Annual Corporate Governance Report 2017

47 F.4.1. A specific function charged with defining, keeping accounting policies up to date (accounting policies area or department) and resolving doubts or conflicts arising from their interpretation, maintaining smooth communication with the organisation’s heads of operations, and an updated accounting policies manual notified to the units operated by the entity. The Audit and Control Committee is the body charged with analysing, discussing and presenting the most significant accounting policies and methods. In the Atresmedia Group, these methods are mainly related with: - Consumption of rights and programmes - Recognition of provisions for contingent liabilities - Measurement of financial investments Furthermore, all regulatory changes relating to accounting, auditing and corporate risk management are communicated to the Audit and Control Committee by Internal Audit and the Finance Department. The external auditor, the Finance Department and Internal Audit maintain constant and smooth communication that enables any accounting, tax or other development to be analysed that may have an impact on the financial statements, as well as any potential doubts to be anticipated and dealt with regarding accounting entries arising from the interpretation of accounting policies and methods. F.4.2. Mechanisms to capture and prepare financial information using homogeneous formats applied and used by all the entity or group units, which support the main financial statements and notes, as well as the information provided on the Internal Control over Financial Reporting (ICFR) system. The Atresmedia Group has at its disposal the mechanisms to capture and prepare its financial information using homogeneous formats and applications, such as the SAP-R3 (Accounting) and FRANGO (Consolidation) applications that are used by all units and subsidiaries of the Group. Furthermore, the different business units use management systems that are integrated in SAP R3, in such a way that the upload of information is performed via interfaces and clearly defined processes - many of which are automated; the necessary controls are in place and supervisory and review processes are carried out by the Group’s Finance Department. F.5 Oversight of the functioning of the system Disclose the existence of and describe the main features of at least: F.5.1. The ICFR supervision activities undertaken by the Audit Committee and an internal audit function the concerns of which include supporting the Audit Committee in its role of monitoring the internal control system, including ICFR. Also disclose the scope of the evaluation of the ICFR system performed in the year and of the procedure whereby the person in charge of performing the assessment notifies his/her results, if the entity has an action plan detailing the possible corrective measures, and if their impact on financial reporting has been considered. As described in earlier sections, the Audit and Control Committee is the body responsible for the supervision of the policies and procedures, the preparation and completeness of the financial information, adequate determination of the consolidation scope and correct application of accounting principles. The powers and duties of the Audit and Control Committee regarding this topic are to: oversee the completeness of financial information and the process of production and presentation; regularly check internal control and risk management systems; oversee the independence and effectiveness of the internal audit function; adopt the internal audit plan, which includes ICFR review objectives;