Key Principles
The Risk Approach methodology was implemented to meet the following requirements:
Focus Reconciliation primarily on the risk items
Decrease the workload within the teams
- Reinforce risk awareness within the teams
The reconciliation periodicity will be based on the risk classification of the accounts:
And on the type of legal Entity:
KEY
OTHER CONSOLIDATED
NON CONSOLIDATED
Structure
Type of Account
| High risk accounts | Medium risk accounts |
|---|---|
| Equity | Other accounts |
| Bank accounts | |
| VAT accounts | |
| Payroll accounts | |
| Technical accounts | |
| Suspense accounts |
High Risk Account Items
| High risk accounts | Account Item | Account Item Description |
| Equity | L100-100 | Equity |
| Equity | L100-101 | Treasury shares reserves |
| Equity | L100-200 | OCI |
| Equity | L100-210 | OCI - Financial Instrument |
| Equity | L100-220 | IAS 19 Revised |
| Bank accounts | A500-100 | Bank |
| Bank accounts | A500-200 | Bank Local |
| Bank accounts | A500-210 | Bank Local - TE |
| Bank accounts | A500-220 | Bank Local OtC |
| Bank accounts | A500-230 | Bank Local PtP |
| Bank accounts | A500-300 | Deposit |
| Bank accounts | A500-400 | GL Bank Interco. |
| Bank accounts | A500-500 | WARP |
| Bank accounts | A500-550 | Sub IBA WARP |
| Bank accounts | A500-600 | Petty Cash |
| Bank accounts | A500-700 | Cash in Transit |
| VAT accounts | X100-100 | VAT Debit / Credit |
| VAT accounts | X100-200 | Intracommunity VAT |
| VAT accounts | X100-900 | VAT Other |
| Payroll Accounts | L600-200 | HR - Payroll Monthly |
| Technical accounts | A400-200 | AR-AP Interco. |
| Technical accounts | A400-140 | CROCO - Invoices to issue |
| Technical accounts | L400-140 | CROCO - Invoices to receive |
| Technical accounts | X900-100 | Technical Accounts |
| Technical accounts | X999-997 | TECHNICAL OTHER ACCOUNTS |
| Technical accounts | X999-998 | TECHNICAL TRANSFER ACCOUNTS |
| Technical accounts | X999-999 | TECHNICAL OPENING VALUES |
| Suspense accounts | L400-700 | AR Down payment received |
| Suspense accounts | A400-700 | AP Down payment payable |
| Suspense accounts | X300-100 | GL Waiting |