APC 2006 Annual Report Download - page 171

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1. Presentation . . . . . . . . . . . . . . . . . . . . . .
p. 169
2. Pro forma financial statements . . . . . . .
p. 170
3. Comparison of Schneider Electric
and APC accounting principles . . . . . . .
p. 172
4. Auditors' report on the pro forma
financial statements . . . . . . . . . . . . . . . . .
p. 174
7
Unaudited pro forma
information related to
the 2006 consolidated
financial statements
1. Presentation
The pro forma income statement and balance sheet
data presented below have been prepared as if the
business combination between Schneider Electric and
APC had taken place as of January 1, 2006.
The pro forma data are provided for information only;
they do not purport to be an accurate reflection of the
results that would have been obtained if the transac-
tion had been carried out on January 1, 2006 or to pro-
vide any indication of future results. They should be
read in conjunction with the consolidated financial
statements of Schneider Electric and APC. The pro
forma data were prepared by the Schneider Electric
Finance Department on the basis of reported informa-
tion and the unaudited financial statements of APC for
the year ended December 31, 2006 provided by APC
and available at the time of preparation, using criteria
that were considered as reasonable.The description of
differences between the accounting policies used to
prepare APC’s financial statements and IFRS consists
of a summary of the main identified and applicable dif-
ferences. The available information has not lead to
identify any other adjustment that could significantly
impact the pro forma income statement and balance
sheet data. No assurance is given that a detailed rec-
onciliation of the two groups’ accounting policies would
not reveal any other material reconciling items or
adjustment.
At the time when the pro forma data were prepared,
the Group did not have sufficient information to assess
the effects of the business combination between the
two groups. As a result, the pro forma information does
not take into account the effects of applying IFRS 3
"Business Combinations",
particularly the effect of
amortizing intangible assets recognized on the busi-
ness combination.
169
7