Expedia 2005 Annual Report Download - page 53

As required by Rule 13a-15(b) under the Securities Exchange Act of 1934,as amended (the
""Exchange Act''), our management, including our Chairman and Senior Executive, Chief Executive
Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and
procedures (as defined by Rule 13a-15(e) and 15d-15(e) under the Exchange Act).
Based upon that evaluation, our Chairman and Senior Executive, Chief Executive Officer and Chief
Financial Officer concluded that as of the end of the period covered by this report, our disclosure controls
and procedures were effective in providing reasonable assurance that information we are required to
disclose in our filings with the SEC under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified in the SEC's rules and forms, and include controls and
procedures designed to ensure that information required to be disclosed by us in the reports that we file or
submit under the Exchange Act is accumulated and communicated to management, including our
principal executive and principal financial officers, as appropriate to allow timely decisions regarding
required disclosure.
Changes in internal control over financial reporting.
We have been evaluating, designing and enhancing controls related to processes that previously were
handled by IAC, including equity transactions, income taxes, derivatives, treasury functions, and periodic
reporting in accordance with SEC rules and regulations. We also have been evaluating our internal
controls over financial reporting and discussing these matters with our independent accountants and our
audit committee.
Based on these evaluations and discussions, we consider what revisions, improvements, or corrections
are necessary in order for us to conclude that our internal controls are effective. As part of this process we
have identified a number of areas where there is a need for improvement in our internal controls over
financial reporting. We are in the process of designing and implementing controls and processes to address
the issues identified through this review.
As part of this ongoing process to improve our internal controls over financial reporting, we have
taken the following actions:
(a) Hiring a new financial management team, including our Chief Financial Officer, Chief
Accounting Officer, Vice President of Accounting Operations and Vice President of Corporate Audit
Services,
(b) Adding experienced staff to handle processes that previously were handled by IAC, including
treasury, income taxes, stock compensation and equity transactions, derivatives and periodic reporting
under SEC rules and regulations,
(c) Replacing a large number of temporary staff in accounting operations with experienced
accountants,
(d) Putting into place a more rigorous and timely process of account reconciliations, and
(e) Increasing communication between our operations and accounting departments.
Except as set forth in (a)-(e) above, there were no changes to our internal controls over financial
reporting that occurred during the period covered by this report that have materially affected, or are
reasonably likely to materially affect, our internal control over financial reporting. We expect to continue
monitoring and evaluating our disclosure controls and internal control over financial reporting on an
ongoing basis in an effort to improve their overall effectiveness. In the course of this evaluation, we
anticipate we will continue to modify and refine our internal processes over several reporting periods.
Part II. Item 9B. Other Information
None.
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