Internal control and risk management systems related to financial reporting
The financial reporting process refers to activities that generate financial information used in managing the Company and financial information published in accordance with the requirements of legislation, standards, and other regulations covering the Company’s operations.
The role of internal control is to ensure that the Company’s management has access to up-to-date, sufficient, and accurate information required for managing the Company, and that the financial reports published by the Company provide an essentially accurate view of the Company’s financial position.
Governance
The Fiskars Group’s global Finance function operates under the leadership of the CFO and also comprises the Group Treasury responsible for financing and financial risk management.
The Business Areas and Global functions are run by their own management teams.
The Business Areas, Global functions, and legal entities in the countries where the Group operates comprise the base level of financial reporting.
The Business Areas and Global functions are responsible for the day-to-day risk management associated with their operations.
The Board of Directors, the Audit Committee, the Group leadership, and the management teams of each Business Areas and Global Function monitor the development of the financial situation and analyze the progress made towards reaching targets on a monthly basis.
Planning and performance reporting
Setting and monitoring financial targets is an important part of Fiskars Group’s management responsibilities. Short-term financial targets are set as part of the annual planning cycle, and progress in achieving these targets is monitored on a monthly basis. The Business Areas, Global functions, and Group legal entities report actual monthly financial data and file monthly projections on how the financial performance is expected to develop over the reporting period.
The Group’s financial performance is reviewed on a monthly basis using a reporting system that covers all units and operations.
Information from reporting units is consolidated and validated by the Group’s Finance organization, and the data are used to prepare a monthly report for senior management. Monthly reports contain condensed income statements for Fiskars Group’s Business Areas, key indicators, and an overview of the major events affecting their businesses. Reports also include a consolidated income statement, balance sheet data, cash flows, and a projection of the expected development of the financial situation.
Accounting principles and financial IT systems
Financial reporting is governed by a set of common principles. The Group applies the IFRS accounting standards approved within the EU and has a common Group chart of accounts. The Group’s financial management organization has drawn up guidelines for units that cover the content of financial reporting and the reporting schedule.
Legal entities in countries use several different accounting and financial reporting systems. Group-level financial reporting is handled using one centrally managed consolidation system. Business Areas, as well as Group legal entities, are responsible for providing data for the Group’s consolidation system. The Group-level financial management organization is responsible for maintaining the system and for ensuring that input data is appropriate and correct.
Updated February 20, 2024