OPERATING SEGMENTS The Group divides its operations into three operating segments : Corporate Promo , Sports & Leisure , and Gifts & Home Furnishings . Within Group management there are people with responsibility for each operational segment in order to coordinate operations . The products follow the operational segments , but have separate sales teams for the different sales channels , promo and retail .
SALES CHANNELS The Group ’ s products are sold via two sales channels , promo and retail .
CONCEPT GROUPS Within each operational segment there are a number of concept groups responsible for strategic direction , product development and marketing strategy for one or more brands .
FINANCIAL RISK ASSESSMENT The material risks New Wave Group have identified in connection with the financial reporting are inaccuracies in the reporting and valuation of stock , intangible assets , accounts receivable , interest-bearing liabilities , tax , currencies and the risk of fraud , loss or embezzlement of assets . The greatest financial risks in terms of value in the balance sheet are :
Stock , which accounts for around 44 % of the value of the Group ’ s assets
Intangible assets ( mainly goodwill & trademarks ), which account for 23 % of the value of the Group ’ s assets
Accounts receivable , which account for around 17 % of the value of the Group ’ s assets
Interest-bearing liabilities , which account for around 31 % of the Group ’ s balance sheet total
CONTROL ENVIRONMENT The foundations of the internal control in relation to the financial reporting consist of the general control environment with organization , decision-making paths , authority and responsibilities that have been documented and communicated . Within New Wave Group some of the most important constituent parts of the control environment are documented in the form of policies , e . g . IT policy , financial policy , environmental policy and instructions , such as authorization instructions and a reporting manual .
CONTROL ACTIVITIES In order to ensure the internal control works , there are both automatic controls in IT based systems , which handle authority and authorization rights , and also manual controls in the form of e . g . reconciliations and physical counts . Detailed economic analyses of the result plus follow-up of plans and forecasts supplement the controls and provide a general confirmation of the quality of the reporting .
The Group performs reviews of the companies ’ routines and accounting methods , which are reported to Group management . No CEO is permitted to appoint or dismiss a finance manager , and finance managers ’ report directly to the Group ’ s CFO . The Group ’ s risks with regard to financial reporting lay in the risk that material misstatements may occur when reporting the company ’ s status and financial results . The company ’ s accounting instructions and manuals , together with established follow up routines , serve to minimize these risks .
INFORMATION & COMMUNICATION The most important control documents in the form of policies and instructions are updated regularly and communicated via relevant channels electronically and / or in printed form . For communication with external parties , there is an information policy which specifies guidelines for how this communication should take place . The purpose of the policy is to ensure that all information obligations are fulfilled correctly and in full .
FOLLOW-UP Finance personnel and management at company and Group level analyze the financial reporting in detail every month . The Group ’ s central support staff is responsible for implementing , further developing and maintaining the Group ’ s control routines , and for performing internal controls of business critical matters . New Wave Group ’ s privatized structure involves a controllerbased organization , which is responsible for ensuring that financial reporting from each unit is correct , complete and on time . The controls in respect of the various processes and risk elements are evaluated by means of self-assessment , internal Board meetings and via the company ’ s external auditors . Most processes are fully or partly centralized at Group level , such as purchasing , logistics , payments , financing , IT , the consolidation and compilation of Group reports . The Board receives financial reports on an ongoing basis , and at each Board meeting they discuss the financial situation facing the Group and the various companies . During the year the Board has also received reports from the company ’ s auditors detailing their observations .
THE COMPANIES New Wave Group ’ s organization is decentralized , with a high degree of independence and self-determination being delegated to company management . The objective is for the companies to be run in an entrepreneurial spirit , while at the same time enjoying the benefits of belonging to a large group of companies . The Group therefore consists of a large number of operational companies , approximately 50 in total , some of which belong to sub-groups . Board meetings are held about three times a year in each company or sub-group . The composition of the Boards depends on the company ’ s direction and its stage of development . In addition to Group management , the expertise of CEO s in “ mature ” companies is utilized on the Boards of local subsidiaries . The organizational model chosen by New Wave Group provides for effective benchmarking of profitability , tied-up capital and growth between companies , brands and markets .
INTERNAL AUDITING
In February 2017 , an Audit Committee ( AC ) was formed . The Group has developed control and internal control systems , with business controllers at different levels within the companies , responsible for following up compliance on a regular basis . The Board ’ s methods of monitoring the companies ' assessment of the internal control include contact with the companies ' auditors and as from February 2017 also the audit committee .
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