Sopra Steria - 2019 Universal registration document

2 RISK FACTORS AND INTERNAL CONTROL Procedures relating to the preparation and processing of accounting and financial information

Procedures relating to the preparation and 4. processing of accounting and financial information

Coordination of the accounting 4.1. and financial function

Executive Management is involved in the planning and supervision process as well as in preparing the period close. The Board of Directors is responsible for the oversight of accounting and financial information. It approves the annual accounts and reviews the interim accounts. It is supported by the Audit Committee, as described in Section 1.3.3. of Chapter 3, “Corporate governance” of this Universal Registration Document (pages 78 to 79).


Limited number of accounting entities By keeping the number of legal entities, and therefore accounting entities, relatively low, the Group can drive reductions in operating costs and minimise risks. Centralised coordination of the accounting and financial function The activities of Sopra Steria’s accounting and financial function are overseen by the Group’s Finance Department, which reports directly to Executive Management. The responsibilities of the Finance Department mainly include the production of the accounts, financial controlling, tax issues, financing and cash management, and participation in financial communications and legal matters. Each subsidiary has its own financial team that reports functionally to the Group’s Finance Department. Supervision of the accounting and finance function by Executive Management and the Board of Directors The Finance Department reports to the Group’s Executive Management. As with all other entities, it follows the management reporting and controlling cycle described above: weekly meetings to address current business activities, monthly meetings devoted to a detailed examination of figures (actual and forecast), the organisation of the function and the monitoring of large-scale projects.


Accounting The configuration and maintenance of the accounting and financial information system are centralised at Group level. Central teams manage access permissions, and update them at least once a year. The granting of these permissions is validated by Finance teams at the subsidiaries. All Group companies prepare, at a minimum, complete quarterly financial statements on which the Group bases its published quarterly revenue figures and interim financial statements. Monthly cash flow forecasts for the entire year are prepared for all companies and consolidated at Group level. Accounting policies and presentation The accounting policies applied within the Group are presented in the notes to the consolidated financial statements in this document. At each balance sheet date, the Audit Committee ensures that these policies and presentation have been applied by the Finance Department and the Statutory Auditors. The proper use of the percentage-of-completion method to value ongoing projects is monitored on a permanent basis jointly by the Industrial Department and by the Finance Department (Financial Controllers).



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