Eurazeo / 2019 Universal Registration Document
Risk management Risk management and internal control systems
4.1.4
INTERNAL CONTROLCOVERING THE PREPARATIONAND PROCESSING OF FINANCIAL INFORMATION Overview of theorganizational structureand managementof accounting and financialinformation
Anticipation ofconstraintsrelating tothe closing of the accountswithin a limited time period The closing schedule for accounts and the related instructions are prepared sufficiently in advance to enable the financial teams to organize their procedures and anticipate closing constraints. If Eurazeo identifies a risk of problems for an investment, it takes the measures necessary tohelp it meet the defined schedule. Control of the qualityof the consolidationreports of investments When the annual and interim financial statements are prepared, each subsidiary's consolidation report is reviewed by the Consolidation Department in order to ensure, in particular, that accounting policies and methodsare correctlyand uniformlyapplied. All restatementsand adjustment entries are examined by the Consolidation Department. Manual restatementsare rationalized and explained. Opportunities for improvement identified by the Consolidation Departmentas part of its review of the reportingpackagesare tracked with the investments. Impairment tests are performed withina specific framework The assumptions made and the results obtained during impairment tests by consolidated investments must successively be validated by members of the investment team (in charge of monitoring the investment),reviewed by the ConsolidationDepartment,and then presented to the Executive Board, before being used to justify the value of corresponding assetsin the restatedfinancial statements. and processing of the separate financial statements Main measures implemented to ensure the quality of the separate financialstatements of Eurazeo and its holding companies Cash and investmenttransactions The comprehensive and adequate recording in the accounts of investment and cash transactions is based on the interaction between three complementary departments: the Legal Department, the Treasury Department and the Accounting Department. The comprehensive recording of transactions relies on the reconciliation of transactions identified by the Accounting Department, with information collected by the Legal Department and the cash flows recognized by the Treasury Department. Investments are valued in the separatefinancial statementsin line with the results of impairment tests conducted for the preparation of the consolidated financialstatements. Off-balance sheet commitments inventoryand monitoringprocedure Eurazeo SE contracts are reviewed by the Legal Department, which records the corresponding commitments. Using the data obtained, the Legal Department and the AccountingDepartment work together to conduct a cross-analysis of the data held and to prepare the list of off-balancesheet commitments. Processes for the preparation C.
A.
The financial statements of the Eurazeo group are prepared in accordance with IFRS standards and interpretations as adopted in the EuropeanUnion at the reportingdate. As parent company, Eurazeo SE defines and oversees the preparation of publishedaccountingand financial information.This process, which is under the responsibility of the Chief Financial Officer, is organized by the Consolidation Department. The Chief Financial Officers of investments are responsible for preparing the separate financial statements of investments and financial statements restated for consolidation purposes. These financial statements are prepared under the control of their respectiveBoardmembers. The Executive Board approves Eurazeo's separate and consolidated financial statements (interim and annual). Accordingly, it ensures that the processes for preparing accounting and financial information producereliable informationand give, in a timelymanner,a fair viewof the Company's financial position and results. It obtains and reviews all information that it deems useful, such as closing options, critical accounting positions and judgments, changes in accountingmethod, results of audits performedby the StatutoryAuditors and explanations of the calculationof profit or loss, the presentationof the Statementof Financial Position and theNotes to thefinancial statements. Members of the Audit Committee examine the annual and interim financial statements, and monitor the process for preparing accounting and financial information. Their conclusions are based notably on informationproducedby the Chief FinancialOfficer and his team, exchanges with the team during Audit Committee meetings (held at least once every quarter) and the findings of internal audits. The Chairman of the Audit Committee reports on the Committee's work to the Supervisory Board.
04
B.
Processes for the preparation and processing of accounting and financialinformationfor the consolidated financialstatements
Processes for the preparation and processing of the consolidated financial statements are organized and coordinated by the Consolidation Department. It prepares the consolidated financial statements under the responsibility of the Chief Financial Officer. The consolidated financial statements are produced using consolidation software. Detailed consolidation instructions are essential to the preparation of the consolidatedfinancial statementswithin the given deadlines. They are drafted by the ConsolidationDepartment before each interim and annual closing, for the attention of the Finance Departments of the variousconsolidatedoperatingsub-groups.
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2019 UNIVERSAL REGISTRATION DOCUMENT
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