JVC 2010 Annual Report Download - page 27

JVC KENWOOD Holdings, Inc. 25
■ Reform of accounting system and structures
1. Establish, with respect to the subject inappropriate accounting
treatment, a “committee for preventing recurrence” as an
entity under the Compliance Committee of JVC Kenwood, and
first develop “improvement measures to prevent recurrence of
inappropriate accounting, etc.,” applicable throughout the
Group to be promoted and monitored. In addition, assign a
director responsible for compliance at each Group company to
strengthen the internal control system of every company.
2. As part of the reexamination of the human resources system,
establish working rules, dismissal regulations and other
compliance-related rules as the rules of JVC Kenwood, and
apply these rules uniformly throughout the entire Group.
3. Revise the current accounting system in which profits and
losses are accounted for within each of the regional companies
in Europe, Americas, and Asia, and establish consolidated
accounting rules and develop operational workflows and
systems that enable JVC Kenwood to centrally identify the
profits and losses of business companies as well as of overseas
affiliates. In addition, promote a strengthening of consistent
consolidated management by business segment, establish a
management system over affiliated companies overseas, and
revise the existing accounting rules as necessary.
4. To prevent recurrence of inappropriate accounting treatment,
establish a double-checking system between overseas sales
subsidiaries and the accounting function of business
departments, as well as a cross-checking system with the
accounting department of the head office.
■ Reinforcement of Monitoring
1. JVC Kenwood, by reinforcing the activities of its management
audit office, has been widely conducting onsite examinations
of business companies and their affiliates within the Group to
centrally monitor the internal control status, and is making
efforts to promptly detect problematic issues from a
perspective that is separate from that of the business locations
to heighten the capability to prevent the occurrence of
problems. Further efforts are being made to strengthen and
enhance the staff of the management audit office of JVC
Kenwood and ensure that a thorough monitoring function is
in place.
2. In order to put in place a transparent corporate culture, ensure
that based on the Code of Conduct, rules are defined with
respect to the reporting of unusual circumstances caused by
an inappropriate action. Specifically, establish an internal
whistle-blowing system as a mechanism to enable personnel in
overseas affiliates also to directly access JVC Kenwood.
3. The management audit office of JVC Kenwood, in order to
validate the effectiveness of the series of measures to prevent
recurrence, will collect accounting, financial, and other relevant
data monthly from all related companies of the Group and
analyze the data.
Corporate Governance