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Software AG GB 2012, englisch

06 HIGHLIGHTS 08 LETTER FROM THE MANAGEMENT BOARD 12 THE COMPANY 38 SOFTWARE AG SHARE 46 CORPORATE GOVERNANCE 58 REPORT OF THE SUPERVISORY BOARD 68 GROUP MANAGEMENT REPORT 155 CONSOLIDATED FINANCIAL STATEMENTS 245 FURTHER INFORMATION 141 Risk management in the financial reporting standards process The risk of financial reporting errors is largely eliminated by the following processes: • Detailed, global, IFRS-compliant accounting standards must be used. Compliance with these standards is mon- itored by Corporate Finance and verified by Internal Audit. • The national subsidiaries’ accounting departments are monitored by the local Finance, Controlling, and Admin- istration (FC&A) managers, who are in turn supervised by regional FC&A managers. The subsidiaries report their figures to Corporate Accounting, which is part of the Corporate Finance team. There, the figures from the national subsidiaries are consolidated using the SAP/ BCS software tool. At the same time, the Corporate Con- trolling consolidates the countries’ profit and loss state- ments using Office Plus (management information sys- tem). Finally, the two consolidated Group profit and loss statements are compared with each other, any devia- tions are investigated, and any discrepancies that arise are corrected. • Worldwide separation of the functions of generating and reviewing accounting figures is guaranteed by segrega- tion into two areas: Corporate Finance and Corporate Controlling. Both of them, with different managers, report to the CFO separately. • As part of monthly report generation, the Corporate Finance and Corporate Controlling departments analyze and review the figures from all reporting entities. Any differences that arise are corrected on a monthly basis. • All internal Group supplier and service relationships are centrally coordinated and legally regulated through cooperation agreements. Central departments within Corporate Finance and Corporate Controlling handle internal service allocation. In addition, an intercompany transactions policy standardizes internal Group approval processes throughout the world. The revenue calculation process is rigorously monitored by means of globally managed approval processes as of the commencement of contract negotiations. The Global Deal Desk system is implemented worldwide to monitor the contract pro- cess. All customer contracts go through this approval process, in which the Legal department as well as Cor- porate Finance and Corporate Controlling are also involved. • Contracts with a volume of more than €0.1 million are subject to an additional review at the corporate level for revenue recognition. • After completing the quarterly reporting, Internal Audit continually reviews all key customer contracts world- wide with a view to their correct representation in accounting. • Global policies regulate access rules for the local and central accounting programs, which are monitored by the General Information Services (GIS) department. • Only employees of Corporate Accounting have access to the data from the SAP/BCS consolidation program. • All Group reports are reviewed by a second person in Corporate Finance in accordance with the dual-control principle. • External experts are commissioned on a regular basis to evaluate such complex matters as stock option plans, pension provisions, legal risks and purchase-price assign- ments within the framework of acquisitions. THE SOFTWARE AG GROUP 69 ECONOMIC CONDITIONS 78 BUSINESS TREND AND ECONOMIC SITUATION 80 FINANCIAL PERFORMANCE 82 FINANCIAL POSITION 89 FINANCIAL STATEMENTS OF SOFTWARE AG 92 (PARENT COMPANY) ADDITIONAL EARNINGS-RELATED FACTORS 95 TAKEOVER-RELATED DISCLOSURES 125 REMUNERATION REPORT 127 RISK REPORT 139 EVENTS AFTER THE BALANCE SHEET DATE 149 FORECAST 151