Report on corporate governance and ownership 2011 - Indesit


<strong>Report</strong> on corporate governance and ownership at 21 March 2012 on 2011 – Annex
The Manual sets forth the Group’s accounting standards, which are based on IAS/IFRS (International
Accounting Standards/International Financial <strong>Report</strong>ing Standards) and which all the Subsidiaries must
use in order to ensure uniformity of content, accounting items and relative evaluation criteria, Such
uniformity is vital for a truthful and fair view representation of business events in the Company’s
records and communication to the market, including interim figures 16 .
The Manual also provides for a Group chart of accounts to guarantee not only uniformity of coding but
also unambiguousness in the accounting of business events that characterize the operations of the
Group’s various Subsidiaries.
In addition to defining Group reporting rules for the various business processes, the Manual, provides
principles and guidelines to apply across the Group in relation to obligations under art. 154-bis, TUIF
(drafting of corporate accounting documents and relative attestations).
III. The sub-certification system
In view of current law and international best practice 17 , the Manual introduced a formal and material
basis for the certification issued by the DP pursuant to the Investor Protection law: in the form
of a series of sub-certifications (“cascade” system) on the part of subjects with operating and/or
administrative responsibilities who have been assigned powers of management or reporting that entail
the sharing of the legal responsibilities of the DP, at least from an internal point of view within the
organisation of the Group and within the bounds of their particular duties.
To cover both the responsibilities attaching to the organisational units and responsibility for producing
the <strong>Report</strong>ing Packages (produced by the legal entities for the purposes of drafting the Group’s
consolidated financial statements), two separate types of attestation were defined:
• attestation of single reporting items in the income statement issued by the management of the
organisational units with operating and control powers;
• attestation of subsidiaries’ <strong>Report</strong>ing Packages issued by their boards of directors.
In both cases (differing substantially only in the definition of the relevant context) the subjects certify
that:
• they have implemented adequate accounting and administrative procedures on the basis of the
DP’s guidelines;
• said procedures were actually applied during the period the accounting data refer to;
• such data corresponds to the accounting records and entries;
• such data give a truthful and fair picture of the financial position and results of the operations of the
company they are responsible for.
To further strengthen the necessary process of compliance, the Financial Compliance Officer 1) is
appointed as a member of the management bodies 18 of subsidiaries that contribute in various ways
to the Group’s financial reporting, and 2) provides the necessary assurance regarding the information
required for the purposes of drafting the consolidated financial statements and the sub-attestations.
16. In addition to the annual and interim financial reports required by law, the Group also approves quarterly financial reports.
17. Especially in companies listed on Wall Street and subject to the Sarbanes-Oxley Act.
18. At least in Subsidiaries in which such bodies have more than one member.
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