NAIC Annual Financial Reporting Model Regulation (Model Audit Rule, MDL-205) mdl205-s5-report-contents: The audited financial report presents statutory-basis statements, comparative, in annual statement form, with the required notes and reconciliation

The report presents financial position at year end and the year's operating results, cash flows and movements in capital and surplus on the statutory accounting practices prescribed or permitted by the domiciliary department. It must contain the accountant's report, a balance sheet of admitted assets, liabilities, capital and surplus, a statement of operations, a cash flow statement, a statement showing movements in capital and surplus, and notes that follow the NAIC Annual Statement Instructions and the Accounting Practices and Procedures Manual, including a reconciliation of any differences between the audited statements and the annual statement filed with the department with a written description of each difference. The statements use the groupings and language of the annual statement and present the prior year comparatively, except in the first year of filing.