APC 2009 Annual Report Download - page 183

2009 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 181
CONSOLIDATED FINANCIAL STATEMENTS
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STATUTORY AUDITORS’ REPORT ONTHECONSOLIDATED FINANCIAL STATEMENTS
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6. Statutory A uditors’ r eport
on thec onsolidated f inancial
s tatements
To the Shareholders,
In compliance with the assignment entrusted to us by your Annual
Shareholders’ Meeting, we hereby report to you, for the year ended
December 31, 2009, on:
•the audit of the accompanying consolidated fi nancial statements
of Schneider Electric SA;
•the justifi cation of our assessments;
•the specifi c verifi cation required by law.
These consolidated fi nancial statements have been approved by
the Executive Board. Our role is to express an opinion on these
consolidated fi nancial statements based on our audit.
I. Opinion on the consolidated
financial statements
We conducted our audit in accordance with professional standards
applicable in France; those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
consolidated fi nancial statements are free of material misstatement.
An audit involves performing procedures, using sampling techniques
or other methods of selection, to obtain audit evidence about the
amounts and disclosures in the fi nancial statements. An audit also
includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made, as well as
the overall presentation of the consolidated fi nancial statements. We
believe that the audit evidence we have obtained is suffi cient and
appropriate to provide a basis for our audit opinion.
In our opinion, the consolidated fi nancial statements give a true and
fair view of the assets and liabilities and of the fi nancial position of
the Company as at December 31, 2009 and of the results of its
operations for the year then ended in accordance with IFRS, as
adopted by the European Union.
Without qualifying our opinion, we draw your attention to the matter
set out in notes1.1 “Accounting standards” – paragraph2 to the
consolidated fi nancial statements which relates to the presentation
of operating segments and 1.2 “Changes in accounting method”.
II. Justification of our assessments
In accordance with the requirements of articleL.823-9 of the French
Commercial Code (Code de Commerce) relating to the justifi cation
of our assessments, we bring to your attention the following matters:
•note 1.9 to the consolidated fi nancial statements explains the
method for recognising research and development costs and
describes the criteria under which development costs may be
capitalised . We reviewed the data and assumptions used to
identify development costs that qualify for capitalisation , as well
as the Group’s calculations, and verifi ed that adequate disclosure
is made in the notes to the consolidated fi nancial statements;
•as explained in notes1.11 and 8 to the consolidated fi nancial
statements, intangible assets and goodwill are tested for
impairment at least once a year and when factors exist indicating
that the related assets may have suffered a loss of value. We
reviewed, on a test basis, the indicators of a loss of value and
the other information evidencing the absence of any loss of value
other than those indicated in note 8. We reviewed the data,
assumptions used, and calculations made, and verifi ed that
adequate disclosure is made in the notes to the consolidated
fi nancial statements;
•as indicated in notes1.16 and 16 to the consolidated fi nancial
statements, future tax benefi ts arising from the utilisation of tax
loss carry forwards are recognised only when they can reasonably
be expected to be realized. We verifi ed the reasonableness of
the assumptions used to produce the estimate of future taxable
income used to support assessments of the recoverability of
these deferred tax assets;
•notes 1.19 and 22 describe the method for valuing pensions
and other post-employment obligations. Actuarial valuations
were performed for these commitments. We reviewed the data,
assumptions used, and calculations made, and verifi ed that
adequate disclosure is made in the notes to the consolidated
fi nancial statements.
•note7 “Restructuring costs” states the amount of restructuring
costs recorded in 2009. We verifi ed that, based on currently
available information, these costs concern restructuring measures
initiated or announced before December 31, 2009, for which
provisions have been recorded based on an estimate of the costs
to be incurred. We also reviewed the data and assumptions used
by the Group to make these estimates;
This is a free translation in English of the statutory auditors’ report on the consolidated fi nancial statements issued in French and it is
provided solely for the convenience of English-speaking users.
The statutory auditors’ report includes information specifi cally required by French law in such reports, whether modifi ed or not. This
information is presented below the audit opinion on the consolidated fi nancial statements and includes an explanatory paragraph
discussing the auditors’ assessments of certain signifi cant accounting and auditing matters. These assessments were considered for
the purpose of issuing an audit opinion on the consolidated fi nancial statements taken as a whole and not to provide separate assurance
on individual account balances, transactions, or disclosures.
This report also includes information relating to the specifi c verifi cation of information given in the Group’s management report.
This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards
applicable in France.