APC 2012 Annual Report Download - page 231

2012 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 229
CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER31, 2012
5
STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATEDFINANCIALSTATEMENTS
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6. Statutory Auditors’ report on the
consolidatedfinancialstatements
To the S hareholders,
In compliance w ith the assignment entrusted to us by your Annual
Shareholders’ Meeting, we hereby report to you, for the year ended
December31, 2012, 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 Management 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 requi re 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 consolidated 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 Group as at D ecember31, 2012 and of the results of its
operations for the year then ended in accordance with International
Financial Reporting Standards as adopted by the European Union.
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 1.2 to the consolidated fi nancial statements outlines the
impact of the correction of error relating to the recognition of
customer rebates accrual and the restatement of comparative
information for the year ended December31, 2011 conducted in
application of IAS8 “Accounting Policies, Changes in Accounting
Estimates and Errors”. We examined the elements relating to this
restatement and verifi ed the appropriateness of the disclosures
provided in the notes to the consolidated fi nancial statements;
•note 1.9 to the consolidated fi nancial statements outlines the
method for recognizing research and development costs and
describes the criteria under which development costs may
be capitalized. We reviewed the data and assumptions used
to identify projects that qualify for capitalization, 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, your Group carries out intangible assets and
goodwill impairment tests at least once a year and when factors
exist indicating that the related assets may have suffered a loss
of value. We analyzed, on a test basis, the indicators of a loss of
value and the other information evidencing the absence of any
loss of value. 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 utilization of tax
loss carry forwards are recognized only when they can reasonably
be expected to be realized. We verifi ed the reasonableness of the
assumptions used to produce estimate of future taxable income
used to support assessments of the recoverability of these
deferred tax assets;
This is a free translation into English of the Statutory Auditors’ report on the consolidated fi nancial statements issued in French and it is pro vided
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 management report and in the documents
addressed to shareholders.
This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards applicable
in France.