ICGN Statement and Guidance on Political Lobbying and Donations

And Accounting and Auditing Practices Committee

Annamária ArdeléanAndrea Busto GómezCarolina Coronas Oro

ICGN Statement and Guidance on Political Lobbying and Donations (I)

· Guiding principles:1) Legitimacy2) Transparency3) Accountability4) Responsibility

· Procedures:1) The company policy should be clearly communicated2) Internals controls + sanctions3) 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 activitiesLegal + 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

· AuditingCompanies should ask auditors to provide

enhanced reporting to the Audit Committee

· FraudResponsibility for the prevention and

detection is of those charged with governance of the entity and management

THANKS FOR YOUR

ATTENTION