Annual Report 2010 - AdP

- verifying consolidation transactions, and the application of the equity method;
- evaluating whether the adopted accounting policies, their consistent use and their disclosure are appropriate
under the circumstances;
- verifying the applicability of the going concern principle; and
- evaluating whether the presentation of the consolidated financial statements is appropriate, in overall terms.
5. We believe that the audit we performed provides an acceptable basis for expressing our opinion.
Opinion
6. In our opinion, the above-mentioned consolidated financial statements truly and adequately represent, in
every material aspect, the consolidated financial position of AdP – Águas de Portugal, SGPS, S.A. on 31
December 2010, the consolidated results and comprehensive income of its operations, the changes to its
consolidated total equity and its consolidated cash flow for the year ending on this date, in accordance with
the international financial reporting standards adopted by the European Union.
Remarks
7. Without prejudice to our opinion expressed in the above paragraph, we wish to add the following:
- As described in Note 2.5.2 of the Notes to the Financial Statements, the company recognizes, from an
accounting standpoint, the amounts of deficiencies/surpluses of tariffs and prices practiced in relation to those
that would be necessary to recover the inherent concession costs and reimburse the capital invested, thereby
ensuring the economic and financial balance of the concessions, as foreseen in existing concession contracts.
The company chose to reflect this situation in the financial statements, despite the ongoing lack of approval
by competent entities of the mechanisms to reflect these deficiencies/surpluses of tariffs and prices.
- For the first time, this year the company prepared its consolidated financial statements in accordance with
international accounting standards, as adopted by the European Union. The impacts of the transition compared
to prior rules are described in Note 5 to the Financial Statements.
Lisbon, 08 April 2011
Ernst & Young Audit & Associados – SROC, S.A.
Statutory Auditing Firm (no. 178)
Represented by:
Rui Abel Serra Martins (Statutory Auditor no. 1119)