Saint Gobain - Registration document 2016

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7 RISKS AND CONTROL
2. Internal control
184 SAINT-GOBAIN - REGISTRATION DOCUMENT 2016
ORGANIZATION OF INTERNAL CONTROL IN PREPARING AND 2.5
FOR SHAREHOLDERS
PROCESSING FINANCIAL AND ACCOUNTING INFORMATION
company) financial statements
Compagnie de Saint-Gobain (parent 2.5.1
opening balance sheet with the prior-period closing balance
consistent application of accounting policies, alignment of the
This information is prepared in accordance with current and
third parties in accordance with French legal requirements.
including the going concern principle, the principles of
generally accepted accounting standards and principles,
financial information for shareholders, partners and other
The Accounting Department is responsible for producing
periods, and substance over form.
revenue to which they relate, segregation of accounting
sheet, recognition of expenses in the same period as the
Accounting organization 2.5.2
works upstream to anticipate the accounting impacts of
enables the monthly reconciliation and substantiation of the
and procedures set out in the Group’s doctrine memos. It
represented. The organization also has an advisory role and
accounts and the true and fair view of the events which are
The accounting organization is based on the rules, methods
material impact on the Company’s financial statements.
events and the regulatory changes that are likely to have a
terms of classification of transactions, and complies with the
The chart of accounts is aligned with the Company’s needs in
Information system.
materiality principle. It is linked to the Group’s Financial
Internal control 2.5.3
Internal control is based on periodic assessments of the
process for preparing accounting and financial information.
In addition to controlling compliance with payment
compare actual and year-to-date expenses with the initial
signature, allowing them to check these expenses and also to
budget.
and formalized through a cost accounting system organized
respect of responsibilities defined by general management
monthly schedules listing the expenses incurred under their
by cost center. Specifically, cost center managers receive
authorization procedures and the double signature rule for
contributes to internal control by acting as guarantor in
secure payment means, the Accounting Department
Finance Department and the Group’s general management at
A summary of these cost accounting reports is sent to the
the end of each month.
reliability of the financial statements.
for managing accounting risks and contributing to the
Measures are implemented to strengthen the arrangements
level of accounting control by the Finance Department of
Financial Control Department, with the aim of increasing the
Balance Sheet Review under the direction of the Group
For this purpose, in 2016, Group units were subject to a
each entity.
statements
Group consolidated financial 2.5.4
Financial Information System for the Group and all the
procedures, training, and integrating the subsidiaries into the
department is also responsible for updating consolidation
maintaining and developing consolidation systems and the
consolidation process, processing information, and utilizing,
Group Consolidation and Reporting Department. This
The consolidated financial statements are prepared by the
Sectors.
Group standards 2.5.5
English. New consolidation instructions are issued for each
intranet site and an online training application in French and
previous period-end and enhancements to reporting systems,
monthly closing, describing the changes compared with the
information and periodic training to subsidiaries in
The Consolidation Department is responsible for providing
the consolidation manual, a number of data input manuals, an
conjunction with the Sectors and General Delegations, using
standards and procedures, in collaboration with the Group’s
Doctrine Department.
Each year, the Consolidation Department offers training
sessions.