Atari 2010 Annual Report Download - page 177

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ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
177
The Group's financial management is in charge of ensuring that the reporting procedure is consistent with Group
guidelines. The procedure calls, inter alia, for the submission of monthly reports by subsidiaries with an analysis of key
operating data and of the use and source of funds, based on a model and standards selected by the Group. In
connection with the Group’s restructuring, weekly cash and revenue reviews by the Comex as well as monthly income
statements by entity and quarterly income statements and balance sheets have been implemented. During the year, the
financial staff and management focused on the introduction of the new financial reporting and the migration of various
financial systems to the United States, the location of key financial and operational management.
Preparation of the consolidated financial statements
The consolidated financial statements are prepared by the financial management on the basis of information provided to
it by the general and financial management of subsidiaries. The manner in which this information is presented must be
consistent with the Group's instructions. The information is prepared by the subsidiaries.
In order to ensure the accuracy of financial reporting by consolidated subsidiaries, Group financial management
circulates internal memoranda issued by the regional financial management. The memoranda include a cost-based
review of the principal financial items, which are compared to budgeted expenses, and a specific review of the business
risks to which they are exposed. They will also be used as a source for quarterly presentations by the regions.
When auditing the consolidated financial statements, the independent auditors examine consolidation reporting
packages provided by the consolidated entities included in their assignment. During the course of their work and travels,
the regional financial officers also validate, on a spot basis, the proper implementation of Group guidelines on the
preparation of consolidated financial statements by the Group's principal subsidiaries and bring issues raised to the
attention of Group management.
Lastly, the consolidated financial statements are submitted to the Group Chief Financial Officer and the Audit Committee
for review, prior to their approval by the Board of Directors.
(6) Self-assessment of internal control procedures
During fiscal year 2009/2010, the Group worked on a formal, structured program for the oversight of its internal
procedures. The Group has expanded its oversight program by the initiation of the GRA, to be completed in Fiscal
2010/2011.
4. PRINCIPLES AND RULES GOVERNING THE COMPENSATION AND BENEFITS PROVIDED TO
CORPORATE OFFICERS
Within the Board of directors, the four-member Nomination and Compensation Committee, which includes two
independent directors, is in charge of making proposals to the Board of Directors regarding compensation paid by the
Group (mainly to officers and executives) and the distribution of stock options and free shares.
Fees are paid to the directors on the basis of their participation at Board and committee meetings. For fiscal year
2010/2011, the director fees policy will also encourage physical presence in order to enhance cohesion within the Board.
The gross compensation paid to the Chairman of the Board is fixed. The gross compensation paid to the Chief Executive
Officer includes a fixed portion and a variable portion, set annually by the Board of Directors on the basis of proposals
submitted by the Nomination and Compensation Committee. The variable compensation of the Chief Executive Officer is
contingent on the achievement of annual performance targets. In addition, officers, executives and selected critical
managers were granted stock options.
Compensation paid to members of the Board of directors is described in section 7 of the Board of directors’ Management
Report included in the Registration Document.
5. DISCLOSURE OF INFORMATION REQUIRED UNDER ARTICLE L. 225-100-3 OF THE FRENCH
COMMERCIAL CODE
The Board of Directors’ Management Report, which is included in the Registration Document, contains the information
required by Article L. 225-100-3 of the French Commercial Code.