Electronic Arts 2008 Annual Report Download - page 184

Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Not applicable.
Item 9A: Controls and Procedures
Definition and Limitations of Disclosure Controls
Our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) are controls and other procedures that are designed
to ensure that information required to be disclosed in our reports filed under the Exchange Act, such as this
report, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules
and forms. Disclosure controls and procedures are also designed to ensure that such information is
accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial
Officer, as appropriate to allow timely decisions regarding required disclosure. Our management evaluates
these controls and procedures on an ongoing basis.
There are inherent limitations to the effectiveness of any system of disclosure controls and procedures. These
limitations include the possibility of human error, the circumvention or overriding of the controls and
procedures and reasonable resource constraints. In addition, because we have designed our system of controls
based on certain assumptions, which we believe are reasonable, about the likelihood of future events, our
system of controls may not achieve its desired purpose under all possible future conditions. Accordingly, our
disclosure controls and procedures provide reasonable assurance, but not absolute assurance, of achieving their
objectives.
Evaluation of Disclosure Controls and Procedures
Our Chief Executive Officer and our Chief Financial Officer, after evaluating the effectiveness of our
disclosure controls and procedures, believe that as of the end of the period covered by this report, our
disclosure controls and procedures were effective in providing the requisite reasonable assurance that material
information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded,
processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and is
accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial
Officer, as appropriate to allow timely decisions regarding the required disclosure.
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial
reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act.
Our internal control over financial reporting is designed to provide reasonable, but not absolute, assurance
regarding the reliability of financial reporting and the preparation of financial statements in accordance with
generally accepted accounting principles. There are inherent limitations to the effectiveness of any system of
internal control over financial reporting. These limitations include the possibility of human error, the
circumvention or overriding of the system and reasonable resource constraints. Because of its inherent
limitations, our internal control over financial reporting may not prevent or detect misstatements. Projections
of any evaluation of effectiveness to future periods are subject to the risks that controls may become
inadequate because of changes in conditions, or that the degree of compliance with our policies or procedures
may deteriorate.
Our management assessed the effectiveness of our internal control over financial reporting as of the end of our
most recently completed fiscal year. We have excluded from our evaluation of our internal control over
financial reporting the internal control over financial reporting of VG Holding Corp (“VGH”), which we
acquired on January 4, 2008. As of March 31, 2008, total assets, excluding goodwill and acquired intangible
assets, subject to VGH’s internal control over financial reporting represented 2 percent of our consolidated
total assets. For the period from January 4, 2008 through March 31, 2008, total net revenue subject to VGH’s
internal control over financial reporting represented less than 1 percent of our consolidated net revenue. In
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