ManpowerGroup 2011 Annual Report Download - page 45

Management’s Discussion & Analysis ManpowerGroup 2011 Annual Report 43
In June 2011, the FASB issued new accounting guidance on presentation of comprehensive income. The new guidance
requires an entity to present the total of comprehensive income, the components of net income, and the components of
other comprehensive income either in a single continuous statement of comprehensive income, or in two separate but
consecutive statements. It eliminates the option to present components of other comprehensive income as part of the
statement of shareholders’ equity. The guidance is effective for us in 2012 and must be applied retrospectively. We do not
expect the adoption of this guidance to have a significant impact on our Consolidated Financial Statements.
In September 2011, the FASB issued new accounting guidance on testing goodwill for impairment. Under the revised
guidance, entities testing goodwill for impairment have the option of performing a qualitative assessment before calculating
the fair value of the reporting unit (i.e., step 1 of the goodwill impairment test). If entities determine, on the basis of qualitative
factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, the two-step impairment
test would be required. The guidance is effective for us in 2012, with early adoption permitted. We do not expect the
adoption of this guidance to have an impact on our Consolidated Financial Statements.
In December 2011, the FASB issued new accounting guidance on balance sheet offsetting. The new guidance requires an
entity to disclose both gross information and net information about instruments and transactions eligible for offset in the
statement of financial position. It also requires disclosures on instruments and transactions subject to an agreement
similar to a master netting agreement. The guidance is effective for us in 2013. We do not expect the adoption of this
guidance to have a material impact on our Consolidated Financial Statements.
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, 2011, 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 identified in our annual report on Form 10-K may be beyond
our control. Forward-looking statements can be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “may,”
“believe,” “seek,” “estimate,” and similar expressions. We caution that any forward-looking statement reflects only our
belief at the time the statement is made. We undertake no obligation to update any forward-looking statements to reflect
subsequent events or circumstances.
Management Report On Internal Control Over Financial Reporting
We are responsible for establishing and maintaining effective internal control over financial reporting as defined in Rule
13a-15(f) under the Securities Exchange Act of 1934. Our internal control over financial reporting is a process designed to
provide reasonable assurance to management and the Board of Directors regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial 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 Officer and
our Executive Vice President and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal
control over financial 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 financial reporting
was effective as of December 31, 2011.
February 23, 2012