Financial reporting

Main features of internal audit and risk management systems relating to financial reporting

Finance

According to the Limited Liabilities Companies Act, the Board of Directors ensures that supervision of the company’s accounting and financial management has been arranged appropriately. The President and CEO ensures that the company’s accounting complies with legislation and that financial management is arranged reliably. The Group’s management is responsible for ensuring that the Group’s business operations comply with applicable legislation and with the decisions of the company’s Board of Directors, and that risk management has been appropriately arranged in the Group.

Internal and external reports are made of the financial situation. Senior management monitors the achievement of financial targets in the Group’s Management Team at least on a monthly basis, through internal reporting at Group level and for the individual business sectors. The reports give an up-to-date overview of the net result, investments and their implementation, the financial situation, the number of personnel and volume of traffic. The Group’s financial situation is reported to the Board of Directors once a month.

External reporting involves preparing the quarterly interim reports and the annual report. The Board of Directors reviews all interim and annual reports before they are published.

The Group’s finance unit is responsible for the accuracy of the Group’s financial reporting. Financial reporting complies with legislation and other regulations and with generally approved accounting principles and other rules governing companies. The aim is to ensure that the Group’s financial reporting produces the essential and correct information for internal reports and the reports that are released for publication.

VR Group has an independent internal audit unit that reports to the President and CEO and to the audit committee of the Board of Directors. The internal audit complies with the international professional standards for internal audit and operates in cooperation with the auditors. The Board of Directors has confirmed operating procedures for the internal audit, and confirms the plan of operations for the internal audit each year. The internal audit unit monitors the Group to ensure that its internal controls are effective and have been appropriately arranged. The internal audit reports on its observations to the audit committee at every committee meeting.