US GAAP reporting pack reviews
⇒ US GAAP Reporting Pack Reviews refer to the review process of financial reporting packages prepared by subsidiaries, divisions, or business units before they are consolidated at the group level under US Generally Accepted Accounting Principles (US GAAP).
⇒ These reporting packs serve as the foundation for group-level consolidation, and reviewing them is critical to ensure accuracy, compliance, and completeness.
What is a US GAAP Reporting Pack?
A reporting pack is a standardized template or workbook submitted by each reporting entity (subsidiary, branch, etc.) to the parent company. It includes:
- Trial balances
- US GAAP adjustments (vs local GAAP)
- Disclosures
- Notes and reconciliations
- Management commentary
Key Components of the Review Process
| Review Area | Details |
|---|---|
|
Trial Balance Consistency |
Ensure TB ties to local books, mapped to US GAAP chart of accounts
|
|
Conversion Adjustments |
Review all local GAAP to US GAAP adjustments (e.g., revenue recognition, leases, impairment)
|
|
Intercompany Balances |
Validate intercompany transactions and confirm balances for elimination |
|
Disclosures |
Review narrative disclosures for completeness and relevance under US GAAP |
|
Reconciliations |
Check supporting schedules for:
|
Best Practices
- Use a standard checklist for each reporting pack review.
- Set materiality thresholds for detailed analysis.
- Ensure mapping consistency across all subsidiaries.
- Perform trend analysis and variance explanations for key accounts.
- Involve subject matter experts for complex areas like leases (ASC 842) or revenue (ASC 606).
- Review disclosure completeness against prior periods.
- Document all review notes and feedback sent back to local teams.
- Automate parts of the review (e.g., Excel validations, macros) where possible.
Documentation Output
After reviewing, prepare:
- Review memo summarizing findings
- Checklist completion status
- Query log for unresolved or follow-up items
- Sign-off confirmation from reviewer and local preparer