DuPont 2005 Annual Report Download - page 54

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Part II
Item 7A. Quantitative and Qualitative Disclosures About Market Risk–Continued
The table above represents the VaR potential loss in fair value when each risk management portfolio is valued individually. The
changes in portfolio VaRs in 2005 as compared to 2004 are due to changes in portfolio size, price volatility and, for interest
rates, higher short-term rates and a flatter yield curve. The VaR model results are only an estimate and are not intended to
forecast actual losses that may be incurred in future periods.
Since the company’s risk management programs are highly effective, the potential loss in value for each risk management
portfolio described above would be largely offset by changes in the value of the underlying exposures.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The financial statements and supplementary data required by this Item are included herein, commencing on page F-1 of this
report.
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
Item 9A. CONTROLS AND PROCEDURES
The company maintains a system of disclosure controls and procedures for financial reporting to give reasonable assurance
that information required to be disclosed in the company’s reports submitted under the Securities Exchange Act of 1934 is
recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. These
controls and procedures also give reasonable assurance that information required to be disclosed in such reports is accumu-
lated and communicated to management to allow timely decisions regarding required disclosures.
As of December 31, 2005, the company’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO), together with
management, conducted an evaluation of the effectiveness of the company’s disclosure controls and procedures pursuant to
Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Based on that evaluation, the CEO and CFO concluded that these disclosure
controls and procedures are effective.
There has been no change in the company’s internal control over financial reporting that occurred during the fourth quarter
2005 that has materially affected the company’s internal control over financial reporting. The company has completed its
evaluation of its internal controls versus the standards adopted by the Public Company Accounting Oversight Board (PCAOB)
and has concluded that the company’s system of internal controls was effective as of December 31, 2005 (see page F-2).
The company continues to take appropriate steps to enhance the reliability of its internal control over financial reporting.
Management has discussed with the company’s Audit Committee and independent registered public accounting firm areas
identified for improvement.
Item 9B. OTHER INFORMATION
None.
54