Lenovo 2016 Annual Report Download - page 104

102 Lenovo Group Limited 2015/16 Annual Report
AUDIT COMMITTEE REPORT
In the fiscal year ended March 31, 2016, the Audit Committee held four meetings, with all members in
attendance at each meeting. The attendance record of the Audit Committee’s members is set out in the
Corporate Governance Report on page 73 and the chart below shows how the Audit Committee allocated
its time during the fiscal year 2015/16.
AUDIT COMMITTEE
Allocation of agenda time
16%
14%
39%
31%
FY2015/16 FY2014/15
Financial reporting 39%44%
Risk management and internal
control 16%17%
External audit matters and
engagement 14%16%
Others (including compliance, tax
and treasury matters) 31%23%
The main matters and areas that the Audit Committee reviewed and considered at its four meetings
during the year were as follows:
FINANCIAL REPORTING
With the support of the external auditor, the Audit Committee assessed whether suitable accounting
policies had been adopted, whether management had made appropriate estimates and judgements and
whether disclosures were in compliance with the financial reporting standards. The Audit Committee:
• Reviewed and recommended to the Board for approval the audited financial results of the
Company and its subsidiaries (collectively, the “Group”) for the year ended March 31, 2015 together
with the related annual results announcement and the annual report incorporating the directors’
report and corporate governance report after discussion with the management and external auditor;
• Reviewed and recommended to the Board for approval the unaudited interim financial results of
the Group for the six months ended September 30, 2015 together with the related interim results
announcement and the interim report after discussion with the management and external auditor;
• Reviewed and recommended to the Board for approval the unaudited financial results of the Group
for the three months ended June 30, 2015 and for the nine months ended December 31, 2015 together
with its respective results announcements after discussion with the management and external auditor;
• Received reports from and met with external auditor and internal auditor to discuss the scope of their
review and findings;
• Reviewed and discussed with management on significant judgements and key assumptions together
with presentational and disclosure issues associated with accounting standards and interpretive
guidance affecting the Group’s financial statements and financial results announcements; items
reviewed and discussed included (a) the accounting treatment for business realignment plan; (b)
the purchase price allocation following the acquisitions; (c) the accounting treatment on the Group’s
goodwill and (d) the accounting provisions and treatments for variable interest entities, indirect tax
receivables, inventories and employees benefits plans;