Banken for en verden i endring The bank for a ... - BNP Paribas

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Banken for en verden i endring The bank for a ... - BNP Paribas

• report of the Chairman / corporate governance at BNp paribas

fINANCIAL STATEmENTS COmmITTEE

• In 2006, the membership of the Financial

Statements Committee, which was set up in

1994, was unchanged from the previous year

and included Louis Schweitzer (Chairman),

Patrick Auguste, Denis Kessler and Hélène

Ploix. Most of its members have extensive

experience and expertise in the areas of corporate

financial management, accounting and

financial information.

• One of the features of a global banking group

is the complexity of a growing number of its

businesses and product offerings. To ensure

that the Committee’s knowledge remains

fully up-to-date, its meetings include briefings

on key issues, which are then examined in

the presence of the Statutory Auditors. The

information presented can be rounded out by

meetings with managers of Group functional

and operating units, organised by the Board’s

support staff for any Committee members

who express a need for further clarification (1) .

The composition of the Committee complies

with French corporate governance guidelines

which recommend that at least two-thirds of

(1) AFEP-MEDEF 2003 (14.3.1).

(2) AFEP-MEDEF 2003 (14.1).

(3) AFEP-MEDEF 2003 (14.1).

(4) AFEP-MEDEF 2003 (14.3).

(5) AFEP-MEDEF 2003 (14.2.1).

(6) AFEP-MEDEF 2003 (1.4.3).

(7) AFEP-MEDEF 2003 (14.3.1).

(8) AFEP-MEDEF 2003 (14.3.2).

(9) AFEP-MEDEF 2003 (14.2.2).

the directors should be independent (2) . No

members of the Bank’s Executive Management

have sat on the Committee since 1997 (3) . Its

duties and mode of operation are set by the

Board’s internal rules, which are periodically

updated to reflect changes in legislation,

regulations and best practices (4) .

• In 2006, the Committee met four times and

the rate of attendance was 94% (one member

having missed one meeting). Documentation

on agenda items – presented in standardised

layouts – was distributed on average three

to four days prior to the meeting, in line with

French corporate governance guidelines

(5) . It also met, with all members attending,

to select the Statutory Auditors for the 2006-

2011 terms of office (see below).

Review of the financial statements

and financial information

• In accordance with the Board’s internal

rules (6) , in 2006 the Committee reviewed

the financial statements based on the documents

and information provided by Executive

Management and the tests carried out by

the Statutory Auditors. In doing so, it verified

the relevance and consistency of accounting

methods used in drawing up the Bank’s

consolidated and corporate accounts (7) . It

examined the principle of materiality associated

with the standards and the corresponding

determination of materiality thresholds for

the implementation of IFRS.

• It prepared the work and deliberations of

the Board by analysing in depth the issues

requiring particular attention, especially those

related to the new international accounting

standards. The Committee focused its

attention on the Group’s provisioning policy,

management accounting data, profitability

indicators, and all other accounting matters

that raise methodological issues or give rise

to potential risks. It reviewed the impact of

changes in the scope of consolidation on

profit and loss account intermediate balances

and on results (8) .

• When reviewing the financial results for each

quarter, the Committee listened to the comments

and findings of the Statutory Auditors

without any member of Executive Management

being present (9) .

158

CORPORATE GOvERNANCE

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