REUTERS GROUP PLC ANNUAL REPORT AND ACCOUNTS 1999

Auditors’ report to the members of Reuters Group PLCAUDIT REPORTWe have audited the financial statements onpages 44–74, incorporating pages 24–30which have been prepared under the historicalcost convention and the accounting policiesset out on pages 73–74, and the summary ofdifferences between UK and US GenerallyAccepted Accounting Principles on pages75–77.RESPECTIVE RESPONSIBILITIES OFDIRECTORS AND AUDITORSThe directors are responsible for preparingthe annual report as described on page 31.This includes responsibility for preparingfinancial statements in accordance withapplicable United Kingdom accountingstandards. Our responsibilities, asindependent auditors, are established in theUnited Kingdom by statute, the AuditingPractices Board, the Listing Rules of theLondon Stock Exchange and our profession’sethical guidance.We report to you our opinion as to whetherthe financial statements give a true and fairview and are properly prepared in accordancewith the United Kingdom Companies Act1985. We also report to you if, in our opinion,the directors’ report is not consistent with thefinancial statements, if the company has notkept proper accounting records, if we havenot received all the information andexplanations we require for our audit, or ifinformation specified by law or the ListingRules regarding directors’ remuneration andtransactions is not disclosed.We read the other information contained in theannual report and consider the implicationsfor our report if we become aware of anyapparent misstatements or materialinconsistencies with the financial statements.We review whether the statement on pages22–23 reflects the company’s compliancewith the seven provisions of the CombinedCode specified for our review by the LondonStock Exchange and we report if it does not.We are not required to consider whether theBoard’s statements on internal control coverall risks and controls, or to form an opinionon the effectiveness of the group’s corporategovernance procedures or its risk and controlprocedures.BASIS OF AUDIT OPINIONWe conducted our audit in accordance withAuditing Standards issued by the AuditingPractices Board and with Auditing Standardsgenerally accepted in the United States. Anaudit includes examination, on a test basis,of evidence relevant to the amounts anddisclosures in the financial statements. It alsoincludes an assessment of the significantestimates and judgements made by thedirectors in the preparation of the financialstatements, and of whether the accountingpolicies are appropriate to the company’scircumstances, consistently applied andadequately disclosed.We planned and performed our audit so as toobtain all the information and explanationswhich we considered necessary in order toprovide us with sufficient evidence to givereasonable assurance that the financialstatements are free from materialmisstatement, whether caused by fraud orother irregularity or error. In forming ouropinion we also evaluated the overalladequacy of the presentation of informationin the financial statements.UNITED KINGDOM OPINIONIn our opinion, the financial statements give atrue and fair view of the state of affairs of thecompany and the group as at 31 December1999 and of the profit and cash flows of thegroup for the year then ended and have beenproperly prepared in accordance with theUnited Kingdom Companies Act 1985.UNITED STATES OPINIONIn our opinion, the financial statementspresent fairly, in all material respects, thefinancial position of the group at 31December 1999, 1998 and 1997 and theresults of its operations and cash flows foreach of the three years in the period ended 31December 1999 all expressed in poundssterling in conformity with accountingprinciples generally accepted in the UnitedKingdom.Accounting principles generally accepted inthe United Kingdom vary in certainsignificant respects from accountingprinciples generally accepted in the UnitedStates. The application of the latter wouldhave affected the determination ofconsolidated net income for each of the threeyears in the period ended 31 December 1999,and consolidated shareholders’ equity at31 December 1999, 1998 and 1997, allexpressed in pounds sterling, as shown in thesummary of differences between UK and USGenerally Accepted Accounting Principles setout on pages 75–77.PricewaterhouseCoopersChartered Accountants andRegistered AuditorsLondon11 February 200032 Reuters Group PLC Annual Report 1999