41 / 63
41
F.2
Evaluation of risks in financial reporting
Report regarding at least:
The main characteristics of the risk identification process, including those relating to errors or
fraud, with regard to:
•
Whether the process exists and is documented.
•
Whether the process covers all the financial reporting objectives (existence
and occurrence; integrity, assessment, presentation, breakdown and
comparability; and rights and obligations), whether they are updated and with
what frequency.
•
The existence of an identification process of the scope of consolidation, taking
into account, among other aspects, the possible existence of complex
corporate structures, holding companies or special purpose vehicles.
•
Whether the process takes into account the effects of other types of risks
(operating, technological, financial, legal, reputational, environmental, etc.) to
the extent that they affect the financial statements.
•
Whether the entity's governing body supervises the process.
The Group currently has review mechanisms in place that reduce the risk that
erroneous financial information is reported to the market. To determine the
importance and probability of the risk of releasing incorrect information, the
Atresmedia Group evaluates the following parameters:
The complexity of the transactions and of the applicable rules
The volume of transactions and the quantitative importance of the items affected
The complexity of the calculations
The need to use estimates or projections
The enforcement of judgements
The qualitative importance of the information
Atresmedia has identified all the processes and organisational units which participate
in the Internal Control over Financial Reporting (ICFR) system. In this regard, the risks
related with the ICFR are assigned to the related organisational processes and units.
Accordingly, Atresmedia has developed a risk identification system for financial
reporting and a series of controls which enable these risks related with the ICFR to be
mitigated.
The Internal Control over Financial Reporting system is included within the GRC
System described above -which refers to those risks and controls related with the
preparation and publication of all the financial information.
In order to implement the ICFR, all the processes which may have an effect on any of
the Group's financial statement items were reviewed, establishing a scale of impacts for
the most significant items of these financial statements. The processes identified with
the greatest impact on the ICFR would be as follows:
−
Advertising sales
−
Outside production
−
In-house production
−
Billing and collections
−
Purchases/ Expenses and payments
−
Financial management
−
Reporting
•
Analysis of accounting, commercial and reporting rules
•
Preparation of individual financial statements
•
Consolidation
•
Preparation of consolidated financial statements
−
Corporate