Volume 2 — Governance and ControlsGovernance and Controls © Copyright 2002, All rights reserved 43 Key Reports • Position reports. • P&L reports. • Limit compliance reports. • MTM reports. • Greek exposure reports. • VaR, EaR and CFaR reports. 1.5.2 Internal Financial Reporting Process Overview The back office should produce an individual balance sheet, income statement, and cash flow statement (financial reports) on a monthly basis. Objectives • Report all financial results of the company. • Ensure consistency of data. Best Practices and Controls • Each month, the back office should produce an individual balance sheet, income statement, and cash flow statement (financial reports) automatically from the accounting system. • Intercompany activity should be automatically eliminated. • Graphs and ratios should be compared from one period to the next to depict progress significant variances from one period to the next should be explained and documented in the system. • All historical information should be retained. • The middle or back office should produce reports of financial results. Key Reports • Balance sheet. • Income statement. • Cash flow statement. • P&L explanation reports.