Tesco 2014 Annual Report Download - page 134

Report on the Parent Company financial statements
Our opinion
In our opinion the Parent Company financial statements, defined below:
• give a true and fair view of the state of the Parent Company’s affairs
as at 22 February 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 financial statements, which are prepared by Tesco PLC,
comprise:
• the Parent Company Balance Sheet as at 22 February 2014; and
• the notes to the Parent Company financial statements, which
include a summary of significant accounting policies and other
explanatory information.
The financial 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 financial reporting framework, the directors have made a
number of subjective judgements, for example in respect of significant
accounting estimates. In making such estimates, they have made
assumptions and considered future events.
Certain disclosures required by the financial reporting framework have
been presented elsewhere in the Annual Report and Financial Statements
(the “Annual Report”) rather than in the notes to the financial statements.
These are cross-referenced from the financial statements and are identified
as audited.
What an audit of financial statements involves
We conducted our audit in accordance with International Standards on
Auditing (UK & Ireland) (“ISAs (UK & Ireland)”). 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:
• whether the accounting policies are appropriate to the Parent
Company’s circumstances and have been consistently applied
and adequately disclosed;
• the reasonableness of significant accounting estimates made by
the directors; and
• the overall presentation of the financial statements.
In addition, we read all the financial and non-financial information in
the Annual Report to identify material inconsistencies with the audited
Parent Company financial 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 other matters prescribed by the Companies Act 2006
In our opinion:
• the information given in the Strategic Report and the Directors’ Report for
the financial year for which the Parent Company financial statements are
prepared is consistent with the Parent Company financial statements; and
• the part of the Directors’ Remuneration Report 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 financial statements and the part of the Directors’
Remuneration Report 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 specified
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 financial 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 financial statements and the audit
Our responsibilities and those of the directors
As explained more fully in the Directors’ Responsibilities Statement set out
on page 64, the directors are responsible for the preparation of the Parent
Company 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 Parent Company
financial 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 financial statements of Tesco PLC
for the 52 weeks ended 22 February 2014.
Mark Gill (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
2 May 2014
Other information
Governance Financial statementsStrategic report
Tesco PLC Annual Report and Financial Statements 2014 131
Independent auditors’ report to the members of Tesco PLC