BayWa AG Annual Report 2011

Professional and certified
control system
Committed to a corporate
code of conduct
3 • Management Report on the Company and the Group • Opportunity and Risk Report
Internal Control System for accounting processes
The Internal Control System (ICS) which monitors accounting processes is also a key component of opportunity
and risk management. The BayWa Group has set in place a professional control system, which has been certified in
many areas, comprising measures and processes to safeguard its assets and to guarantee the presentation of a true
and fair view of the result of operations.
The annual consolidated financial statements are drawn up through a centralised process. Compliance during this
process with legal framework conditions and rules and regulations defined under the Articles of Association is
guaranteed by the prescribed accounting standards. Corporate Accounting also acts as a direct point of contact for
the managers of the subsidiaries in respect of reporting and for the annual and quarterly financial statements, and
draws up the consolidated financial statements under IFRS.
A control system which monitors the accounting process ensures the complete and timely capturing of all
business transactions in accordance with the statutory provisions and the regulations laid down under the Articles
of Association. Moreover, it serves to guarantee that stocktaking is duly and properly performed and that assets
and liabilities are recognised, valued and disclosed appropriately. The control system uses both IT-based and
manual control mechanisms to fully ensure the regularity and reliability of accounting. Moreover, suitable control
mechanisms, such as strict compliance with the principle of dual control and analytical analyses, have been installed
in all processes relevant for accounting. All accounting-related processes are also audited by Internal Audit which is
independent of such processes.
The obligation of all subsidiaries to report their figures every quarter on an IFRS basis in a standardised reporting
format to BayWa enables target-performance divergences to be identified swiftly, thereby offering an opportunity of
taking action at short notice.
Corporate Accounting monitors all processes relating to the consolidated financial statements as part of quarterly
reporting, such as the capital, liabilities, expenses and income consolidation and the elimination of inter-company
results, in conjunction with the reconciliation of the Group companies.
The departments and units of the Group involved in the accounting process are suitably equipped in terms of
quantity and quality, and training courses are regularly conducted.
The integrity and responsibility of all employees in respect of finance and financial reporting is ensured through
taking each employee under obligation to observe the code of conduct adopted by the respective company.
The employing of highly qualified personnel, concerted and regular training and continuous professional
development, along with stringent functional segregation in financial accounting in the preparing and booking of
vouchers as well as in controlling is guaranteed through compliance with local and international accounting rules
in the annual and consolidated financial statements.
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