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Software AG GB 2013. englisch

• Contracts worth 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 worldwide with a view to compliance with the approval process and 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. Strategic risk management (RCM) The strategic risk management system is composed of a core interdisciplinary Group team of the directors of corpo- rate Finance, Internal Audit and Legal who report to the CFO in this function, as well as risk advisors, who are responsible for identified risks. A manager from the relevant field of expertise serves as risk advisor and is responsible for mon- itoring and managing identified strategic risks. Risks are evaluated according to a uniform valuation system. The system takes into account the expected value of risk effects to Group EBIT for the next three years. The effects on EBIT are divided into three categories. A minimal effect, up to €50 million on Group EBIT, falls into risk category 1. Medium effects on EBIT are category 2 and have an impact on EBIT between €50 and €200 million. The greatest effects on EBIT over the next three years, with an impact above €200 mil- lion, are risk category 3. In a separate step, the probability of these effects on EBIT is also assigned one of three risk levels. Probability between 0 and 33 percent is risk level 1, between 34 and 66 percent is risk level 2 and above 66 per- cent is risk level 3. All strategic risks are assigned points • 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 na- tional subsidiaries are consolidated using the SAP/BCS software tool. At the same time, Corporate Controlling consolidates the countries’ profit and loss statements using Office Plus (management information system). Finally, the two consolidated Group profit and loss state- ments are compared with each other, any deviations 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 Fi- nance 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 co- operation agreements. Central departments within Cor- porate Finance and Corporate Controlling handle internal service allocation. In addition, an intercompany transac- tions policy standardizes internal Group approval process- es 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 implement- ed worldwide to monitor the bid process. All offers to conclude contracts with customers go through this ­approval process, in which the Legal department as well as Corporate Finance, Corporate Controlling and the Man- agement Board are also involved. Software AG | Annual Report 2013 100 Letter from the Management Board Software AG ShareAbout Software AG Highlights 2013