registration document France Telecom 2009 - Orange.com

14 INTERNAL
administrative and management bodies and senior management
CONTROL AND RISK MANAGEMENT
This reporting is used to track the Group’s management and
performance indicators and is articulated around the following:
■ a weekly report the purpose of which is to provide the Chief
Executive Offi cer and the Executive Committee the key
operating indicators for the Group and the major events of
the week;
■ monthly reports broken down by published segment, line of
business and country; these include fi nancial and operating
indicators.
The Executive Committee’s business reviews are organized in
each country under the authority of the Deputy CEO in charge
of Finances and Information Systems. Their purpose is to
steer business and review the updated end-of-year forecast.
These monthly reviews are attended by the Group Finance
Department and the country’s Finance Director and staff. The
Chief Executive Offi cer participates in the quarterly reviews.
These reviews are based on a formalized report structure.
Gathering of information for these reports is organized for each
country according to the Group’s reporting instructions.
Moreover, the Group draws up a multi-year plan with the main
Group entities, setting out the medium-term fi nancial trajectories
for the Group and its main entities.
14.3.3.2 The common reference system and
accounting standards and methods
within the Group
In order to prepare the projected and actual consolidated
statements, the Group has adopted unifi ed principles, which
implies:
■ a uniform reference system, accounting standards and
methods, and consolidation rules;
■ standardization of recovery formats; and
■ use of a common consolidation and reporting application
within the Group.
The Group has a single reference system that standardizes all
items in the consolidated reporting, including unrecognized
commitments. This reference system is the responsibility of the
Group’s Accounting Department. All of the Group’s consolidated
companies have adopted this system.
Within the Group’s Accounting Department, the accounting
policies department is responsible for defi ning and disseminating
the Group’s accounting policies under IFRS standards so that
the consolidated fi nancial statements can be produced. The
objectives pursued should be used to introduce a permanent
standards oversight process and systematically formalize
structured IFRS Group accounting policies through the Group’s
accounting manual, closing instructions and information
meetings.
This mechanism is completed by implementing relevant
standards in the countries and divisions. This network makes
it possible to:
■ identify accounting issues;
■ disseminate the Group’s accounting policies in the divisions,
countries and entities and accounting departments;
■ take account of the training needs of individuals in charge of
applying Group accounting policies.
14.3.3.3 ISO 9001 quality certification for the
Accounting Department
Since 2001, in the area of Quality Management, France
Telecom S.A. has held ISO 9001 V2000 quality certifi cation from
AFAQ/AFNOR for the accounting departments in France. Since
2007 all departments of Group Accounting Department based
in France have received ISO 9001 v2000 certifi cation.
For each accounting process, the approach makes it possible
to look for ways of improving, simplifying and adopting best
practices, so that the fi nancial statements can be produced
in good time and so that they meet the regulatory quality
standards.
Accounting operations’ management sets out the objectives
of the quality process, which includes the following main
guidelines:
■ improving the performance and the services provided;
■ consolidating its partners’ trust;
■ making its players more professional.
14.3.4 Summary of work on internal
control implemented
under Section 404
of the Sarbanes-Oxley Act
Because it is listed on the New York Stock Exchange,
France Telecom is subject to the US Sarbanes-Oxley Act. In
accordance with the provisions of Article 404 of the Act, the
Chief Executive Offi cer and the Chief Financial Offi cer must
prepare a report, in which they make a declaration on the
effectiveness of internal control of the production of the Group’s
fi nancial statements, established according to IFRS standards
and presented in the Annual Financial Statements (Form 20-F),
that is fi led with the Securities and Exchange Commission (SEC)
in the United States. The Statutory Auditors make their own
assessment of internal control. The opinion of management and
Statutory Auditors appears annually in Form 20-F.
To better meet the requirements of Article 404 of the law, France
Telecom, under the Group’s Internal Control Department,
308
2009 REGISTRATION DOCUMENT / FRANCE TELECOM