2018 Registration document and annual fi nancial report - BNP PARIBAS54
2 CORPORATE GOVERNANCE AND INTERNAL CONTROL
2
Corporate governance report
2.b Works performed by the Financial Statements Committee and work approved by the Board of directors in 2018
MeetingsNumberof members Attendance
rate 5 4 90%
Examination of the fi nancial statements and fi nancial information The Financial Statements Committee:
■ conducted quarterly reviews of the fi nancial statements based on the documents and information provided by Executive Management and the work carried out by the Statutory Auditors;
■ conducted quarterly analyses of the synthesis of consolidated results and annualised return on equity, as well as the results and ROE by business segment; examined the Group s consolidated balance sheet at 31 December 2017 and the changes that took place between that date and 30 June 2018. On that occasion, it was given an update on off-balance sheet commitments;
■ examined the dividend distribution policy in view of the ECB recommendation concerning compliance with prudential and solvency rules;
■ kept track of the changes in prudential requirements and reviewed changes in risk-weighted assets;
■ examined the provisions for litigation on a regular basis;
■ examined goodwill and proposed adjustments;
■ conducted a detailed analysis of the composition of the Group s balance sheet;
■ read the explanations relating to Credit Valuation Adjustment (CVA) adjustments;
The Board:
■ examined and approved the results of the fourth quarter of 2017, full-year 2017 and the first three quarters of 2018;
■ examined trends in revenues and the cost/income ratio by business for each quarter. For each of the periods, the Board heard a summary of the work of the Financial Statements Committee and the findings of the Statutory Auditors;
■ heard the comments of the Financial Statements Committee on the accounting internal control report reviewed each quarter by the committee;
■ reviewed and approved a draft press release at each meeting devoted to results, and approved the report of the Board of directors in respect of 2017;
■ discussed changes in equity and the capital adequacy ratio with regard to the new prudential solvency regulations and new requirements imposed by the regulator.
■ upon the review of the income statement, the committee heard the comments of the Group s Chief Financial Offi cer and senior executive
in charge of accounting and financial reporting. Every quarter, it interviewed the Group s Chief Financial Offi cer, without the presence of the Executive Management. The Committee heard the comments and fi ndings of the Statutory Auditors concerning the results for each quarter. It met with the Statutory Auditors, without the presence of the Executive Management or the Group s Chief Financial Offi cer, and asked the questions it considered necessary:
The Board acknowledged the report of the discussions held by the Financial Statements Committee with the Statutory Auditors and the Group s Chief Financial Officer, without the presence of General Management.
■ reviewed the accounting certifi cation mechanisms as part of the internal control procedures;
■ examined the section of the management report concerning the internal control procedures rela ting to the preparation and processing of accounting and financial information in respect of 2017; it recommended approval by the Board of directors.
The Board approved the section of the management report on the preparation and processing of accounting and financial information in respect of 2017.
Ad hoc works performed by the Financial Statements Committee in 2018
Examination of the fi nancial statements and fi nancial information
■ Each quarter, the Financial Statements Committee examined the report on audit control points fl agged by Group entities in the context of certifi cation of their fi nancial statements. It analysed trends in the risk level observed for each of the thirty major accounting controls.
■ The Financial Statements Committee reviewed the impact on the Group s consolidated fi nancial statements of the fi rst-time application of IFRS 9, which came into force on 1 January 2018. It was informed, on a quarterly basis, of the impacts of this new standard on the Bank s profi t and loss account, as well as of work to make models used to calculate credit risk provisions more reliable.
The Board was informed of the impacts on Group equity of the first-time application of IFRS 9, replacing IAS 39.
Relations with the Statutory Auditors ■ The Financial Statements Committee received a written certifi cate of independence from each of the Statutory Auditors.
■ It was informed of the amount of fees paid to the Statutory Auditors and reviewed the summary report on assignments not directly related to the statutory audit, without the presence of the Statutory Auditors. It authorised 4 assignments falling within the remit of non-prohibited services for which the Committee s prior authorisation is required.
