2007 Interactive Registration Document - Renault

4.5.2.7 ORGANIZATION OF PROCEDURES
FOR PREPARING FINANCIAL
AND ACCOUNTING INFORMATION
The Renault group’s activities are divided into two separate arms, Automobile
and Sales Financing (RCI Banque). The consolidated fi nancial statements are
prepared for publication using a single consolidation tool, organized according
to a chart of accounts common to all entities within the consolidation.
The Group’s information systems support simultaneous generation of fi nancial
statements under local accounting rules to guarantee data consistency at a
time when lead times for centralizing and consolidating information are being
shortened.
PRINCIPLES USED IN PREPARING THE FINANCIAL
STATEMENTS
Renault SA, the consolidating company, gives defi nitions for, coordinates and
supervises the preparation of fi nancial and accounting disclosures. Working
under the Chairmen and CEOs of the subsidiaries, management controllers
and administrative and fi nance directors are responsible for preparing the
parent company fi nancial statements and the restated accounts used in the
consolidated statements.
At all levels in the Group, the main principles used in preparing the fi nancial
statements are:
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exhaustive treatment of transactions;
consistency of transactions with Group accounting policies; Group standards
on presentation and valuation are contained in a manual; this manual, which
is being updated, is supplied to all entities so that information is reported
in a uniform manner;
periodic review of assets (inventories, fi xed assets, accounts receivable,
cash and cash equivalents).
Effi cient linkages between the fi nancial reporting mechanisms and the Group’s
operational systems lie at the heart of the procedures used to prepare fi nancial
and accounting information. The company has quickly come to rely on powerful,
well managed information systems that can cope with the large amounts of
information to be processed, supply processed data to the necessary high
standard, and meet the ever shorter deadlines required by senior management
for the preparation of fi nancial reports.
CORPORATE GOVERNANCE 04
REPORT OF THE CHAIRMAN OF THE BOARD PURSUANT TO ARTICLE L. 225-37 OF THE COMMERCIAL CODE
GROUP FINANCIAL STATEMENTS PUBLISHED UNDER IFRS
Pursuant to Regulation 1606/2002 passed on July 19, 2002 by the European
Parliament and the Council of Europe, Renault’s consolidated fi nancial statements
for 2007 are prepared under International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (lASB) at
December 31, 2007 and endorsed for application by European Commission
regulations published in the Offi cial Journal of the E.U. at year-end close.
The Group publishes half-yearly and annual statements. Preparations for these
statements are made by organizing anticipated close dates (May 31 for June 30,
and October 31 for December 31). Summary meetings are organized with the
Statutory Auditors and attended by senior management. The Accounts and
Audit Committee acts as an oversight body, participating in the key stages of
the approval process for fi nancial and accounting disclosures.
STRUCTURAL ELEMENTS OF THE CONTROL PROCESS
The Renault group’s two divisions have to manage not just the decentralization
of business activities into subsidiaries in France and abroad, but also major
international expansion into countries like Romania, Russia, South Korea and
India. As a result, Renault is continuing to bolster the internal control process
across the board, in long-standing members of the Group and recently acquired
entities, as well as in companies that are still being set up. For this, the Group
relies on the core strategies already being used to obtain high-quality fi nancial
and accounting disclosures and reduce lead times for the preparation of fi nancial
statements:
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operational systems upstream of accounting are systematically
standardized;
introduction of ERP fi nancial and accounting modules into industrial and/or
commercial entities worldwide was pursued; this involved 13 subsidiaries
in 2007, taking the number of legal entities concerned to 57 in 28 countries;
in 2008, the roll-out of ERP at the South Korean subsidiary is planned;
the project structure designed for international deployment of the business
provides a target architecture combining operational and accounting
information systems; the aim is to achieve a high degree of standardization
and implement procedures that have already proved themselves in the rest
of the Group;
the consolidation tool’s data recovery capability and parameterization have
been audited; user training programs have been organized and a permanent
surveillance system is now in service at technical and functional levels.
✦ Global Reporting Initiative (GRI) Directives Registration Document Renault 2007 153
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