2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino
2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino
2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino
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CORPORATE GOVERNANCEChairman’s Report5Group Accounting and Group Financial Control have producedand circulated a Financial Reporting Guide designed to ensure thatinformation reported is reliable and consistent throughout the Group.This guide describes Group accounting policies, consolidationprinciples, and consolidation adjustments and entries, as well asmanagement accounting principles and the accounting treatmentof complex transactions. All users of the Group’s financial reportingsystem have received a copy of the guide.In addition, a compliance watchdog unit has been set up to assessand anticipate changes in accounting regulations that may impactthe Group’s accounting standards, particularly IFRSs. Any regulatorydevelopments that have an impact on the Group’s accountingprocedures are explained in memos. Similar arrangements are in placefor tax matters. Each business unit, together with the Group Taxationdepartment for French units, monitors tax regulations to identify anydevelopments that could affect the Group’s taxable results. All relevantinformation is sent to employees responsible for their application.• ToolsThe Group’s information systems are described in section 5.3.2 ofthis report.Each business unit has a team responsible for ensuring that localinformation systems used for financial reporting conform to localregulations and accounting standards.IFRS-compliant accounting and financial data, adjusted to complywith Group standards, are reported by the business units through asingle consolidation and financial reporting software package. TheGroup’s reporting system has a dedicated administration unit.Financial reporting process• Identifi cation of risks affectingthe fi nancial reporting processThe Management of each business unit is responsible for identifyingrisks affecting the financial reporting process. Duties in the upstreamaccounting production process are segregated to prevent fraud andaccounting and financial regularities. Control activities appropriate tothe level of risk are implemented.In early 2011, a weakness in the process for recording benefitsnegotiated with suppliers was identified in a subsidiary that accountsfor less than 1.5% of Group revenue.The Group has already implemented an action plan to remedy theinitial irregularities identified and the accounting consequences wererecognised in the <strong>2010</strong> financial statements.Additional investigations are currently ongoing to identify the actionsrequired to improve the subsidiary’s internal control system.• Control activities aimed at ensuringthe reliability of published accountingand fi nancial informationPreparation and consolidation of financial and accountinginformationThe accounting production processes are organised with a view toproviding high quality, reliable published accounting and financialinformation. Against a background of shorter deadlines, the accountsare now closed on an intermediate basis to preserve informationreliability.<strong>Mo</strong>st consolidation adjustments are made by the business units.Group Accounting and Group Financial Control arrange training for thebusiness units in how to use the reporting system and the FinancialReporting Guide, to guarantee high quality data and reliable financialand accounting information.The system checks data consistency through automatic controls andthrough double checking of both local and consolidated data.Group Accounting monitors and checks changes in percentageownership of subsidiaries and associates. It is responsible for applyingthe appropriate consolidation treatment (scope of consolidation,change of consolidation method, etc.).As required by law, <strong>Casino</strong>, Guichard-Perrachon has two StatutoryAuditors, appointed in <strong>2010</strong>. Their network of local audit firms may alsobe involved in auditing accounting information, including consolidationadjustments, produced by various Group subsidiaries. Their dutiesinclude verifying that the annual financial statements are prepared inaccordance with generally accepted accounting principles and givea true and fair view of the Group’s results of operations for the yearand its financial position and net assets at the year-end.The Group Accounting department acts as the interface withthe external auditors of the Group’s various entities. The Group’sStatutory Auditors are appointed through a competitive tenderprocedure arranged and overseen by the Audit Committee in linewith the recommendations made in the AFEP-MEDEF corporategovernance code.Management of external financial informationThe Investor Relations department is in charge of communicatingfinancial information to the financial community (analysts, investors,etc.).Financial information is validated by the Financial Control departmentprior to release.The Board of Directors is also presented with information concerningthe publication of results or acquisitions and mergers, and may makecomments and proposals. Financial news releases are, in addition,submitted to the Statutory Auditors for comment prior to issue.Financial information is disclosed to the markets through the followingcommunication channels:■■■■■■■media releases;conference calls for quarterly releases of sales figures;annual and interim results presentations;presentations to financial analysts and investors, including roadshows organised in France and abroad;Annual General Meetings;annual reports, business reviews and sustainable developmentreports;the Group’s corporate website.Group Investor Relations is also involved in monitoring financialinformation drawn up by listed majority-controlled subsidiaries andensures consistency between the various communication mediaused by the Group.ConclusionThe <strong>Casino</strong> Group takes a continuous progress approach to its riskmanagement and internal control system to promote the systematicspread of best internal control practices.The Group’s objective is to pursue and extend the implementationof adequate processes to further enrich the existing systems. Thediversity of the Group’s business operations and geographical scopedemands ongoing monitoring of risk management and internal controlprocesses to encourage even greater standardisation.Registration Document <strong>2010</strong> | <strong>Casino</strong> Group191