ManpowerGroup 2009 Annual Report Download - page 41

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Management’s Discussion & Analysis Manpower 2009 Annual Report
In March 2008, the FASB issued new accounting guidance on derivatives and hedging. The new guidance requires enhanced
disclosures about derivative instruments and hedging activities to enable investors to better understand their effects on an
entity’s fi nancial position, fi nancial performance and cash fl ows. We adopted the guidance as of January 1, 2009. See Note
13 to the Consolidated Financial Statements for the disclosure.
In May 2009, the FASB issued new accounting guidance on subsequent events. The new guidance requires disclosure of the
date through which an entity has evaluated subsequent events and the basis for that date. We adopted the guidance effective
for the second quarter of 2009. See Note 1 to the Consolidated Financial Statements for the disclosure.
In June 2009, the FASB issued new accounting guidance on transfers of fi nancial assets. The new guidance eliminates the
concept of a qualifying special-purpose entity and removes the exception from applying the current guidance for consolidation
of variable interest entities to qualifying special purpose entities. The new guidance also defi nes the term participating interest
to establish specifi c conditions for reporting a transfer of a portion of a fi nancial asset as a sale. The Statement also requires
that a transferor recognize and initially measure at fair value all assets obtained and liabilities incurred as a result of a transfer
of fi nancial assets accounted for as a sale. The guidance will be effective for us in 2010. We do not expect the adoption of this
guidance to have a material impact on our Consolidated Financial Statements.
In June 2009, the FASB issued new accounting guidance on consolidation of variable interest entities. The new guidance
amends the process for identifying the primary benefi ciary in variable interest entities and requires ongoing assessments for
purposes of identifying the primary benefi ciary. The new guidance will be effective for us in 2010. We do not expect the
adoption of this guidance to have a material impact on our Consolidated Financial Statements.
In October 2009, the FASB issued new accounting guidance on multiple-deliverable revenue arrangements. The new
guidance amends the criteria for separating deliverables as well as how to measure and allocate consideration for multiple
arrangements. The guidance also expands the disclosures related to a vendor’s multiple-deliverable revenue arrangements.
The new guidance will be effective prospectively for our revenue arrangements entered into or materially modifi ed in 2011.
We are currently assessing the impact of the adoption of this guidance.
FORWARD-LOOKING STATEMENTS
Statements made in this annual report that are not statements of historical fact are forward-looking statements. All forward-
looking statements involve risks and uncertainties. The information under the heading “Forward-Looking Statements” in our
annual report on Form 10-K for the year ended December 31, 2009, which information is incorporated herein by reference,
provides cautionary statements identifying, for purposes of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995, important factors that could cause our actual results to differ materially from those contained in the
forward-looking statements. Some or all of the factors identifi ed in our annual report on Form 10-K may be beyond our
control. Forward-looking statements can be identifi ed by words such as “expect,” “anticipate,” “intend,” “plan,” “may,”
“believe,” “seek,” “estimate,” and similar expressions. We caution that any forward-looking statement refl ects only our belief
at the time the statement is made. We undertake no obligation to update any forward-looking statements to refl ect
subsequent events or circumstances.
Management Report On Internal Control Over Financial Reporting
We are responsible for establishing and maintaining effective internal control over fi nancial reporting as defi ned in Rule 13a-
15(f) under the Securities Exchange Act of 1934. Our internal control over fi nancial reporting is a process designed to provide
reasonable assurance to management and the Board of Directors regarding the reliability of fi nancial reporting and the
preparation of fi nancial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over fi nancial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Under the supervision and with the participation of management, including our Chairman and Chief Executive Offi cer and our
Executive Vice President and Chief Financial Offi cer, we conducted an evaluation of the effectiveness of our internal control
over fi nancial reporting based on the framework in Internal Control–Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission. This evaluation included review of the documentation of controls,
evaluation of the design effectiveness of controls, testing of the operating effectiveness of controls and a conclusion on this
evaluation. Based on our evaluation we have concluded that our internal control over fi nancial reporting was effective as of
December 31, 2009.
February 19, 2010