Reporting and accounting manual

Date of update : 01/04/03

Reporting and Accounting Manual
Balance Sheet Accounts : Profit and Loss Accounts :

5. Functional analysis _______________________________________________________________________

The functional analysis is a classification of total overhead expenditure by function.

WEAK CURRENCY / HYPERINFLATION COUNTRIES

1. GENERAL ACCOUNTING POLICY

The overheads expenditure should be split by function as defined below

Approved by : Updated by : 1.1 Product development : are all activities related to the design, engineering and Approvaldevelopment Date : Date of updat e : products (i.e. manufactured products, systems, services and anything else of Author : V.Giron
1.2
sold by Cegelec). It also includes basic and applied research, technical improvement of existing products, seeking new products, latest technology development new materials and new technologies.

Draft Version : 2

Date : 9/9/99

Production & supply : are all activities related to the production of either manufactured products, systems or services. It includes both the direct production activities (manufacturing execution, assembly, contracting activities,..) as well as the related production support tasks (process engineering, maintenance of production equipment, material/stock management, production/capacity planning and scheduling) and delivery and installation/erection activities. Sales, marketing : are all activities related to market research, product management, sales, tenders, distribution and after-sales commercial support. Project Management : are activities related to customer project management (costing, work breakdown structure, lead times, achieving objectives, supervision) overall design and study of every aspect of a project, co-ordination of specialists studies.

1.3

1.4

1.5 Maintenance : are activities related to the maintenance and refurbishment of sold or existing equipment. It includes all types of maintenance services (preventive and remedial), repair of systems and equipment sold, spare part management and the management of maintenance facilities.

1.6

Finance : are all activities related to financial, accounting, tax and administrative operations : general accounting, account payable and receivable, treasury, tax, audit, management accounting and budget control. Human resources : are social policy related to the attraction, retention, motivation, development and administration of Human Resources, by managing the process of recruitment, career planing, training, performance/potential management, compensation, internal communication, welfare, union relations, payroll, mobility and expatriation, social relations, etc. Sourcing : are sourcing and purchase of office supplies, goods, semi-finished products and raw material used within the company. Information systems and organisation : are all activities related to the design, development, support, maintenance and exploitation of company Information Systems. It covers the aspect of Information Technology infrastructure required to support these activities (network, operations, PC support, etc..), but it does not include the work related to the development of software sold to customers.

1.7

1.8 1.9

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Reporting and accounting manual

Date of update : 01/04/03

5. Functional analysis _______________________________________________________________________

1.10 General services : are activities related to site (general office or factory) services : building
services, the management of the site facilities, mail, security, reception, secretarial services, etc

1.11 Quality : are activities in support of producing customer satisfaction through the assurance of
quality in all products, services and process.

1.12 Legal : are activities related to safeguarding the Company legally through the analysis of
contracts, claims, legal declarations, monitoring and applying rules and regulations, legal studies and business law.

1.13 Strategic Planing : are activities related to the definition of strategic direction and business
development strategy, growth and geographical location, alliances, etc..

1.14 External communication : are activities related to external communication, generic relations
with governments or similar organisations.

1.15 General Management : are multi-functional activities related to the general Management of a
profit centre.

1.16 Re-invoicing of Overheads.

2. REFERENCE IN CARAT
The analysis of the overhead expenditure by function have to be reported quarterly on the schedule 9A40/A148 Overhead expenditures by function. The lines are : - F005 - F010 - F015 - F020 - F025 - F030 - F035 - F040 - F045 - F050 - F055 - F060 - F065 - F070 - F075 - F079/080 - PE250N

Product development Production and supply Sales, marketing Project management Maintenance Finance Human resources Sourcing Information Systems and Organisation (IT) General services Quality Legal Strategic planning External communication General management Re-invoicing of overheads Total = sum of the above lines

The line PE250N Total has to be equal to the line PE250T Total o/h expenditure on the schedule 9A11/A104 Overheads analysis.

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