The Management Board of Grupa LOTOS S.A. is responsible for the internal control function and its effective application in the financial reporting process. The Internal Audit Office of Grupa LOTOS S.A. makes an annual assessment of the internal control framework. Its findings show that in 2021 there were no changes in the internal control system that would affect the financial reporting process. Taking into account the assumptions adopted in assessing the systems, the Company has put in place organisational and process solutions making up the internal control, corporate governance, compliance and risk management framework. The solutions set out in the assessment model (good business practices) have been implemented in each of the systems and are applied in practice.
Financial statements are prepared, approved and released to the public in line with an internal procedure, whereunder oversight of the financial reporting process lies within the remit of the Head of the Finance and Accounting Centre’s Office, Chief Accountant. Responsibility for preparing the consolidated and separate financial statements lies with the Financial Reporting Office of Grupa LOTOS S.A.
The LOTOS Group’s consolidated financial statements and Grupa LOTOS S.A.’s separate financial statements have been prepared in accordance with the International Financial Reporting Standards (“IFRSs”) endorsed by the European Union, issued and effective as at December 31st, 2021.
The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRSs), based on the financial statements of Grupa LOTOS S.A. and the entities controlled by Grupa LOTOS S.A.
Consolidated financial statements include adjustments which are absent from the accounting books of the Group’s entities applying accounting standards other than IFRSs, and which have been introduced to ensure consistency of the entities’ financial information with the IFRSs.
In order to ensure accounting uniformity, the accounting policies effective at the Company were implemented across the LOTOS Group companies for application in preparing their consolidation packages.