This excerpt taken from the FTE 6-K filed Apr 14, 2009.
II. Justification of our assesments
In accordance with the requirements of Article L. 823-9 of the French Commercial code (Code de Commerce) relating to the justification of our assessments, we bring to your attention to the following matters:
As stipulated in Note 2.3 to the annual financial statements, the management of France Telecom makes assumptions and uses accounting estimates that may affect the amounts recorded in the financial statements as well as the accompanying notes. This note also states that actual results may differ from these estimates, depending on various assumptions or situations. In the context of our audit of the annual financial statements for the year ended December 31, 2008, we have considered that among the accounts that are subject to significant accounting estimates for which our assessments may be explained are those relating to financial assets, intangible and tangible assets and provisions for risks.
We have notably:
with respect to the abovementioned assets, assessed the data and the assumptions on which the estimates are based, and more specifically cash flow projections prepared by the Companys operational management in the economic situation brought about by the financial crisis, reviewed the calculations made by the Company and the sensitivity of the main values in use, assessed the accounting principles and methods used to determine fair values, compared accounting estimates made for prior periods with actual results, and reviewed the management approval procedures for these estimates;
with respect to provisions for risks, assessed the basis upon which such provisions have been set up, reviewed the disclosures relating to these risks in the notes to the annual financial statements, and reviewed the management approval procedure for such estimates.
These assessments were thus made in the context of the performance of our audit of the annual financial statements taken as a whole, and therefore contributed to the formation of our opinion expressed in the first part of this report.