The document outlines the process of financial reporting for financial institutions, emphasizing its role in documenting and communicating financial activities over time. Key objectives include transparency, regulatory compliance, risk management, and supporting stakeholder decision-making. It highlights the importance of accuracy in reporting to bolster customer confidence, meet regulatory standards, and evaluate institutional performance.

1. Financial
Reporting
for Financial
Institutions
Presented by : Bhoomika

2. Financial
Reportin
g
Financial reporting is the process of
documenting and communicating
financial activities and performance
over specific time periods, typically
on a quarterly or yearly basis.
Companies use financial reports to
organize accounting data and
report on current financial status.

3. • International Accounting Standards Board (IASB)
• Basel Committee on Banking Supervision (BCBS)
• Generally Accepted Accounting Principles (GAAP)
• The National Financial Reporting Authority (NFRA)
• Reserve Bank of India (RBI)
• Securities and Exchange Board of India (SEBI)
Regulatory Body

4. Objectives of
Financial
Reporting
• Transparency in Financial
Position
1
• Monitor & Evaluate
Performance
4
• Risk
Management
3
• Support Stakeholder Decision-
Making
2

5. • Transparency and
Accountability:
Financial reporting ensures that the
institution’s financial position and
performance are accurately disclosed
to stakeholders, including investors,
regulators, and customers.
It fosters trust and confidence by
providing a clear picture of financial
health.
Importance
• Regulatory Compliance:
Financial institutions operate in a
highly regulated environment.
Compliance with standards like IFRS,
Basel norms, and local laws is critical.
Accurate reporting helps meet
statutory obligations and avoid
penalties or sanctions.

6. • Decision-Making:
Provides management with crucial
data to make informed decisions on
lending, investments, risk
management, and operations.
Acts as a foundation for strategic
planning and growth initiatives.
Importance
• Risk Assessment:
Through detailed disclosures, financial
reports reveal key risks, such as credit
risk, market risk, and liquidity risk.
Stakeholders can assess the
institution’s resilience and risk
exposure.

7. • Performance Evaluation:
Enables tracking of profitability,
efficiency, and other performance
metrics.
Helps compare performance against
industry benchmarks and
competitors.
Importance
• Customer and Public Confidence:
Transparent financial reporting
reassures customers that the
institution is stable and trustworthy,
which is especially critical during
financial uncertainties or crises.

8. 1 Income Statement
2 Balance Sheet
3 Cash Flow Statement
4 Statement of Changes in Equity
Types of Financial
Reports

9. Users of Financial Reports
• Regulatory Authorities
• Investors and Shareholders
• Lenders and Creditors
• Employees
• Depositors
• Credit Rating Agencies
• Auditors
• Competitors
• Tax Authorities

10. Thank You