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Corporate governance
Internal control
Consolidation process and principal controls
Oversight of the internal-control system
Each country is responsible for consolidating financial statements at
Oversight of the internal-control system is mainly based on:
its own level. Consolidation at this level is provided by financial teams
a self-assessment process for the application and oversight of the
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in each country.
main regulations defined by the Group concerning internal
The Group consolidation department team leads this process and is
accounting and financial controls. Action plans, defined at country
responsible for producing the Group’s Consolidated Financial
level where necessary and subject to monitoring;
Statements. Responsibilities have been defined by country, as have
in-country actions by the Group internal audit department. The
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cross-functional analysis responsibilities within the Group team. Since
internal audit plan incorporates missions to review internal
2008, consolidation has occurred in each month since 2015 (quarterly
accounting and financial controls.
before). Only the half-yearly and annual Consolidated Financial
Oversight also incorporates the assessment of information provided by
Statements are subject to an external audit and published. The Group
the Statutory Auditors as part of their in-country operations. The
uses identical tools, data and regional breakdowns for its management
country-level Finance directors systematically provide the Group
reports and Consolidated Financial Statements.
onsolidation department with summaries of actions and letters of
Subsidiaries prepare their own statutory accounts and Consolidated recommendation from the Statutory Auditors. It oversees
Financial Statements converted into euros for their region. The implementation of its recommendations.
financial department in each country are based in particular on
The entire process is regularly presented to the Accounts Committee.
controls in place in the new consolidation tool. Countries have had
When significant shortcomings are detected in a country’s
access to a benchmark for expected controls during the production of
internal-control system, the committee will have present
accounting and financial information and the consolidation process.
developments in action plans on a quarterly basis.
The Consolidation department checks for consistency and performs a
At each statement, the Group internal audit department receives
reconciliation at the close of each month.
letters of affirmation, signed by the country executive director and
The main options and accounting estimates are subject to review by
Country finance director, certifying that the consolidation reporting
the Group and the country-level Finance directors, including during
packages are fair and were prepared in accordance with the IFRS
meetings for account closing options, organised before account
accounting principles applied by Carrefour.
closings at Group and country level in cooperation with external
Control over financial
3.6.2.3
auditors.
Between account closings, country visits by the Consolidation
communications
department provide opportunities to improve the process at country
level by promoting understanding and dissemination of the Group’s
Role and mission of financial communications
accounting principles and addressing specific issues within the various
countries. If necessary, inspections can lead to recommendations
aimed at improving the country’s consolidation procedures.
The objective of financial communications is to provide information:
Since 2012, the Group consolidation department set up the
on a continuous basis: quality information must be provided
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“hard-close” process at the end of September so as to anticipate, as far
regularly over time. This is essential to the Group’s credibility and to
in advance as possible, potentially sensitive subjects relating to
ensuring shareholder loyalty;
account closing. The process also identifies any weaknesses in internal
that conveys a clear, consistent message: communications must
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control and the processes associated with assessing costs and income
allow investors to gain a precise, accurate understanding of the
that, due to their nature and amount, have a significant impact on
Company’s value and management’s capacity to boost value even
Group performance, so that these can be rectified if necessary before
further. Investors must be properly informed in order to make
the annual closing. The specific work that the countries are required to
decisions;
carry out, and the Statutory Auditors’ reviews, have led in particular to
while maintaining the principle of shareholder equality with regard
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internal control of the supplier cycle, review of the main disputes and
to information: any financial information that might have an impact
risks, and impairment testing of stores and goodwill.
on market prices must be made public via a single, centralised
In order to provide an opinion to the Board of Directors on the draft
source at Group level.
financial statements, the Accounts Committee reviews the annual and
Organization of financial communications
half-yearly financial statements and the findings of the Statutory
Auditors’ team concerning their work.
Financial announcements address a diverse audience, primarily
With this in mind, the Accounts Committee meet regularly and as
comprised of institutional investors, individuals and employees, via
necessary so that the Accounts Committee can monitor the process of
four channels:
preparing the accounting and financial information and ensure that
the shareholder relations department is responsible for informing
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the principal accounting options applied are pertinent.
the general public (individual shareholders);
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