In terms of internal control, appropriate financial reporting means that the financial statements give a true picture of the Group's operations and financial position. Raisio’s financial reporting is based on harmonised principles in all Group companies. International Financial Reporting Standards (IFRS) are used both in internal and external reporting.
For financial reporting to be reliable, accounting processes must be properly supervised. The Group’s financial reporting is coordinated by the Group’s financial administration, which is in charge of maintaining and developing the financial reporting process and related supervisory systems. The service centre of the Group’s financial administration, foreign subsidiaries’ financial administrations and business controllers are responsible for the practical implementation of the control. An independent auditor inspects the accuracy of external financial reporting and also monitors internal reporting.
The supervision of financial reporting is based on the reporting principles and guidelines defined by the Group. The interpretation and application of financial reporting standards is centrally handled by the Group’s financial administration, which also supervises compliance with standards and guidelines. The Group’s financial administration is also in charge of determining and centrally maintaining the reporting, budgeting and forecasting processes. Raisio uses a uniform reporting system, and the same principles are applied throughout the Group. The Group’s reporting instructions and principles as well as guideline related to financial reporting and control measures are available to everyone involved in financial reporting on the Group’s intranet.
The main control and monitoring tool is the Group’s monthly financial and forecast reporting process that analyses the Divisions’ results and deviations against forecasts and against previous year’s results. The performance and other key indicators of the Group and its Divisions are monitored through the Group Management Team’s regular meetings, which also ensure the profitability and effectiveness of operations, and the functioning of internal control.
Moreover, the Divisions monitor the development of their sales and results more frequently, usually on a daily basis.
For the company’s key business operations, Raisio has defined its processes and related control measures supported by the ERP system and other control measures related to the processes. In terms of internal control, information systems play an important role as many control measures are IT-based. Data transfers related to the financial process have been automated as much as possible, and automation is further developed. Raisio has used external auditors to evaluate its systems and data transfer processes.