Annual report 2010 - Dexia.com

Dexia SAStatutory Auditor’s report for theyear ended 31 December 2010to the Shareholders’ MeetingTo the shareholdersAs required by law and the company’s articles of association,we are pleased to report to you on the audit assignment whichyou have entrusted to us. This report includes our opinion onthe financial statements together with the required additionalcomments.Unqualified audit opinion onthe financial statements, withexplanatory paragraphWe have audited the financial statements of Dexia SA for theyear ended 31 December 2010, prepared in accordance withthe accounting principles applicable in Belgium, which showtotal assets of 23,397,851,600 EUR and a loss for the year of5,188,206,600 EUR.and disclosures in the financial statements. The proceduresselected depend on our judgment, including the assessmentof the risks of material misstatement of the financialstatements, whether due to fraud or error. In making thoserisk assessments, we have considered internal control relevantto the company’s preparation and fair presentation of thefinancial statements in order to design audit proceduresthat are appropriate in the circumstances but not for thepurpose of expressing an opinion on the effectiveness of thecompany’s internal control. We have assessed the basis of theaccounting policies used, the reasonableness of accountingestimates made by the company and the presentation ofthe financial statements, taken as a whole. Finally, the Boardof Directors and responsible officers of the company havereplied to all our requests for explanations and information.We believe that the audit evidence that we have obtainedprovides a reasonable basis for our opinion.Management reportConsolidatedfinancial statementsThe Board of Directors of the company is responsible for thepreparation of the financial statements. This responsibilityincludes among other things: designing, implementing andmaintaining internal control relevant to the preparationand fair presentation of financial statements that are freefrom material misstatement, whether due to fraud or error,selecting and applying appropriate accounting policies, andmaking accounting estimates that are reasonable in thecircumstances.Our responsibility is to express an opinion on these financialstatements based on our audit. We conducted our audit inaccordance with legal requirements and auditing standardsapplicable in Belgium, as issued by the “Institut des Réviseursd’Entreprises/Instituut van de Bedrijfsrevisoren”. Thosestandards require that we plan and perform the audit toobtain reasonable assurance whether the financial statementsare free from material misstatement.In accordance with these standards, we have performedprocedures to obtain audit evidence about the amountsIn our opinion, the financial statements as of 31 December2010 give a true and fair view of the company’s assets,liabilities, financial position and results in accordance with theaccounting principles applicable in Belgium.Despite the fact that the company has incurred significantlosses over the last two years that impact its financial position,the financial statements have been drafted using the goingconcern principle. This assumption is only justified to theextent that the results of Dexia Group continue to demonstratea sustainable recovery and taking into account the level of theshareholders’ equity of the company at closing date.Without modifying the above unqualified opinion, wedraw your attention to the notes to the annual financialstatements, in which the Board of Directors, in accordancewith Belgian legal requirements, justifies the applicationof the going concern principle. No adjustments have beenrecorded with respect to the valuation or the classification ofcertain balance-sheet items, which would be required, shouldthe Group no longer be able to continue its operations.Additional information Annual financial statementsAnnual report 2010 Dexia259