105 / 266
105
2014 Registration Document
Corporate governance
3
Internal control
3.6.2.2
Management of the accounting
and finance organisation
◗
Organisation of the financial function
The financial function is mainly based on a two-level organization:
■
the Group Financial Control department defines the IFRS accounting
principles applicable to Carrefour and provides leadership and
oversight of the production of Consolidated Financial Statements
and management reports. This department includes a Consolidation
department and a Performance Analysis department:
■
the Consolidation department monitors standards, defines
the Group accounting doctrine (IFRS accounting principles
applicable to Carrefour), produces and explains the Consolidated
Financial Statements and prepares the consolidated accounting
and financial information, and is the direct link to the Finance
departments at country level,
■
the Performance Analysis department aggregates and analyses
both prospective and retrospective management reports. It
requests explanations from the country-level Finance departments
and/or the regional Finance departments, and alerts General
Management to key issues and any potential impact;
■
the country-level Finance departments are responsible, under the
functional supervision of the Finance directors for each region, for
production and control of the country-level company and Consolidated
Financial Statements. They are also responsible for deploying an
internal-control systemwithin their scope that is adapted to their specific
challenges and risks, taking into account the Group’s recommendations
and directives. Management control and merchandise management
control at country level also fall under their responsibility.
The country/business administrator accounting function is handled by
centralized teams in each country, under the supervision of the country-
level finance director. These teams belong to the Finance line and are
led by the Group Finance department.
The Group executive director for finance appoints the country-level
Finance directors.
Regional Finance directors are mainly charged with improving
dissemination of the culture and principles of financial control and ensuring
their proper application.
◗
Accounting principles
Group accounting principles are specified in a regularly updated
document that is communicated to all those involved in the process.
The IFRS accounting principles applicable to Carrefour are reviewed
twice per year, before the close of the half-yearly Financial Statements and
before the balance sheet date. They are defined by the Standards director
belong to the Consolidation department and presented to the Statutory
Auditors for comment. Significant changes, additions or withdrawals are
presented to the Accounts and Internal Audit Committee.
The most recent version is communicated to the country-level Finance
directors before each consolidation.
The IFRS accounting principles applicable to Carrefour are incumbent
upon the country-level Finance departments, which have no leeway
in the interpretation or application of such principles. Should queries
arise, country-level Finance departments are instructed to consult the
Consolidation department, which alone can provide interpretations and
clarifications.
A meeting of country-level Finance directors is held once per year, during
which new changes to the IFRS accounting principles applicable to
Carrefour and any problems with application that have been encountered
since the last meeting are discussed.
The Standards department belong to the Consolidation department to
handle technical monitoring of IFRS standards, organize and manage the
process of updating Group accounting principles in connection with the
countries, analyze technical issues raised within the Group and ensure
that Carrefour is represented within professional organizations that deal
with accounting standards.
◗
Tools and operating methods
In recent years, the Group has standardized the accounting systems used
in the various countries. Specifically, this has led to the implementation
of an organizational model that includes the establishment of shared
service centers (for the processing and payment of invoices involving
merchandise, fixed assets, general expenses and payroll), thus
standardizing and documenting procedures in the various countries
and ensuring the appropriate separation of tasks. Operating methods
are made available to all users.
Each country implements tools to address its specific consolidation
needs. A new tool was developed and implemented at the end of the
year at Group level to detail, make reliable and facilitate transmission of
data, controls and consolidation operations.
Accounting and financial information systems are subject to the same
requirements as all security systems.
◗
Consolidation process and principal controls
Each country is responsible for consolidating Financial Statements at
its own level. Consolidation at this level is provided by financial teams
in each country.
The Group Consolidation department team composed by seven
persons leads this process and is responsible for producing the Group’s
Consolidated Financial Statements. Responsibilities have been defined
by country, as have cross-functional analysis responsibilities within the
Group team. Since 2008, consolidation has occurred in each quarter.
Only the half-yearly and annual Consolidated Financial Statements are
subject to an external audit and published. The Group uses identical data
and regional breakdowns for its management reports and Consolidated
Financial Statements.
Subsidiaries prepare their own statutory accounts and Consolidated
Financial Statements converted into euros for their region. The Finance
directors in each country can refer to a list of standard controls prepared
by the Group’s Consolidation department staff that are to be performed
on these Consolidated Financial Statements.