BT 2014 Annual Report Download - page 180

177
Financial statements
Financial statements
Report of the independent auditors to the members of BT Group plc (the ‘company’)
Report on the parent company nancial statements
Our opinion
In our opinion the parent company nancial statements, dened below
• give a true and fair view of the state of the parent company’s aairs as
at 31 March 2014
• have been properly prepared in accordance with United Kingdom
Generally Accepted Accounting Practice and
• have been prepared in accordance with the requirements of the
Companies Act 2006.
This opinion is to be read in the context of what we say in the remainder
of this report.
What we have audited
The parent company nancial statements, which are prepared by
BT Group plc, comprise
• the parent company balance sheet as at 31 March 2014
• the parent company reconciliation of movement in equity
shareholders’ funds for the year then ended and
• the notes to the parent company nancial statements, which include
a summary of signicant accounting policies and other explanatory
information.
The nancial reporting framework that has been applied in their
preparation comprises applicable law and United Kingdom Accounting
Standards (United Kingdom Generally Accepted Accounting Practice).
In applying the nancial reporting framework, the directors have made
a number of subjective judgements, for example in respect of signicant
accounting estimates. In making such estimates, they have made
assumptions and considered future events.
Certain disclosures required by the nancial reporting framework have
been presented elsewhere in the Annual Report & Form 20-F 2014
(the Annual Report’), rather than in the notes to the nancial
statements. These are cross-referenced from the nancial statements
and are identied as audited.
What an audit of Ƭnancial statements involves
We conducted our audit in accordance with International Standards
on Auditing (UK and Ireland) (ISAs (UK & Ireland)’). An audit involves
obtaining evidence about the amounts and disclosures in the nancial
statements sucient to give reasonable assurance that the nancial
statements are free from material misstatement, whether caused by
fraud or error. This includes an assessment of
• whether the accounting policies are appropriate to the parent
company’s circumstances and have been consistently applied and
adequately disclosed
• the reasonableness of signicant accounting estimates made by
the directors and
• the overall presentation of the nancial statements.
In addition, we read all the nancial and non-nancial information in
the Annual Report to identify material inconsistencies with the audited
parent company nancial statements and to identify any information
that is apparently materially incorrect based on, or materially inconsistent
with, the knowledge acquired by us in the course of performing the
audit. If we become aware of any apparent material misstatements or
inconsistencies we consider the implications for our report.
Opinions on matters prescribed by the Companies Act 2006
In our opinion
• The information given in the Strategic Report and the Report of the
Directors for the nancial year for which the parent company nancial
statements are prepared is consistent with the parent company
nancial statements.
• The part of the Report on Directors’ Remuneration to be audited has
been properly prepared in accordance with the Companies Act 2006.
Other matters on which we are required to report
by exception
Adequacy of accounting records and information
and explanations received
Under the Companies Act 2006 we are required to report to you if,
in our opinion
• we have not received all the information and explanations we require
for our audit or
• adequate accounting records have not been kept by the parent
company, or returns adequate for our audit have not been received
from branches not visited by us or
• the parent company nancial statements and the part of the Report
on Directors’ Remuneration to be audited are not in agreement with
the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Directors’ remuneration
Under the Companies Act 2006 we are required to report to you if,
in our opinion, certain disclosures of directors’ remuneration specied
by law have not been made. We have no exceptions to report arising
from this responsibility.
Other information in the Annual Report
Under ISAs (UK & Ireland), we are required to report to you if, in our
opinion, information in the Annual Report is
• materially inconsistent with the information in the audited parent
company nancial statements or
• apparently materially incorrect based on, or materially inconsistent
with, our knowledge of the parent company acquired in the course
of performing our audit or
• is otherwise misleading.
We have no exceptions to report arising from this responsibility.
Responsibilities for the nancial statements and the audit
Our responsibilities and those of the directors
As explained more fully in the Statement of directors’ responsibilities
set out on page 111, the directors are responsible for the preparation
of the parent company nancial statements and for being satised that
they give a true and fair view.
Our responsibility is to audit and express an opinion on the parent
company nancial statements in accordance with applicable law and
ISAs (UK & Ireland). Those standards require us to comply with the
Auditing Practices Board’s Ethical Standards for Auditors.
This report, including the opinions, has been prepared for and only for
the Company’s members as a body in accordance with Chapter 3 of
Part 16 of the Companies Act 2006 and for no other purpose. We do
not, in giving these opinions, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown or
into whose hands it may come save where expressly agreed by our prior
consent in writing.
Other matter
We have reported separately on the group nancial statements of
BT Group plc for the year ended 31 March 2014.
Paul Barkus (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
7 May 2014