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The internal control over financial reporting (hereinafter, ICFR) system has been designed and configured to provide reasonable assurance as to the reliability of the financial information disclosed to the markets.
In the following table is a summary of the bodies involved in the ICFR, their responsibilities and duties with respect to it:
The Corporate Director, who is responsible for ICFR, boasts an extensive background in accounting and financial reporting, acquired during his years in auditing and financial management work. In 2017, the Corporate Director was in frequent contact with the financial statement auditor and the firm tasked with the accounting function during the year, addressing any issues arising and receiving updates from them on any developments with an impact on the ICFR system.
The process of identifying financial reporting risks, including risks of error or fraud, is one of the most important aspects of Lar España’s ICFR methodology. This process is documented in an internal methodology guide explaining the ICFR management and assessment process: “Internal Control over Financial Reporting (ICFR) Manual of Lar España Real Estate SOCIMI”.
Lar España has documented the most significant processes. In 2018, it revised the documentation prepared the year before.
Lar España has documented the Organisation´s General Controls and its most significant processes (including the period-end closing - providing for a specific review of critical judgements, estimates, valuations and projections -, revenue recognition, asset appraisals and property acquisitions). Last year, it also reviewed and updated the documentation detailing some of the processes related with the generation of financial information.
Internal risk monitoring and management systems information have been reviewed by the external auditor and no inconsistencies or incidences were raised that could affect this.