compliance standards.

See how to get ahead with regulatory reporting in our blog.

ESG

Environmental, social, and governance (ESG) criteria encompass a set of standards used to evaluate the sustainability practices of companies and countries.

Discover the benefits of ESG reporting in our blog.

ESG software

ESG software is a solution that gathers, verifies, and organizes environmental, social, and governance (ESG) information. This data is used to create standardized reports for both internal and external distribution and ensures alignment with diverse ESG reporting requirements.

Explore the 11 best ESG software platforms in our blog.

ESG Reporting

ESG reporting involves companies disclosing their environmental, social, and governance data within financial reports. The goal of ESG reporting is to enhance transparency for investors and stakeholders while showcasing the legitimacy and progression of a company's ESG initiatives.

Understand the importance of ESG reports and regulations in our blog.

ESG regulations

ESG regulations establish guidelines for gathering, reporting, and revealing environmental, social, and governance data, providing a structure to assess a company's ecological and societal influence. These regulations can differ across nations and sectors, offering companies a method to present their comprehensive ESG effectiveness.

Using ESG data enhances openness and responsibility, empowering stakeholders, workers, clients, and investors to make knowledgeable judgments regarding a company's sustainability initiatives.

Learn more about ESG regulations in your country and industry in our blog.

Financial disclosure management

Financial disclosure management involves the preparation of specific financial reports that organizations compile to comply with legal or regulatory mandates.

For instance, publicly traded companies must produce Securities Exchange Commission (SEC) filings and quarterly earnings reports to offer transparency to existing and prospective investors. Similarly, private entities might need to produce financial statements adhering to accounting standards to secure financial backing.

See how financial disclosure management can save your team time in our blog.

XBRL

XBRL (eXtensible Business Reporting Language) is an internationally recognized standard for business reporting, facilitating the exchange of information in a format that is understood by finance professionals and financial technology alike.

With XBRL tagging, data is structured for seamless analysis by finance technology, particularly for regulatory reporting purposes. This streamlined approach simplifies digital reporting for issuers and enhances data aggregation and analytics capabilities for investors.

Uncover the impact that XBRL has on financial reporting in our blog.

XBRL tagging

XBRL tagging involves applying XBRL taxonomies to an organization's financial information for regulatory reporting purposes. Each tag is linked to a distinct data point within the financial statements, like revenues, assets, or liabilities. This method enables users of financial reports, including investors, analysts, and regulators, to readily interpret, analyze, and compare the data for informed decision-making.

Discover the efficiency of XBRL tagging in our blog.

Padrões IFRS

International Financial Reporting Standards (IFRS) is a collection of guidelines governing the creation of financial statements for publicly traded entities, with the goal of enhancing transparency, operational effectiveness, and responsibility.

These standards address a broad spectrum of subjects, including revenue recognition, inventory, property, plant, equipment on balance sheets, and diverse factors influencing income reporting for a company.

See why your team should care about IFRS accounting in our blog.

GAAP standards

Generally Accepted Accounting Principles (GAAP) are set, monitored, and revised by the Financial Accounting Standards Board (FASB) in the United States. All U.S. publicly traded companies must adhere to GAAP standards when preparing their financial statements, along with governmental bodies such as state and municipal entities.

While GAAP compliance is not mandatory for non-public enterprises, numerous financial institutions and lenders mandate GAAP-aligned financial statements before approving business loans. Ensuring adherence to GAAP standards aims to guarantee the completeness, uniformity, and comparability of financial reports. This practice enables investors, auditors, and internal stakeholders to assess financial statements effortlessly, track trends across periods, and make well-informed decisions based on empirical data.

Compare GAAP and IFRS accounting in our blog.

SEC (Securities and Exchange Commission)

The Securities and Exchange Commission (SEC) oversees the XBRL reporting process in the United States. While the Financial Accounting Standards Board (FASB) manages the standards, the SEC accepts the GAAP Financial Reporting Taxonomy annually. It also offers valuable resources and guidance to assist filers in preparing their financial statements in XBRL format.

Understand the SEC’s XBRL use cases in our blog.

FERC (Federal Energy Regulatory Commission)

The Federal Energy Regulatory Commission (FERC) oversees the XBRL reporting process in the energy sector. While regulators like the Financial Accounting Standards Board (FASB) handle the standards, FERC plays a crucial role by annually accepting specific taxonomies, offering guidance, and providing resources to help entities prepare their financial reports in XBRL format.

Explore the pivotal role of FERC in XBRL reporting in our blog.

ESEF

ESEF, which stands for European Single Electronic Format, represents a recent mandate that outlines the guidelines for certain companies listed on European stock exchanges regarding the preparation and submission of their annual financial reports. In essence, it standardizes the format of files and data tagging utilized by these entities to iXBRL (Inline eXtensible Business Reporting Language).

ESMA, the European Securities and Markets Authority, instituted this standard. As a regulatory entity, ESMA supervises the security markets and their participants, like the role of the Securities and Exchange Commission (SEC) in the United States.

Gain insights into how ESEF mandates standardized data tagging using iXBRL in our blog.

Pillar 2 Global Minimum Tax

The Pillar 2 Global Minimum Tax, part of the OECD's international tax reform efforts, aims to establish a minimum level of tax that multinational corporations must pay regardless of where they operate. This initiative addresses concerns about tax avoidance strategies and ensures that all countries can benefit from a fair share of tax revenue from these global entities.

Dive deeper into the evolution of international tax policies in our blog.

Conclusion: How to manage your regulatory reporting

With all the key regulatory reporting definitions at your fingertips, you can navigate financial compliance with confidence. Understanding these terms enhances your ability to interpret regulations accurately, helping you to avoid unnecessary risk.

Curious to learn more about regulatory reporting? Stay informed and compliant with Prophix One, a Financial Performance Platform.