RBS 2010 Annual Report Download - page 269

We have audited the financial statements of The Royal Bank of Scotland
Group plc (the "company") and its subsidiaries (together the "Group") for
the year ended 31 December 2010 which comprise the accounting
policies, the balance sheets as at 31 December 2010, the consolidated
income statement, the consolidated statement of comprehensive income,
the statements of changes in equity and the cash flow statements for the
year ended 31 December 2010, the related Notes 1 to 44 and the
information identified as 'audited' in the Risk and balance sheet
management section of the Business review. The financial reporting
framework that has been applied in their preparation is applicable law
and International Financial Reporting Standards (IFRS) as adopted by
the European Union and, as regards the company financial statements,
as applied in accordance with the provisions of the Companies Act 2006.
This report is made solely to the company’s members, as a body, in
accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our
audit work has been undertaken so that we might state to the company's
members those matters we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we
do not accept or assume responsibility to anyone other than the company
and the company's members as a body, for our audit work, for this report,
or for the opinions we have formed.
Respective responsibilities of directors and auditor
As explained more fully in the Statement of directors' responsibilities, the
directors are responsible for the preparation of the financial statements
and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial
statements in accordance with applicable law and International Standards
on Auditing (UK and Ireland). Those standards require us to comply with
the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures
in the financial statements sufficient to give reasonable assurance that
the financial statements are free from material misstatement, whether
caused by fraud or error. This includes an assessment of: the
reasonableness of significant accounting estimates made by the directors
in the preparation of the financial statements; whether the accounting
policies are appropriate to the circumstances of the company and the
Group and have been consistently applied and adequately disclosed; and
the overall presentation of the financial statements.
Opinion
In our opinion:
xthe financial statements give a true and fair view of the state of the
Group's and of the company’s affairs as at 31 December 2010 and
of the Group’s loss for the year then ended;
xthe Group financial statements have been properly prepared in
accordance with IFRS as adopted by the European Union;
xthe company financial statements have been properly prepared in
accordance with IFRS as adopted by the European Union and as
applied in accordance with the provisions of the Companies Act
2006; and
xthe financial statements have been prepared in accordance with the
requirements of the Companies Act 2006 and, as regards the Group
financial statements, Article 4 of the IAS Regulation.
Separate opinion in relation to IFRS as issued by the IASB
As explained in the accounting policies, the Group has prepared financial
statements that comply with IFRS as adopted by the European Union,
and with IFRS as issued by the International Accounting Standards Board
(IASB).
In our opinion the Group financial statements comply with IFRS as issued
by the IASB.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion:
xthe part of the Directors' remuneration report described as having
been audited has been properly prepared in accordance with the
Companies Act 2006; and
xthe information given in the Report of the directors for the financial
year for which the financial statements are prepared is consistent
with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report to you if, in our
opinion:
xadequate accounting records have not been kept by the company,
or returns adequate for our audit have not been received from
branches not visited by us; or
xthe company financial statements and the part of the Directors'
remuneration report described as having been audited are not in
agreement with the accounting records and returns; or
xcertain disclosures of directors' remuneration specified by law are
not made; or
xwe have not received all the information and explanations we
require for our audit.
Under the Listing Rules we are required to review:
xthe directors' statement contained within the Report of the directors
in relation to going concern;
xthe part of the corporate governance statement relating to the
company's compliance with the nine provisions of the June 2008
Combined Code specified for our review; and
xcertain elements of the Directors’ remuneration report.
Kari Hale (Senior Statutory Auditor)
for and on behalf of Deloitte LLP
Chartered Accountants and Statutory Auditor
London, United Kingdom
23 February 2011
267RBS Group 2010
Financial statements
Independent auditor’s report
to the members of The Royal Bank of Scotland Group plc