Our Response
We evaluated the design and tested the effectiveness of internal controls for identifying and recording impairments and provisions
and performed detailed procedures including discussions with the Head of Programmes. We evaluated management’s assumptions
in the determination of the forecast revenue to be received, costs to be incurred (including any contractual penalties) and gross
margin. Our evaluation was based on our assessment of the historical accuracy of the Group’s estimates in previous periods and
included an analysis of contingencies and impact of known technical issues on cost forecasts and provisions. We also discussed the
commercial status of the A380 programme with management including the ongoing commitment of Airbus to the A380 programme.