ManpowerGroup 2012 Annual Report Download - page 49

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 annually present 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. We adopted this guidance in the first quarter of 2012.
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. We adopted this guidance effective January 1, 2012. We did not adopt the option of performing a
qualitative assessment and the application of the guidance to our annual impairment test had no 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 are currently assessing the impact of the
adoption of this guidance will have on our Consolidated Financial Statements.
In July 2012, the FASB issued new accounting guidance on testing indefinite-lived intangible assets other than goodwill for
impairment. The revised guidance allows entities the option to first assess qualitative factors to determine whether it is
necessary to perform the quantitative impairment test. An entity electing to perform a qualitative assessment is no longer
required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on a qualitative
assessment, that it is “more likely than not” that the asset is impaired. The guidance is effective for us in 2013. We do not
expect the adoption of this guidance to have an 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, 2012, 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. Deloitte & Touche LLP, the Company’s independent registered public accounting firm, issued
an attestation report on the effectiveness of the Company’s internal control over financial reporting as of December 31,
2012, which is included herein. Based on our evaluation we have concluded that our internal control over financial reporting
was effective as of December 31, 2012.
February 22, 2013
Management’s Discussion & Analysis ManpowerGroup 2012 Annual Report 47