Annual Corporate Governance Report 2017

44 significant items of such financial statements. The following processes have been identified as having the highest impact on ICFR: Advertising sales Outside production In-house production Billing and collections Procurement/payments and expenditure Financial management Reporting: analysis of accounting standards and commercial and reporting rules, production of separate financial statements, consolidation and production of consolidated financial statements Corporate affairs Risks relating to financial reporting in connection with these processes have been identified, as have the controls put in place to mitigate them. Accordingly, Atresmedia has developed a risk identification system in financial reporting and a series of controls enabling these risks related with the ICFR to be mitigated. Whether the process covers all financial reporting objectives (existence and occurrence; integrity, assessment, presentation, itemised disclosure and comparability; and rights and obligations), and whether they are updated and, if so, with what frequency. Atresmedia has identified all the processes and organisational units that have an effect on ICFR. The risks related with ICFR are identified and assigned to the corresponding processes and organisational units. The Internal Control over Financial Reporting system (ICFR) of Atresmedia is included within the Risk Management and Control System described in detail in section H with reference to risks and controls surrounding financial reporting. Risks are assessed annually as to the following contingent errors: Cut-off Existence • Completeness • Presentation • Records • Validity • Measurement The controls identified for each of the risks related with ICFR are classified on the basis of whether they are designed to prevent or detect errors and fraud in financial reporting. The controls are regularly assessed during the year. To determine the significance and probability of the risk of material misstatement in financial reporting, the Atresmedia Group examines the following parameters: Complexity of transactions and the applicable rules and standards Transaction volume and quantitative significance of affected items Complexity of calculation Need to use estimates or projections Need to use expert judgement Qualitative significance of the information The existence of a process to identify the scope of consolidation that takes account, inter alia , of any complex corporate structures and conduit entities or special purpose vehicles. In the case of the Atresmedia Group, the companies within the scope of consolidation for the consolidated financial statements of the Atresmedia Group are identified. However, a specific company identification process does not exist due to the absence of complexity in the Group’s corporate organisation.