French Commercial code
In forcePRINCIPAL CONTROL OPERATIONS WITH A VIEW TO CONTROLLING THE FIGURED CHARACTERISTICS OF TRADE EVENTS
(Annex XIII of Annex 7-10 of Book Seven of the Decree section of the French Commercial Code)
I. - General principles
With a view to checking the numerical characteristics of commercial events, the body carries out the following two types of check:
- first-level check: accounting-type check of documents communicated by the event organiser;
- second-level check: consistency check between the results of the first-level check and the numerical characteristics usually observed by the profession for this type of event.
For these checks, the body:
- complies with the regulatory definitions in force;
- uses, to carry out the second level check, only the official figures published by the ministry responsible for trade.
The body follows the following steps:
1. Registration of the prior application from the event organiser;
2. Collection of the event's numerical characteristics from the organiser;
3. First-level control of the data collected;
4. Drawing up a provisional report based on the results of the first-level check;
5. Second-level control of the data collected;
6. Drawing up of a final report-validating the numerical characteristics of the event-on the basis of the results of the second-level check.
The body responsible for checking the figures for commercial events collects from the event organiser the documents and information required for these operations, and in particular:
- accounting documents: invoices, account statements relating to income from exhibitors, ticket sales and advance sales;
- figures declared by the organiser after the event (press release....);
- any documents it deems useful;
- exhibitors' registration files mentioning rates, surface areas occupied and amounts invoiced;
- layout plan of the event ;
- where applicable, catalogue of the event and its addenda;
- list of exhibitors (contact details, surface areas occupied, amounts invoiced by type of service provided and, where applicable, nationality) ;
- list breaking down exhibitors into main exhibitors and co-exhibitors;
- where applicable, list breaking down exhibitors into French and foreign exhibitors;
- net areas allocated to entertainment or presentations related to the theme of the event;
- the total surface area, known as the gross surface area, rented by the site manager to the event organiser;
- ticket stubs checked at the entrance to the event, classified by category;
- number of visitors registered in advance and who actually visited the event and number of visitors registered at the entrance to the event ;
- invoice for the issue of admission tickets showing serial numbers;
- if applicable, bailiff's report of destruction of ticketing ;
- for an event whose visitors are recorded by an external service provider of the organiser, the certified true and correct document attesting to the number of visitors checked;
- the number of badges allocated by the organiser to exhibitors' staff.
II. - Control procedures
A. - First level control
This is an accounting type control, based on documents, either on site at the event organiser's premises or on the basis of documents sent by the organiser. It covers:
1. The number of exhibitors:
- reconciliation of the number of exhibitors checked with the list of exhibitors provided by the organiser;
- reconciliation of the data mentioned in the exhibitors' registration files (surface areas occupied and amounts invoiced) with those in the list of exhibitors and with the layout plan of the event;
- reconciliation of the rental rates recorded with the rates mentioned on the registration forms as well as on a random sampling of invoices issued;
- reconciliation of the amount of income from stand rental with the account statements relating to income relating to exhibitors;
- reconciliation of the list of co-exhibitors checked with the certificates of the main exhibitors providing accommodation.
2. On the number of visitors:
For visitors with a ticket purchased at the event ticket offices or in advance:
- reconciliation of the price mentioned in the provisional minutes with that shown on the tickets;
- reconciliation of the amount of revenue mentioned in the provisional minutes with the account statements relating to revenue from ticket sales and advance sales;
- reconciliation of the amount of revenue mentioned in the provisional minutes with the number of ticket stubs checked classified by category.
For visitors with a ticket obtained from the event organiser, an exhibitor or a third party:
- reconciliation of the ticket publisher's invoice with the number of tickets issued mentioned in the provisional minutes;
- reconciliation of the various prices with those mentioned in the registration packs;
- reconciliation of the amount of revenue mentioned in the provisional minutes with the statements of account relating to revenue from ticket sales and advance sales;
- reconciliation of the number of tickets issued, sold and not sold and, where applicable, the number mentioned in the bailiff's report of destruction of the ticket office.
For events where the number of visitors is provided by an external service provider of the organiser:
- reconciliation of the information mentioned in the provisional minutes with the certified documents of the external service provider;
- reconciliation of the amount of revenue mentioned in the provisional minutes with the account statements relating to revenue from ticket sales and advance sales.
B. - Additional first-level inspection
In the absence of any hypothesis of anomaly, the inspection body carries out a double first-level inspection of the numerical characteristics of certain events chosen by random sampling (at least one event out of forty).
C. - Second level check
The second level check identifies significant discrepancies that justify additional information from the organiser. It is carried out by processing and comparing the figures from the first-level checks by calculating the following ratios (in absolute values):
- net surface area of the event divided by the gross surface area of the event: this ratio is generally less than or equal to 2/3;
- net surface area of stands divided by the number of exhibitors: this ratio is generally greater than or equal to 6 square metres;
- number of admissions divided by the gross surface area of the event divided by the number of days the event is open to the public: this ratio is generally less than 1 visit/sq.m/day;
- numerical characteristics of the session checked with those of previous sessions of the event. A variation of more than 10% compared with the previous session constitutes a significant difference; this variation must nevertheless also be assessed over several sessions;
- numerical characteristics of the session checked with those of previous sessions in the same sector and for the same type of event (as defined in article 2 of decree no. 2006-85 of 27 January 2006). A significant deviation is a variation greater than the standard deviation observed in the same sector and for the same type of event in the following ratios:
- average stand area = total area occupied by exhibitors divided by the number of exhibitors;
- average number of visits per exhibitor per day = number of visits divided by the number of exhibitors, divided by the number of days the event is open.
