ICGN Statement and Guidance on Political Lobbying and Donations And Accounting and Auditing Practices Committee Annamária Ardeléan Andrea Busto Gómez Carolina Coronas Oro

ICGN Statement and Guidance on Political Lobbying and Donations (I) · Guiding principles: 1) Legitimacy 2) Transparency 3) Accountability 4) Responsibility · Procedures: 1) The company policy should be clearly communicated 2) Internals controls + sanctions 3) Monitoring of the effectiveness of political lobbying and donations by the Board.

ICGN Statement and Guidance on Political Lobbying and Donations (II) ·Legitimate corporate political activities Legal + transparency + linked to business purposes + + supported by shareholders Legitimate political activities ≠ illegitimate political activities · Transparency and disclosure - Publicly disclosed and easily found: activies + giving policies and processes - Transparency about accepting employees (Board of Directors)

ICGN Accounting and Auditing Practices Committee (I) · Financial accounts’ objective “To provide information that is useful to present to potential equity investors as the providers of risk capital and bearers of residual risk. However, it should also be aimed at other stakeholders” · Qualitative characteristics of reported information -Relevant - Complete, Reliable - Verifiable - Timely - Comparable & Consistent - Transparent - Understandable - Prudence - Matching - Going Concern

ICGN Accounting and Auditing Practices Committee (II) · When there is uncertainty: Fair (market) values ≠ Cost-based approaches · Auditing Companies should ask auditors to provide enhanced reporting to the Audit Committee · Fraud Responsibility for the prevention and detection is of those charged with governance of the entity and management

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