annual-and-sustainability-report-2014

Auditor’s reportAuditor’s reportTo the annual meeting of the shareholders of Vattenfall AB, corporate identitynumber 556036-2138Report on the annual accounts and consolidated accountsWe have audited the annual accounts and consolidated accounts ofVattenfall AB for the year 2014, except for the corporate governance statementon pages 52–61. The annual accounts and consolidated accounts ofthe company are included in the printed version of this document on pages5, 8–9, 45–46, 52–61 and 65–144.Responsibilities of the Board of Directors and the Presidentfor the annual accounts and consolidated accountsThe Board of Directors and the President are responsible for the preparationand fair presentation of these annual accounts in accordance with theAnnual Accounts Act and of the consolidated accounts in accordance withInternational Financial Reporting Standards, as adopted by the EU, and theAnnual Accounts Act, and for such internal control as the Board of Directorsand the President determine is necessary to enable the preparation ofannual accounts and consolidated accounts that are free from materialmisstatement, whether due to fraud or error.Auditor’s responsibilityOur responsibility is to express an opinion on these annual accounts andconsolidated accounts based on our audit. We conducted our audit in accordancewith International Standards on Auditing and generally acceptedauditing standards in Sweden. Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonableassurance about whether the annual accounts and consolidated accountsare free from material misstatement.An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the annual accounts and consolidatedaccounts. The procedures selected depend on the auditor’s judgement,including the assessment of the risks of material misstatement of the annualaccounts and consolidated accounts, whether due to fraud or error. In makingthose risk assessments, the auditor considers internal control relevant tothe company’s preparation and fair presentation of the annual accountsand consolidated accounts in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the company’s internal control. An audit alsoincludes evaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by the Board of Directorsand the President, as well as evaluating the overall presentation of the annualaccounts and consolidated accounts.We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinions.OpinionsIn our opinion, the annual accounts have been prepared in accordance withthe Annual Accounts Act and present fairly, in all material respects, thefinancial position of the parent company as of 31 December 2014 and of itsfinancial performance and its cash flows for the year then ended in accordancewith the Annual Accounts Act. The consolidated accounts have beenprepared in accordance with the Annual Accounts Act and present fairly, inall material respects, the financial position of the group as of 31 December2014 and of their financial performance and cash flows for the year thenended in accordance with International Financial Reporting Standards, asadopted by the EU, and the Annual Accounts Act. Our opinions do not coverthe corporate governance statement on pages 52–61. The statutoryadministration report is consistent with the other parts of the annualaccounts and consolidated accounts.We therefore recommend that the annual meeting of shareholders adoptthe income statement and balance sheet for the parent company and thegroup.Report on other legal and regulatory requirementsIn addition to our audit of the annual accounts and consolidated accounts,we have also audited the proposed appropriations of the company’s profitor loss and the administration of the Board of Directors and the Presidentof Vattenfall AB for the year 2014. We have also conducted a statutoryexamination of the corporate governance statement.Responsibilities of the Board of Directors and the PresidentThe Board of Directors is responsible for the proposal for appropriationsof the company’s profit or loss. The Board of Directors and the Presidentare responsible for administration under the Companies Act and that thecorporate governance statement on pages 52–61 has been prepared inaccordance with the “The Government’s owner policy and guidelines forgovernment owned companies” (Statens ägarpolicy och riktlinjer för företagmed statligt ägande).Auditor’s responsibilityOur responsibility is to express an opinion with reasonable assurance onthe proposed appropriations of the company’s profit or loss and on theadministration based on our audit. We conducted the audit in accordancewith generally accepted auditing standards in Sweden.As a basis for our opinion on the Board of Directors’ proposed appropriationsof the company’s profit or loss, we examined the Board of Directors’reasoned statement and a selection of supporting evidence in order to be ableto assess whether the proposal is in accordance with the Companies Act.As a basis for our opinion concerning discharge from liability, in addition toour audit of the annual accounts and consolidated accounts, we examinedsignificant decisions, actions taken and circumstances of the company inorder to determine whether any member of the Board of Directors or thePresident is liable to the company. We also examined whether any memberof the Board of Directors or the President has, in any other way, acted incontravention of the Companies Act, the Annual Accounts Act or the Articlesof Association.We believe that the audit evidence which we have obtained is sufficient andappropriate in order to provide a basis for our opinions.Furthermore, we have read the corporate governance statement and basedon that reading and our knowledge of the company and the group we believethat we have obtained a sufficient basis for our opinion. This means that ourstatutory examination of the corporate governance statement is differentand substantially less in scope than an audit conducted in accordance withInternational Standards on Auditing and generally accepted auditing standardsin Sweden.OpinionsWe recommend to the annual meeting of shareholders that the profit beappropriated in accordance with the proposal in the statutory administrationreport and that the members of the Board of Directors and the President bedischarged from liability for the financial year.A corporate governance statement has been prepared, in accordancewith the owner policy, and its mandatory statutory content is consistent withthe other parts of the annual accounts and the consolidated accounts.Stockholm, 17 March 2015Ernst & Young ABHamish MabonAuthorised Public AccountantVattenfall Annual and sustainability report 2014 143