REUTERS GROUP PLC ANNUAL REPORT AND ACCOUNTS 1999

Statement of directors’ responsibilitiesReuters directors are required by UKcompany law to prepare financial statementsfor each financial year which give a true andfair view of the state of affairs of thecompany and group as at the end of thefinancial year, and of the profit and cash flowsof the group for the period. Reuters is alsorequired to prepare financial statements inaccordance with the requirements of the SEC.Reuters has complied with both UK and USdisclosure requirements in this report in orderto present a consistent picture to allshareholders. In preparing the financialstatements, applicable accounting standardshave been followed, suitable accountingpolicies have been used and appliedconsistently and reasonable and prudentjudgements and estimates have been made.The directors have reviewed the group’sbudget and cash flow forecast for the year to31 December 2000 and outline projectionsfor the subsequent year in the light of thesound financial position and borrowingfacilities at 31 December 1999. On the basisof this review the directors are satisfied thatReuters is a going concern and havecontinued to adopt the going concern basis inpreparing the financial statements.not aware of any such breakdowns whichresulted in a material loss.The group monitors its internal financialcontrol system through management reviews,detailed representation letters on compliancesigned by the chief executive and chieffinancial officer of each significant businessunit and a programme of internal audits.The group’s external auditors,PricewaterhouseCoopers, have audited thefinancial statements and have reviewed thework of the internal auditors and the internalfinancial control systems to the extent theyconsidered necessary to support their auditreport. The Audit Committee has met theinternal auditors andPricewaterhouseCoopers to discuss theresults of their work.By order of the BoardRosemary MartinCompany Secretary11 February 2000As explained on page 23, for 1999 the Boardis reporting on internal financial control. Thedirectors acknowledge their responsibility forthe group’s system of internal financialcontrol and confirm that they have reviewedits effectiveness. They consider that it isappropriately designed to provide reasonablebut not absolute assurance that assets aresafeguarded against material loss orunauthorised use and that transactions areproperly authorised and recorded. Theconcept of reasonable assurance recognisesthat the cost of a control procedure shouldnot exceed the expected benefits. The controlsystem includes written accounting andcontrol policies and procedures, clearlydrawn lines of accountability and delegationof authority and comprehensive financialreporting and analysis against approvedbudgets. In a growing group of the size,complexity and geographical diversity ofReuters it should be expected thatbreakdowns in established control proceduresmay occur. During 1999 the directors wereReuters Group PLC Annual Report 1999 31