Audit Committee Chairman
4 Audit Committee Meetings Held
Areas of Focus this Year
- Impact of New Accounting Standards
- Venco Compliance and Controls Implementation
- Anti-Bribery and Anti-Corruption Policy
|Committee membership and attendance|
Date Joined:1 January 2013
Date Joined: 1 December 2016
Date Joined: 1 February 2013
Date Joined: 1 February 2019
On behalf of the Board, I am pleased to present this year's Audit Committee (the Committee) report. During the year in addition to our regular duties, we focused on the impact of a number of new accounting standards, compliance and control implementation in our newly acquired business in Brazil and Anti-Bribery and Anti-Corruption compliance.
Impact of New Accounting Standards
The Committee endorsed the amendments to the Group accounting policies following the adoption of IFRS 9 and IFRS 15 from 1 July 2018 and reviewed the impact assessment and adoption approach for IFRS 16 from 1 July 2019.
Venco Compliance and Controls Implementation
The acquisition of Laboratorios Vencofarma do Brasil Ltda (Venco) in December 2018 has been a key focus area for this year given the higher risk inherent in doing business in Brazil. Internal Audit has designed a compliance and financial controls improvement plan to implement Dechra's global standards in the Brazilian business, and are providing updates to the Committee on its implementation.
Anti-Bribery and Anti-Corruption Policy
The Committee approved an amendment to the policy to give further information and guidance to the policy audience on the relevance of this area of law to them, and reviewed the third party e-learning course.
We have welcomed Lisa Bright to the Committee and look forward to the additional perspective she will bring given her international pharmaceutical background.
Annual Report 2019
The judgements and factors that the Committee considered in reviewing the Annual Report and Accounts for 2019 (2019 Annual Report) are set out in its report in the Audit Committee Report.
The report also outlines significant accounting matters which received particular focus during the period. It explains why the issues were considered significant and how the Committee satisfied itself on the validity of the judgements made.
The Committee has reviewed the viability statement, which clearly distinguishes the assessment of long term prospects from the viability assessment, with a five year time frame for long term prospects and a three year time frame for viability.
Finally, we specifically reviewed, at the request of the Board, whether the 2019 Annual Report was fair, balanced and understandable and concluded that it was. The basis supporting our conclusion is set out in the Audit Committee Report.
I will be available at the Annual General Meeting to answer any questions about our work.
Audit Committee Chairman
2 September 2019