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DOCUMENTS SPECIFIC TO THE SHAREHOLDERS’ GENERAL MEETING
8
4.
I
AUDITORS’ REPORT ON THE COMPANY FINANCIAL STATEMENTS - FINANCIAL YEAR
ENDED DECEMBER 31, 2017
To the Shareholders’ General Meeting of LISI,
Opinion
In accordancewith the terms of our appointment by your Shareholders’
General Meeting, we have conducted the audit of the accompanying
Company financial statements of LISI for the financial year ended
December 31, 2017.
We certify that the Company financial statements comply with French
accounting rules and principles and provide a true and fair view of the
earnings derived from the Company’s activity during the year, as well
as the financial situation and net worth at the end of the financial year.
The opinion expressed above is consistent with the content of our
report to the Audit Committee.
Basis of our opinion
Audit standard
We have carried out our audit in accordance with the professional
standards in use in France. We consider that the items we have
gathered form both a sufficient and an appropriate basis for our
opinion.
Our responsibilities under these standards are specified in the section
“Responsibilities of Auditors relating to the audit of the Company
financial statements” of this report.
Independence
We have carried out our audit in compliance with the rules of
independence applicable to us, for the period running from January 1,
2017 to the date of issue of this report, and in particular, we have not
provided services prohibited under Article 5, paragraph 1, of Regulation
(EU) No. 537/2014 or under the French Code of Ethics for Auditors.
Justification of our assessments - Key audit matters
Pursuant to the provisions of Articles L.823-9 and R.823-7 of the
French Commercial Code on the justification of our assessments,
we inform you of the key audit matters relating to the risk of material
misstatements which, in our professional judgment, have been more
significant for the audit of the Company financial statements of the
financial year, and how we tackled these risks.
These assessments form part of our task as Auditors of the Company
financial statements, taken as a whole, and have helped us to form
our opinion, as it is described above. We do not express an opinion on
elements of these Company financial statements taken separately.
Risk identified: Valuation of equity interests
Equity interests, shown in the Assets at December 31, 2017 for a net
amount of €252,761 thousand, is the largest itemof the balance sheet.
As specified in Note 3.1.b, they are measured at the cost at which they
were acquired, excluding the costs incurred for their acquisition or, if
applicable, their value in use. The value in use is appraised based on a
number of criteria including net assets and the profitability outlook.
Considering the weight of equity interests in the balance sheet and
their sensitivity to variations in data and in the assumptions on which
are based estimates of the profitability outlook, we have considered
the measurement of the value in use of equity interests as a key audit
matter.
How we tackled it
To appraise the estimate of the value in use of equity interests, based
on information provided to us, our work included:
■■
analyzing, based on information provided to us, whether the
estimate of these values bymanagement is based on an appropriate
justification of the valuation method and the figures used;
■■
comparing the data used for performing the tests of impairment of
equity interests with source data by entity and with the results of
audit work on these subsidiaries;
■■
checking, using sample testing techniques, the mathematical
correctness of the calculation of values in use used by the company.
Review of the management report and other documents sent to
shareholders
We have also carried out verifications specifically required by law, in
accordance with French professional regulations.
The information provided in the management report and in other
documents sent to shareholders on the financial situation and the
Company financial statements.
We have no comments to make on the sincerity and consistency with
the consolidated financial statements of the information provided in
the management report of the Board or the documents sent to the
shareholders on the financial position and the financial statements.
Report on corporate governance
We certify the existence, in the report of the Board of Directors on
corporate governance, of the information required under Articles
L.225-37-3 and L.225-37-4 of the French Commercial Code.
With regard to the information supplied in application on the provisions
of Article L.225-37-3 of the French Commercial Code on payments
and bonuses paid to corporate officers as well as on commitments
approved in their favor, we have checked their consistency with the
accounts or with the data used in the drawing-up of these accounts,
LISI 2017 FINANCIAL REPORT