Ubisoft 2003 Annual Report Download - page 120

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FINANCIAL REPORT
2004
120
6.5
Procedures relating to the preparation
of financial and accounting information
Monthly reporting:
The group has implemented a procedure for monitoring
operations on the basis of monthly reporting. A budget plan
is prepared by the subsidiaries for the coming year based on
anticipated product release dates. This reporting procedure
makes it possible to measure the performance of each
subsidiary and its contribution to the group results.
Meetings are held among the Administration, Finance and
Administrative Audit divisions to study the various reporting
indicators, to analyze discrepancies between the actual
accounts and the initial forecasts, and to fine-tune the
half-yearly and annual forecasts on the basis of actual
results. Responsibilities are distributed among these three
divisions in order to facilitate quality control for accounting
and financial data.
Reliability of accounting and financial information:
Ubisoft's accounting and financial information is prepared by
the Administration division under the control of the
Chairman and Chief Executive Officer, with final approval
being the prerogative of the Board of Directors.
The accounts of each subsidiary are prepared by the local
accounting departments under the responsibility of their
director. These accounts are subject to a limited review for
the half-yearly accounts and to an audit conducted by local
auditors for the annual accounts. Accounting information is
submitted to the Consolidation department in accordance
with a timetable defined by the Administration division.
The company has invested in resources designed to offer
a simpler and more reliable process for producing the
consolidated financial statements. The group uses HFM from
Hyperion to recover and reconcile accounting data from
subsidiaries. This tool offers automatic consistency checks; as
a result, it facilitates rapid, reliable data transmission
designed to optimize the security of the consolidated
accounts.
The consolidated financial statements are subject to a limited
review on September 30 and a full audit as of March 31 by
the group's statutory auditors. Periodic actions during the
course of the fiscal year permit an early analysis of specific
accounting issues.
This systematic review process allows auditors to anticipate
problems that may arise when the accounts are finalized, and
reduces the time required to prepare the consolidated financial
statements.
The Consolidation department has implemented procedures
to help the subsidiaries gain a better understanding of available
tools and use them more effectively:
●The establishment of a group accounting plan.
●The deployment of an automatic mapping system between
corporate accounts and consolidated accounts.
●The creation of a user manual for the consolidation reporting
package.
●The development of a consolidation manual.
A manual of group accounting principles (99-02/IAS) is
currently being finalized.
At the subsidiary level, the group is continuing to expand its
accounting ERP system within the foreign subsidiaries. The
long-term objective is to integrate all significant subsidiaries
under People Soft.
Designed to establish a formal, uniform accounting system,
this deployment is in keeping with the company's commitment
to enhancing the effectiveness and reliability of strategic
information processing at all levels.
The system is adapted to the local needs of the subsidiaries,
which customize it to the group’s standards using the same
formats. This ensures access to information at all levels and
facilitates the comparison of information.
All of the computing procedures implemented are designed
to promote greater data integration.
Strict authorization rules
The group has established strict rules at both its French
and foreign subsidiaries concerning the authority of each
subsidiary manager with regard to customer receipts and
supplier payments (a double signature procedure and secure
tools, for example).
Consequently, each subsidiary has local internal audit
procedures (delegation of signing authority for banking
transactions, audit of current account operations and so on).