APC 2015 Annual Report Download - page 251

2015 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 249
CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER31,2015
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STATUTORY AUDITORS’ REPORT ONTHE CONSOLIDATED FINANCIAL STATEMENTS
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6. Statutory auditors’ report onthe
consolidated financial statements
This is a free translation into 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.
To the s hareholders,
In compliance with the assignment entrusted to us by your A nnual
Shareholder’s M eeting, we hereby report to you, for the year ended
December 31, 2015, on:
•the audit of the accompanying consolidated fi nancial statements
of Schneider Electric S.E.;
•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 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 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 December 31, 2015 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 C ommercial C ode (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 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 asset 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. 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
supporting assessments of the recoverability of these deferred
tax assets;
•notes 1.19 and 22 to the consolidated fi nancial statements
describe the method for valuing pensions and other post-
employment obligations. Actuarial valuations were performed
for these commitments. We reviewed the data, the assumptions
used and calculations made, and verifi ed that adequate disclosure
is made in the notes to the consolidated fi nancial statements;