(Mark One)
þ		ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended August 31, 2006
OR
o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from           to          .

Bermuda		98-0341111
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
Canon’s Court 22 Victoria Street Hamilton HM 12 Bermuda (Address of principal executive offices)

Title of Each Class		Name of Each Exchange on Which Registered
Class A common shares, par value $0.0000225 per share		New York Stock Exchange

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				Page
Part I
Item 1.		Business			1
Item 1A.		Risk Factors			20
Item 1B.		Unresolved Staff Comments			36
Item 2.		Properties			36
Item 3.		Legal Proceedings			36
Item 4.		Submission of Matters to a Vote of Security Holders			36
Part II
Item 5.		Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities			39
Item 6.		Selected Financial Data			43
Item 7.		Management’s Discussion and Analysis of Financial Condition and Results of Operations			44
Item 7A.		Quantitative and Qualitative Disclosures about Market Risk			72
Item 8.		Financial Statements and Supplementary Data			73
Item 9.		Changes in and Disagreements with Accountants on Accounting and Financial Disclosure			73
Item 9A.		Controls and Procedures			73
Item 9B.		Other Information			74
Part III
Item 10.		Directors and Executive Officers of the Registrant			75
Item 11.		Executive Compensation			75
Item 12.		Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters			75
Item 13.		Certain Relationships and Related Transactions			75
Item 14.		Principal Accounting Fees and Services			75
Part IV
Item 15.		Exhibits, Financial Statement Schedules			76
Signatures

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ITEM 1.	BUSINESS

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Operating Groups
Communications		Financial
& High Tech		Services		Products		Resources		Government
• Communications • Electronics & High Tech • Media & Entertainment		• Banking • Capital Markets • Insurance		• Automotive • Consumer Goods & Services • Health & Life Sciences • Industrial Equipment • Retail & Consumer • Transportation & Travel Services		• Chemicals • Energy • Natural Resources • Utilities		• Government

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	Communications & High Tech

	•	Communications. Our Communications industry group serves many of the world’s leading wireline, wireless, cable and satellite communications network operators and service providers. We provide a wide range of services designed to help our communications clients increase margins, improve asset utilization, improve customer retention, increase revenues, reduce overall costs and accelerate sales cycles. We offer a suite of reusable solutions, called Accenture Communications Solutions, designed to address major business and operational issues related to broadband and Internet protocol-based networks and services, including business intelligence, billing transformation, customer contact transformation, sales force transformation, service fulfillment and next-generation network optimization. Our Communications industry group represented approximately 62% of our Communications & High Tech operating group’s revenues before reimbursements in fiscal 2006.
	•	Electronics & High Tech. Our Electronics & High Tech industry group serves the communications technology, consumer technology, enterprise technology, semiconductor, software and aerospace/ defense segments. This industry group provides services in areas such as strategy, enterprise resource management, customer relationship management, supply chain management, software development, human performance, and merger/acquisition activities, including post-merger integration. We also offer a suite of reusable solutions, called Accenture High Tech Solutions, designed to address the industry’s major business and operational challenges, such as new product innovation and development, customer service and support, sales and marketing, and globalization.
	•	Media & Entertainment. Our Media & Entertainment industry group serves the broadcast, entertainment (television, music and movie), print, publishing and portal industries. Professionals in this industry group provide a wide range of services, including digital content solutions designed to help companies effectively manage, distribute and protect content across numerous media channels.

	Financial Services

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	•	Banking. Our Banking industry group works with retail and commercial banks and diversified financial enterprises. We help these organizations develop and execute strategies to target, acquire and retain customers more effectively, expand product and service offerings, comply with new regulatory initiatives, and leverage new technologies and distribution channels. Our Banking industry group represented approximately 55% of our Financial Services operating group’s revenues before reimbursements in fiscal 2006.
	•	Capital Markets. Our Capital Markets industry group helps investment banks, broker/ dealers, asset management firms, depositories, clearing organizations and exchanges improve operational efficiency and transform their businesses to remain competitive.
	•	Insurance. Our Insurance industry group helps property and casualty insurers, life insurers, reinsurance firms and insurance brokers improve business processes, develop Internet-based insurance businesses and improve the quality and consistency of risk selection decisions. Our Insurance industry group has also developed a claims management capability that enables insurers to provide better customer service while optimizing claims costs. We also provide a variety of outsourced solutions to help insurers improve working capital and cash flow, deliver permanent cost savings and enhance long-term growth. Our Insurance industry group represented approximately 31% of our Financial Services operating group’s revenues before reimbursements in fiscal 2006.

	Products

	•	Automotive. Our Automotive industry group works with auto manufacturers, suppliers, dealers, retailers and service providers. Professionals in this industry group help clients develop and implement innovative solutions focused on product development and commercialization, customer service and retention, channel strategy and management, branding, buyer-driven business models, cost reduction, customer relationship management and integrated supplier partnerships.
	•	Consumer Goods & Services. Our Consumer Goods & Services industry group serves food, beverage, household goods and personal care, tobacco and footwear/apparel manufacturers around the world. We add value to these companies through service offerings designed to enhance performance by addressing critical elements of success, including sales and marketing productivity, customer and consumer insight, working capital productivity improvement, supply chain collaboration, and overhead productivity improvement.
	•	Health & Life Sciences. Our Health & Life Sciences industry group works with healthcare providers, government health departments, policy-making authorities/regulators, managed care organizations, health insurers and pharmaceutical, biotechnology, medical products and other industry-related companies to improve the quality, accessibility and affordability of healthcare. Our key offerings include health clinical transformation, electronic health records and hospital back-office services in the provider/government segment; research and development transformation, commercial effectiveness and customer interaction, and integrated electronic compliance (manufacturing and supply chain) in the pharmaceuticals and medical products segment; and health information and data management, claims excellence/cost containment and health plan back-office services in the payor segment.

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	•	Industrial Equipment. Our Industrial Equipment industry group serves the industrial and electrical equipment, construction, consumer durable and heavy equipment industries. We help our clients increase operating and supply chain efficiencies by improving processes and leveraging technology. We also help clients generate value from strategic mergers and acquisitions. In addition, our Industrial Equipment industry group develops and deploys innovative solutions in the areas of channel management, collaborative product design, remote field maintenance, enterprise application integration and outsourcing.
	•	Retail. Our Retail industry group serves a wide spectrum of retailers and distributors, including supermarkets, specialty premium retailers and large mass-merchandise discounters. We provide service offerings that help clients address new ways of reaching the retail trade and consumers through precision marketing; maximize brand synergies and cost reductions in mergers and acquisitions; improve supply chain efficiencies through collaborative commerce business models; and enhance the efficiency of internal operations. Our Retail industry group represented approximately 31% of our Products operating group’s revenues before reimbursements in fiscal 2006.
	•	Transportation & Travel Services. Our Transportation & Travel Services industry group serves companies in the airline, freight transportation, third-party logistics, hospitality, gaming, car rental, passenger rail and travel distribution industries. We help clients develop and implement strategies and solutions to improve customer relationship management capabilities, operate more-efficient networks, integrate supply chains, develop procurement and electronic business marketplace strategies, and more effectively manage maintenance, repair and overhaul processes and expenses. Through our Navitaire subsidiary, we offer airlines a range of services, including reservations, direct ticket distribution, revenue protection, decision support, passenger revenue accounting and revenue management on an outsourced basis.

	Resources

	•	Chemicals. Our Chemicals industry group works with a wide cross-section of industry segments, including petrochemicals, specialty chemicals, polymers and plastics, gases and life science companies. We also have long-term outsourcing contracts with many industry leaders.
	•	Energy. Our Energy industry group serves a wide range of companies in the oil and gas industry, including upstream, downstream and oil services companies. Our key areas of focus include helping clients optimize production, manage the hydrocarbon supply chain, streamline retail operations and realize the full potential of third-party enterprise-wide technology solutions. In addition, our multi-client outsourcing centers enable clients to increase operational efficiencies and exploit cross-industry synergies.
	•	Natural Resources. Our Natural Resources industry group serves the forest products and metals and mining industries. We help lumber, pulp, papermaking, converting and packaging companies as well as iron, steel, aluminum, coal, copper and precious metals companies develop and implement new business strategies, redesign business processes, manage complex

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		change initiatives, and integrate processes and technologies to achieve higher levels of performance.
	•	Utilities. Our Utilities industry group works with electric, gas and water utilities around the world to respond to an evolving and highly competitive marketplace. The group’s work includes helping utilities transform themselves from regulated, and sometimes state-owned, local entities to global deregulated corporations, as well as developing diverse products and service offerings to help our clients deliver higher levels of service to their customers. These offerings include customer relationship management, workforce enablement, supply chain optimization, and trading and risk management. We also provide a range of outsourced customer-care services to utilities and retail energy companies in North America. Our Utilities industry group represented approximately 42% of our Resources operating group’s revenues before reimbursements in fiscal 2006.

	Government

	Growth Platforms

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	Business Consulting

	•	Customer Relationship Management. The professionals in our Customer Relationship Management (“CRM”) service line help companies acquire, develop and retain more profitable customer relationships. We offer a full range of innovative capabilities that address every aspect of CRM, including marketing, direct and indirect sales, customer service, field support and customer contact operations. These capabilities include rigorous approaches to improving the return on marketing investment, methods for building insight into customers’ purchase habits and service preferences, tailoring offers and service treatment based upon that insight, and unique methods of optimizing the quality, cost and revenue impact of sales and service operations. Together with our alliance partners, we bring these skills to our clients to help them accelerate growth, improve marketing and sales productivity and reduce customer-care costs—thus increasing the value of their customer relationships and enhancing the economic value of their brands.
	•	Finance & Performance Management. The professionals in our Finance & Performance Management service line work with our clients’ finance and business unit executives to develop financial transaction processing, risk management and business performance reporting capabilities. Among the services we provide are strategic consulting with regard to the design and structure of the finance function; the establishment of shared service centers; and the configuration of enterprise resource planning platforms for streamlining transaction processing. Our finance capability services also address revenue cycle management, billing, credit risk and collection effectiveness, electronic invoicing and settlement, tax processing, lending and debt recovery. Our performance management services address shareholder value targeting, scorecard and performance metrics development, performance reporting solutions and applied business analytics to improve profitability. Our professionals, who often utilize the resources of Accenture Finance Solutions, one of our Business Process Outsourcing (“BPO”) businesses, work with finance executives to develop and implement solutions that help them align their companies’ investments with their business objectives and establish security relating to the exchange of information to reporting institutions.
	•	Human Performance. The professionals in our Human Performance service line work with clients on a wide range of workforce and organizational issues to deliver improved business and operational results. Our integrated approach and end-to-end capabilities include services and solutions in organization and change management, human resources (HR) administration, learning, knowledge management, performance management, talent management, HR IT systems implementation and overall transformation of key workforces. Through our Human Performance service line, we help companies and governments improve the efficiency and effectiveness of their HR services while lowering associated costs; deliver improvements in employee and workforce performance; and transform organizations through project-, program- and enterprise-level change management.
	•	Strategy. Our Strategy professionals utilize a combination of strategy and operations experience to help senior executives translate insights into results at both the enterprise and business-unit level. With deep skills and capabilities in corporate strategy, corporate restructuring, growth and innovation strategies, mergers and acquisitions, merger integration, organization strategy, pricing strategy and profitability assessment, shareholder value analysis

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		and strategic IT effectiveness, we help clients develop—and execute—pragmatic solutions that transform organizations and drive sustained high performance.
	•	Supply Chain Management. The professionals in our Supply Chain Management service line work with clients across a broad range of industries to develop and implement supply chain operations strategies that enable profitable growth in new and existing markets. Our professionals combine global industry expertise and skills in supply chain strategy, sourcing and procurement, supply chain planning, manufacturing and design, fulfillment and service management to help organizations achieve high performance. We work with clients to implement innovative consulting and outsourcing solutions that align operating models to support business strategies; optimize global operations; support profitable product launches; and enhance the skills and capabilities of the supply chain workforce.

	Systems Integration and Technology

	•	Information Management Services. We provide services to help organizations manage the full range of their information needs to improve data quality, enhance decision-making capabilities and meet compliance requirements. This includes managing both structured data (business intelligence) and unstructured content (content management and portals).
	•	Complex Solution Architecture. With deep skills and expertise in both J2EE (Java-based) and .NET technology architectures, we work with clients to address gaps in the functionality provided by commercial packaged applications; address technical aspects of the business process that are unique to a client; and develop customized technical solutions for business processes for which no packaged solutions are available.
	•	Enterprise Architecture. We provide solutions that integrate information technology (“IT”) with business capabilities to provide a seamless operating environment for organizations. Our solutions provide a reference point for measuring both IT investment and results in the delivery roadmap that defines how IT systems need to change to drive future business growth and higher performance.
	•	Enterprise Solutions. We implement a variety of application software—including SAP and Oracle, among others—to streamline business processes, systems and information and help organizations access, manage and exploit data to make more-informed business decisions.
	•	Integration. We use a variety of technology architectures and platforms—including service-oriented architectures (see below), among others—and Web services standards to connect and streamline business processes, systems and information to reduce costs and improve business and IT performance.
	•	Infrastructure Consulting Services. We provide solutions to help organizations optimize their IT infrastructures while reducing costs. From data center, operations engineering and network infrastructure to desktop and security solutions, our services enable clients to rationalize, standardize, secure and transform their IT infrastructures for improved performance of mission-critical business processes, applications and end users.
	•	IT Strategy & Transformation. We help CEOs and CIOs with critical IT challenges, such as advising on IT investments based on bottom-line return, and help them understand how

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		technologies can enable their business solutions and turn technology innovation into business results for competitive advantage.
	•	Microsoft Solutions. Together with our alliance partner Microsoft and our Avanade subsidiary, we develop and deliver cost-efficient, innovative business solutions based on Microsoft Windows Server 2003 and other .NET technologies, leveraging our deep industry expertise and practical applications of leading-edge technologies.
	•	Mobile Solutions. We help clients develop solutions that give their workforces access to key enterprise applications—including supply chain management, telematics, field force enablement, customer relationship management and customer database applications—through mobile devices and/or the Internet.
	•	Service-Oriented Architecture. We help CIOs and business leaders unleash the potential of service-oriented architecture to enable improvement in IT efficiency and a more effective alignment between business processes and applications. Accenture guides organizations through a four-phased approach for designing and building flexible IT solutions that enable business process components to be assembled and used more efficiently to deliver distinctive business services and capabilities for higher performance.
	•	Research & Development. We use new and emerging technologies to develop business solutions that we believe will be the drivers of our clients’ growth and enable them to be first to market with unique capabilities. Key areas of focus include information insight and sensor technologies.

	Outsourcing

	•	Business Process Outsourcing. We work with clients to develop and deliver business process innovations that transform their businesses and deliver higher performance levels at lower costs. Through our BPO services, we manage specific business processes or functions for clients, providing solutions that are more efficient and cost-effective than if the functions were provided in-house. In addition to providing individual BPO services, we can bundle two or more business functions to provide clients with even greater efficiencies, control and cost savings.

		We offer clients across all industries a variety of function-specific BPO services, including finance and accounting, human resources, learning, procurement and customer contact. Through several acquisitions in fiscal 2006, we enhanced our finance and accounting outsourcing capabilities in the areas of profit recovery and analytics and also expanded the range of back-office BPO capabilities to include those designed specifically for the middle market. We also offer specialized services tailored to clients in specific industries. For instance, we offer life insurers policy administration and management services, including high-volume transaction processing capabilities. We provide utilities companies with facilities and field services, as well as specialized customer care, finance and accounting, human resources, supply chain and information technology services. In addition, through our Navitaire subsidiary, we offer airlines a range of services, including reservations, direct ticket distribution, revenue protection, decision support, passenger revenue accounting and revenue management.

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	•	Application Outsourcing. Accenture takes a holistic approach to application outsourcing that goes beyond traditional cost-cutting measures, helping clients improve the total performance of application development and maintenance. We provide a wide array of application outsourcing services under flexible arrangements, managing custom or packaged software applications—including enterprise-wide applications such as SAP, PeopleSoft, Oracle and Siebel—over their complete development and maintenance life-cycles. The scope of services ranges from standardized, discrete application outsourcing services, including application testing, application management of enterprise-wide software programs (SAP, Oracle, PeopleSoft, etc.) and application outsourcing capacity services, to large-scale application enhancement and development for individual or multiple applications, as well as application portfolio rationalization and consolidation. We can also take end-to-end responsibility for all of a client’s information technology (“IT”) function, including infrastructure and operations, leveraging our shared services delivery groups and our application and infrastructure transformation consulting expertise to deliver significant gains in client productivity.

		By transferring to Accenture the responsibility for managing one or more of their applications, clients can leverage our assets, scale and global resources as well as our secure, global infrastructure delivery capabilities. This allows clients to maintain and control the overall performance of their IT capabilities while reducing the complexity and costs associated with managing third parties and increasing the flexibility, scalability, predictability and security of their IT infrastructures.

	•	Infrastructure Outsourcing. We deliver an integrated set of managed infrastructure services encompassing all infrastructure functions— from network access and desktop management to remote technology support. Services can be delivered as discrete, standalone solutions or bundled with Accenture application outsourcing and BPO services. Our infrastructure outsourcing services include:

	•	IT spend management— Asset management, as well as managed procurement and technology spend, to reduce overall IT non-salary spending;
	•	Data center services— Hosting to support development and production environments, storage services, database management and messaging services;
	•	Service desk— Single point of contact for support and online portal services to resolve front-line issues;
	•	Security services— Identity management, intrusion and firewall protection, end-user device and messaging security, and policy and awareness;
	•	Communications services— Data and voice network management, optimization and converged services; and
	•	Workplace services— Lifecycle management for desktops, field services and mobile devices, and file and print services.

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	•	Large multinational providers, including the service arms of large global technology providers, that offer some or all of the consulting, systems integration and technology, and outsourcing services that we do;
	•	Off-shore service providers in lower-cost locations, particularly Indian providers, which offer a subset of the services we offer;
	•	Niche solution or service providers which complete with us in a specific geographic market, industry segment or service area, including companies that provide new or alternative products, services or delivery models; and
	•	Accounting firms that are expanding or re-emphasizing their provision of consulting services.

	•	skills and capabilities of people;
	•	innovative service and product offerings;
	•	perceived ability to add value;
	•	reputation and client references;
	•	price;
	•	scope of services;

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	•	service delivery approach;
	•	technical and industry expertise;
	•	quality of services and solutions;
	•	ability to deliver results on a timely basis;
	•	availability of appropriate resources; and
	•	global reach and scale.

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	Accenture Ltd Bye-Laws

	•	except as described below, maintain beneficial ownership of his or her covered shares received on or prior to July 24, 2001 for a period of eight years thereafter;
	•	maintain beneficial ownership of at least 25% of his or her covered shares received on or prior to July 24, 2001 as long as he or she is an employee of Accenture; and
	•	comply with certain additional transfer restrictions imposed by or with the consent of Accenture from time to time, including in connection with offerings of securities by Accenture Ltd.

	•	Covered persons who continue to be employees of Accenture are permitted to transfer a percentage of the covered shares received by them on or prior to July 24, 2001 and owned by them as follows:

Cumulative percentage of shares
permitted to be transferred		Years after July 24, 2001
10%		1 year
25%		2 years
35%		3 years
45%		4 years
55%		5 years
65%		6 years
75%		7 years
100%		The later of (a) 8 years or (b) end of employment by Accenture

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	•	Covered persons retiring from Accenture at the age of 50 or above are permitted to transfer covered shares they own on an accelerated basis as follows:

		Percentage of remaining
		transfer restricted shares
Age at retirement		permitted to be transferred
56 or older		100%
55		87.5%
54		75%
53		62.5%
52		50%
51		37.5%
50		25%

	•	In addition, a retired senior executive who reaches the age of 56 is permitted to transfer any covered shares he or she owns. Any remaining shares owned by retiring senior executives for which transfer restrictions are not released on an accelerated basis will be eligible to be transferred as if the retiring senior executive continued to be employed by Accenture.
	•	Covered persons who became disabled before our transition to a corporate structure are permitted to transfer all of their covered shares. Current and former senior executives who have become disabled since our transition to a corporate structure are subject to the general transfer restrictions applicable to employees or, if disabled after the age of 50, benefit from the accelerated lapses of transfer restrictions applicable to retired senior executives.

	•	participate as sellers in underwritten public offerings of common shares and tender and exchange offers and share purchase programs by Accenture;
	•	transfer covered shares in family or charitable transfers;

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	•	transfer covered shares held in employee benefit plans; and
	•	transfer covered shares in particular situations (for example, to immediate family members and trusts).

	Articles of Association of Accenture SCA

	•	except as described below, maintain beneficial ownership of his or her covered shares received on or prior to July 24, 2001 for a period of eight years thereafter;
	•	maintain beneficial ownership of at least 25% of his or her covered shares received on or prior to July 24, 2001 as long as he or she is an employee of Accenture; and
	•	comply with certain other transfer restrictions when requested to do so by Accenture. See “—Other Restrictions.”

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	•	Covered persons who continue to be employees of Accenture are permitted to transfer a percentage of the covered shares received by them on or prior to July 24, 2001 and owned by them commencing on July 24, 2002 as follows:

Cumulative percentage of shares
permitted to be transferred		Years after July 24, 2001
35%		3 years
45%		4 years
55%		5 years
65%		6 years
75%		7 years
100%		The later of (a) 8 years or (b) end of employment by Accenture

	•	Covered persons retiring at the age of 50 or above or who become disabled are granted accelerations of these provisions on terms identical to those applicable to Accenture Ltd Class A common shares held by covered persons and described under “—Accenture Ltd Bye-laws—Covered Person Transfer Restrictions” above.

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ITEM 1A.	RISK FACTORS

	Risks That Relate to Our Business

	Our results of operations could be negatively affected if we cannot expand and develop our services and solutions in response to changes in technology and client demand.

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	The consulting, systems integration and technology, and outsourcing markets are highly competitive, and we might not be able to compete effectively.

	•	Large multinational providers, including the service arms of large global technology providers, that offer some or all of the consulting, systems integration and technology, and outsourcing services that we do;
	•	Off-shore service providers in lower-cost locations, particularly Indian providers, which offer a subset of the services we offer;
	•	Niche solution or service providers which compete with us in a specific geographic market, industry segment or service area, including companies that provide new or alternative products, services or delivery models; and
	•	Accounting firms that are expanding or re-emphasizing their provision of consulting services.

	Our results of operations could be affected by economic and political conditions and the effects of these conditions on our clients’ businesses and levels of business activity.

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	Our work with government clients exposes us to additional risks inherent in the government contracting process.

	•	Government entities typically fund projects through appropriated monies. While these projects are often planned and executed as multi-year projects, the government entities usually reserve the right to change the scope of or terminate these projects for lack of approved funding and at their convenience. Changes in government or political developments could result in charges in scope or in termination of our projects.
	•	Government entities often reserve the right to audit our contract costs, including allocated indirect costs, and conduct inquiries and investigations of our business practices with respect to our government contracts. If the client finds that the costs are not reimbursable, then we will not be allowed to bill for them, or the cost must be refunded to the client if it has already been paid to us. Findings from an audit also may result in our being required to prospectively adjust previously agreed rates for our work and may affect our future margins.
	•	If a government client discovers improper or illegal activities in the course of audits or investigations, we may become subject to various civil and criminal penalties and administrative sanctions, which may include termination of contracts, forfeiture of profits, suspension of payments, fines and suspensions or debarment from doing business with other agencies of that government. The inherent limitations of internal controls may not prevent or detect all improper or illegal activities, regardless of their adequacy.
	•	Government contracts, and the proceedings surrounding them, are often subject to more extensive scrutiny and publicity than contracts with commercial clients. Negative publicity related to our government contracts, regardless of its accuracy, may further damage our business by affecting our ability to compete for new contracts.
	•	Political and economic factors such as pending elections, revisions to governmental tax policies and reduced tax revenues can affect the number and terms of new government contracts signed.
	•	Terms and conditions of government contracts tend to be more onerous and are often more difficult to negotiate than those for commercial contracts.

	Our business could be adversely affected if our clients are not satisfied with our services.

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	Our business could be negatively affected if we incur legal liability in connection with providing our solutions and services.

	Our results of operations could be adversely affected if our clients terminate their contracts with us on short notice.

	Outsourcing services are a significant part of our business and subject us to operational and financial risk.

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	We could be subject to liabilities if our subcontractors or the third parties with whom we partner cannot deliver their project contributions on time or at all.

	Our results of operations may be affected by the rate of growth in the use of technology in business and the type and level of technology spending by our clients.

	Our profitability could suffer if we are not able to maintain favorable pricing rates.

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	•	our clients’ perceptions of our ability to add value through our services;
	•	competition;
	•	introduction of new services or products by us or our competitors;
	•	our competitors’ pricing policies;
	•	our ability to accurately estimate, attain and sustain contract revenues, margins and cash flows over increasingly longer contract periods;
	•	bid practices of clients and their use of third-party advisors;
	•	the use by our competitors and our clients of off-shore resources to provide lower-cost service delivery capabilities; and
	•	general economic and political conditions.

	Our profitability could suffer if we are not able to maintain favorable utilization rates.

	•	our ability to transition employees from completed projects to new assignments and to hire and assimilate new employees;
	•	our ability to forecast demand for our services and thereby maintain an appropriate headcount in each of our geographies and workforces;
	•	our ability to manage attrition; and
	•	our need to devote time and resources to training, professional development and other non-chargeable activities.

	If our pricing structures do not accurately anticipate the cost and complexity of performing our work, then our contracts could be unprofitable.

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	Many of our contracts utilize performance pricing that links some of our fees to the attainment of various performance or business targets. This could increase the variability of our revenues and margins.

	Our alliance relationships may not be successful.

	Our global operations are subject to complex risks, some of which might be beyond our control.

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	Our profitability could suffer if we are not able to control our costs.

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	If we are unable to attract, retain and motivate employees or efficiently utilize their skills, we might not be able to compete effectively and will not be able to grow our business.

	If we are unable to collect our receivables or amounts extended to our clients as financing, our results of operations could be adversely affected.

	Tax legislation and negative publicity related to Bermuda companies could lead to an increase in our tax burden or affect our relationships with our clients.

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	Our services or solutions could infringe upon the intellectual property rights of others or we might lose our ability to utilize the intellectual property of others.

	We have only a limited ability to protect our intellectual property rights, which are important to our success.

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	If we are unable to manage the organizational challenges associated with the size and expansion of our company, we might be unable to achieve our business objectives.

	We might acquire other businesses or technologies, and there is a risk that we might not successfully integrate them with our business or might otherwise fail to achieve our strategic objectives.

	The share price of Accenture Ltd Class A common shares could be adversely affected from time to time by sales, or the anticipation of future sales, of Class A common shares held by our employees and former employees.

	A large number of shares will become freely tradable on July 24, 2009

	•	At the time of our transition to a corporate structure in 2001, many of our senior executives received a substantial number of Class A common shares and/or securities that may be

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		exercisable, redeemable or exchangeable for Class A common shares or pursuant to which Class A common shares may be delivered to such senior executives. Those shares generally remain subject to transfer restrictions that lapse with the passage of time on an annual basis through July 24, 2009. See “Business—Organizational Structure—Restrictions on Transfer of Certain Accenture Shares.” As of October 12, 2006, the following number of additional shares still held by our current and former senior executives and their permitted transferees are scheduled to have transfer restrictions lapse on the dates set forth below:

		Number of additional				Number of additional Accenture
		Accenture Ltd				SCA Class I common shares and
		Class A common shares that				Accenture Canada Holdings Inc.
		are scheduled to become				exchangeable shares that will
		available for transfer on				become available for transfer
Anniversary Date		anniversary date				on anniversary date
July 24, 2007			10,597,041				28,825,937
July 24, 2008			10,812,783				32,533,067
July 24, 2009			35,959,138				74,327,885
Later of July 24, 2009 or end of employment with Accenture			23,370,544				63,307,438

	Our Senior Executive Trading Policy might not be effective at limiting the number of shares sold

	•	In July 2005, we implemented a Senior Executive Trading Policy. It provides, among other things, that all shares covered by the transfer restrictions contained in our various charter documents and still held by actively employed senior executives but which are no longer restricted by the transfer restrictions described above will be subject to company-imposed quarterly trading guidelines. These guidelines currently limit the total number of shares redeemed, sold or otherwise transferred in any calendar quarter to no more than a composite average weekly volume of trading in Accenture Ltd Class A common shares. The policy guidelines are not legal or contractual restrictions, however, and there is a risk that the internal sanctions available to us might not adequately dissuade individual employees from attempting transfers in excess of the amounts permitted under the policy. Additionally, there is a risk that this policy creates an adverse incentive for some senior executives to retire or to terminate their Accenture employment in order to sell unrestricted shares that would otherwise be governed by these quarterly trading guidelines. This could have an adverse effect on our ability to retain talented and experienced senior executives.

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	The sale of shares issued under our 2001 Share Incentive Plan could have an adverse effect on our share price

	•	As of October 12, 2006, a total of 48,323,627 of our Class A common shares underlying restricted share units were scheduled to be delivered during the calendar years indicated below:

Calendar Year		Number of Shares
2006			304,439
2007			8,222,442
2008			6,626,615
2009			12,508,826
2010 and after			20,661,305

	•	In addition, as of October 12, 2006, a total of 55,037,422 Accenture Ltd Class A common shares were issuable pursuant to options, of which options to purchase an aggregate of 44,198,638 Class A common shares were exercisable and options to purchase an aggregate of 10,838,784 Class A common shares are scheduled to become exercisable during the calendar years indicated below:

Calendar Year		Number of Shares
2006			73,894
2007			8,088,889
After 2007			2,676,001

	Our share price has fluctuated in the past and could continue to fluctuate, including in response to variability in revenues, operating results and profitability, and as a result our share price could be difficult to predict.

	•	announcements by us or our competitors about developments in our business or prospects;
	•	projections or speculation about our business or that of our competitors by the media or investment analysts;
	•	changes in macroeconomic or political factors unrelated to our business;
	•	general or industry-specific market conditions or changes in financial markets; and
	•	changes in our revenues, operating results and profitability.

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	•	seasonality, including number of workdays and holiday and summer vacations;
	•	the business decisions of our clients regarding the use of our services;
	•	periodic differences between our clients’ estimated and actual levels of business activity associated with ongoing work;
	•	the stage of completion of existing projects and/or their termination;
	•	our ability to transition employees quickly from completed to new projects;
	•	the introduction of new products or services by us or our competitors;
	•	changes in our pricing policies or those of our competitors;
	•	our ability to manage costs, including those for personnel, support services and severance;
	•	our ability to maintain an appropriate headcount in each of our workforces;
	•	acquisition and integration costs related to possible acquisitions of other businesses;
	•	changes in, or the application of changes in, accounting principles or pronouncements under U.S. generally accepted accounting principles, particularly those related to revenue recognition;
	•	currency exchange rate fluctuations;
	•	changes in estimates, accruals or payments of variable compensation to our employees; and
	•	global, regional and local economic and political conditions and related risks, including acts of terrorism.

	Our share price could be adversely affected if we are unable to maintain effective internal controls.

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	We are registered in Bermuda and a significant portion of our assets are located outside the United States. As a result, it might not be possible for shareholders to enforce civil liability provisions of the Federal or state securities laws of the United States.

	Bermuda law differs from the laws in effect in the United States and might afford less protection to shareholders.

35

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	We might be unable to access additional capital on favorable terms or at all. If we raise equity capital, it may dilute our shareholders’ ownership interest in us.

	•	take advantage of opportunities, including more rapid expansion;
	•	acquire complementary businesses or technologies;
	•	develop new services and solutions; or
	•	respond to competitive pressures.

ITEM 1B.	UNRESOLVED STAFF COMMENTS

ITEM 2.	PROPERTIES

ITEM 3.	LEGAL PROCEEDINGS

ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

36

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37

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38

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ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

		Price Range
		High				Low
Fiscal 2005
First Quarter		$	27.58			$	22.61
Second Quarter		$	27.60			$	24.39
Third Quarter		$	25.97			$	21.00
Fourth Quarter		$	25.70			$	22.20
Fiscal 2006
First Quarter		$	28.63			$	24.45
Second Quarter		$	33.05			$	28.02
Third Quarter		$	32.94			$	26.17
Fourth Quarter		$	29.66			$	25.68
Fiscal 2007
First Quarter (through October 12, 2006)		$	33.15			$	28.28

39

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Number of Shares

Weighted Average

Remaining Available

Number of Shares to be

Exercise Price of

for Future Issuance

Issued Upon Exercise

Outstanding

(Excluding Securities

of Outstanding Options,

Options, Warrants

Reflected in 1st

Plan Category

Warrants and Rights

and Rights

Column)

Equity compensation plans approved by shareholders:

2001 Share Incentive Plan

104,249,367

(1)

$

10.40

165,164,681

2001 Employee Share Purchase Plan

—

N/A

32,371,514

Equity compensation plans not approved by shareholders

—

N/A

—

Total

104,249,367

197,536,195

(1)	Consists of 57,582,271 stock options with a weighted average exercise price of $18.84 per share and 46,667,096 restricted share units.

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															Approximate Dollar
															Value of Shares
											Total Number of				that May Yet Be
											Shares Purchased as				Purchased Under
							Average				Part of Publicly				Publicly
			Total Number of				Price Paid				Announced Plans or				Announced Plans
Period			Shares Purchased				per Share				Programs(1)				or Programs
															(In millions)
June 1, 2006—June 30, 2006
	Class A common shares			6,842			$	27.43				—			$	978
	Class X common shares			—				—				—				—
July 1, 2006—July 31, 2006
	Class A common shares			487,582			$	28.46				—			$	978
	Class X common shares			14,848,926			$	0.0000225				—				—
August 1, 2006—August 31, 2006
	Class A common shares			—				—				—			$	978
	Class X common shares			1,990,955			$	0.0000225				—				—
Total
	Class A common shares(1)(2)			494,424			$	28.45				—
	Class X common shares(3)			16,839,881			$	0.0000225				—

(1)	Since August 2001, the Board of Directors of Accenture has authorized and periodically confirmed a publicly announced open-market share purchase program for acquiring Accenture Ltd Class A common shares. During the fourth quarter of fiscal 2006, we did not purchase any Accenture Ltd Class A common shares under this program. To date, the Board of Directors of Accenture has authorized an aggregate of $2.4 billion for use in these open-market share purchases. At August 31, 2006, an aggregate of $978 million remained available for these open-market share purchases. The open-market purchase program does not have an expiration date.
(2)	During the fourth quarter of fiscal 2006, Accenture purchased 494,424 Accenture Ltd Class A common shares in transactions unrelated to publicly announced share plans or programs. These transactions consisted of acquisitions of Accenture Ltd Class A common shares via share withholding for payroll tax obligations due from employees and former employees in connection with the delivery of Accenture Ltd Class A common shares under the Company’s various employee equity share plans.
(3)	During the fourth quarter of fiscal 2006, the Company redeemed 16,839,881 Accenture Ltd Class X common shares pursuant to its bye-laws. Accenture Ltd Class X common shares are redeemable at their par value of $0.0000225 per share.

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															Approximate Dollar
															Value of Shares
											Total Number of				that May Yet Be
											Shares Purchased as				Purchased Under
							Average				Part of Publicly				Publicly
			Total Number of				Price Paid				Announced Plans or				Announced Plans
Period			Shares Purchased(1)				per Share				Programs				or Programs
Accenture SCA
June 1, 2006—June 30, 2006
	Class I common shares			—				—				—				—
July 1, 2006—July 31, 2006
	Class I common shares			6,250,637			$	28.28				—				—
August 1, 2006—August 31, 2006
	Class I common shares			2,352,530			$	28.39				—				—
Total
	Class I common shares(2)			8,603,167			$	28.31				—				—
Accenture Canada Holdings Inc.
June 1, 2006—June 30, 2006
	Exchangeable shares			—				—				—				—
July 1, 2006—July 31, 2006
	Exchangeable shares			44,970			$	28.05				—				—
August 1, 2006—August 31, 2006
	Exchangeable shares			36,037			$	28.54				—				—
Total
	Exchangeable shares(2)			81,007			$	28.27				—				—

(1)	To date, the Board of Directors of Accenture has authorized an aggregate of $4.2 billion for purchases and redemptions of shares from our current and former senior executives and their permitted transferees under our Senior Executive Trading Policy and our prior Share Management Plan. At August 31, 2006, an aggregate of $942 million remained available for these purchases and redemptions.
(2)	During the fourth quarter of fiscal 2006, Accenture redeemed and purchased a total of 8,603,167 Accenture SCA Class I common shares and 81,007 Accenture Canada Holdings Inc. exchangeable shares from current and former senior executives and their permitted transferees.

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ITEM 6.	SELECTED FINANCIAL DATA

				Year Ended August 31,
				2006(1)(2)(3)				2005(3)				2004(3)				2003(3)				2002(3)
				(in millions, except share and per share amounts)
Income Statement Data:
Revenues:
	Revenues before reimbursements			$	16,646			$	15,547			$	13,673			$	11,818			$	11,574
	Reimbursements				1,582				1,547				1,440				1,579				1,531
		Revenues			18,228				17,094				15,113				13,397				13,105
Operating expenses:
	Cost of services:
		Cost of services before reimbursable expenses			11,652				10,455				9,057				7,508				6,897
		Reimbursable expenses			1,582				1,547				1,440				1,579				1,531
		Cost of services			13,234				12,002				10,497				9,087				8,428
	Sales and marketing				1,708				1,558				1,488				1,459				1,566
	General and administrative costs				1,493				1,512				1,340				1,319				1,616
	Reorganization and restructuring (benefits) costs				(48	)			(89	)			29				(19	)			111
		Total operating expenses			16,387				14,983				13,355				11,846				11,720
Operating income					1,841				2,111				1,759				1,551				1,385
Gain (loss) on investments, net					2				21				3				10				(321	)
Interest income					130				108				60				41				46
Interest expense					(21	)			(24	)			(22	)			(21	)			(49	)
Other (expense) income					(28	)			(11	)			—				32				15
Equity in losses of affiliates					—				—				(2	)			—				(9	)
Income before income taxes					1,924				2,206				1,799				1,613				1,068
Provision for income taxes					491				697				576				566				491
Income before minority interest					1,433				1,509				1,223				1,047				576
Minority interest					(460	)			(568	)			(532	)			(549	)			(332	)
		Net income		$	973			$	940			$	691			$	498			$	245

(1)	Includes the financial impact of the resolution of the NHS matter recorded during fiscal 2006. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—The NHS Contracts.”
(2)	Includes the impact of Statement of Financial Accounting Standards No. 123R, “Share-Based Payment.” For additional information, refer to Footnote 11 (Share-Based Compensation) to our Consolidated Financial Statements under “Financial Statements and Supplementary Data.”
(3)	May not total due to rounding.

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		Year Ended August 31,
		2006				2005				2004				2003				2002
		(in millions, except share and per share amounts)
Weighted Average Class A Common Shares:
Basic			589,099,824				588,505,335				553,298,104				468,592,110				425,941,809
Diluted			893,810,585				960,853,814				1,003,081,228				996,982,549				1,023,950,170
Earnings Per Class A Common Share:
Basic		$	1.65			$	1.60			$	1.25			$	1.06			$	0.57
Diluted		$	1.59			$	1.56			$	1.22			$	1.05			$	0.56
Dividends per common share		$	0.30			$	—			$	—			$	—			$	—

		As of August 31,
		2006				2005				2004				2003				2002
		(in millions)
Balance Sheet Data:
Cash and cash equivalents		$	3,067			$	2,484			$	2,553			$	2,332			$	1,317
Working capital			1,537				1,754				1,745				1,729				723
Total assets			9,418				8,957				8,013				6,459				5,479
Long-term debt, net of current portion			27				44				32				14				3
Shareholders’ equity			1,894				1,697				1,472				832				475

ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

44

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45

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46

---

 

47

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	Design, Development and Deployment of the Systems

	Operational Services

48

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	Impact on Liquidity

49

---

 

50

---

 

51

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52

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		Pension Benefits
		2007								2006								2005
						Non-U.S.								Non-U.S.								Non-U.S.
		U.S. Plans				Plans				U.S. Plans				Plans				U.S. Plans				Plans
Discount rate			6.50	%			4.68	%			5.25	%			4.28	%			6.25	%			4.93	%
Expected return on plan assets			7.50	%			5.67	%			7.50	%			5.57	%			7.50	%			5.19	%
Rate of increase in future compensation			4.50	%			3.45	%			4.50	%			3.27	%			4.50	%			3.16	%

	Discount Rate

	Expected Return on Plan Assets

53

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	General

54

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																				Percent of Total
																				Revenues
																				Before
																				Reimbursements
																				for the Year
				Year Ended								Percent				Percent				Ended
				August 31,								Increase				Increase				August 31,
												(Decrease)				Local
				2006				2005				US$				Currency				2006				2005
				(in millions)
OPERATING GROUPS
	Communications & High Tech			$	4,177			$	4,001				4	%			6	%			25	%			26	%
	Financial Services				3,558				3,408				4				7				22				22
	Government				2,221				2,172				2				4				13				14
	Products				4,011				3,570				12				15				24				23
	Resources				2,666				2,389				12				12				16				15
	Other				13				7				n/m				n/m				—				—
TOTAL Revenues Before Reimbursements					16,646				15,547				7	%			9	%			100	%			100	%
		Reimbursements			1,582				1,547				2
		TOTAL REVENUES		$	18,228			$	17,094				7	%
GEOGRAPHY
	Americas			$	7,741			$	6,730				15	%			14	%			46	%			43	%
	EMEA(1)				7,644				7,735				(1	)			3				46				50
	Asia Pacific				1,261				1,082				17				20				8				7
TOTAL Revenues Before Reimbursements				$	16,646			$	15,547				7	%			9	%			100	%			100	%
TYPE OF WORK
	Consulting			$	9,892			$	9,559				3	%			6	%			59	%			61	%
	Outsourcing				6,754				5,988				13				14				41				39
TOTAL Revenues Before Reimbursements				$	16,646			$	15,547				7	%			9	%			100	%			100	%

(1)	EMEA includes Europe, the Middle East and Africa.

		August 31,
		2006				2005				2004
United States			39	%			37	%			39	%
United Kingdom			13				17				16

55

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56

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	Cost of Services

	Sales and Marketing

	General and Administrative Costs

	Reorganization Benefits

57

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		Year Ended August 31,
																		Effect of
																		Reorganization				Net Increase
		2006				2005				Decrease				Adjustments(1)				Benefits(2)				(Decrease)
		(in millions)
Communications & High Tech		$	631			$	673			$	(42	)		$	52			$	11			$	21
Financial Services			388				500				(112	)			52				11				(49	)
Government			83				169				(86	)			27				6				(53	)
Products			400				413				(13	)			52				9				48
Resources			339				356				(17	)			35				6				24
Total		$	1,841			$	2,111			$	(270	)		$	218			$	43			$	(9	)

(1)	Adjustments represent the estimated amounts that would have been incurred had we expensed employee stock options and employee share purchase rights for fiscal year ended August 31, 2005.
(2)	Reorganization benefits recorded during the period were allocated to the reportable operating groups as follows:

		Year Ended August 31,
		2006				2005				Change
		(in millions)
Communications & High Tech		$	(17	)		$	(28	)		$	11
Financial Services			(15	)			(26	)			11
Government			(11	)			(17	)			6
Products			(18	)			(27	)			9
Resources			(11	)			(17	)			6
Total		$	(72	)		$	(115	)		$	43

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	•	Communications & High Tech operating income increased due to revenue growth, principally in our Electronics & High Tech industry group across all geographic regions and improved gross margins, primarily in our EMEA and Asia Pacific regions.
	•	Financial Services operating income decreased due to lower gross margins from increased payroll costs earlier in the year and delivery inefficiencies on a small number of contracts, partially offset by revenue growth in our Banking industry group across all regions and in our Insurance industry group in our Americas and Asia Pacific regions.
	•	Government operating income decreased principally due to the NHS Contracts’ operating losses of $225 million associated with the net impact of the NHS Transfer Agreement and the second-quarter NHS adjustments, partially offset by strong gross margins in outsourcing and increased profitability on certain consulting contracts. See “—The NHS Contracts.”
	•	Products operating income increased due to strong revenue growth, principally in our Americas region, improved gross margins, and lower combined sales and marketing and general and administrative costs as a percentage of revenues before reimbursements. In addition, Products operating income was positively affected by revenues recognized in connection with a contract termination in our Retail industry group in our EMEA region during the third quarter of fiscal 2006. These increases were partially offset by the NHS Contracts’ operating losses of $225 million associated with the net impact of the NHS Transfer Agreement and the second-quarter NHS adjustments. See “—The NHS Contracts.”
	•	Resources operating income increased due to strong revenue growth in our Energy, Chemicals and Natural Resources industry groups across all geographic regions and lower sales and marketing costs.

59

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																				Percent of Total
																				Revenues
																				Before
																				Reimbursements
																				for the
				Year Ended												Percent				Year Ended
				August 31,								Percent				Increase				August 31,
												Increase				Local
				2005				2004				US$				Currency				2005				2004
				(in millions)
OPERATING GROUPS
	Communications & High Tech			$	4,001			$	3,741				7	%			4	%			26	%			27	%
	Financial Services				3,408				2,771				23				18				22				20
	Government				2,172				1,995				9				6				14				15
	Products				3,570				2,979				20				16				23				22
	Resources				2,389				2,178				10				5				15				16
	Other				7				9				n/m				n/m				—				—
TOTAL Revenues Before Reimbursements					15,547				13,673				14	%			10	%			100	%			100	%
		Reimbursements			1,547				1,440				7
		TOTAL REVENUES		$	17,094			$	15,113				13	%
GEOGRAPHY
	Americas			$	6,730			$	6,133				10	%			9	%			43	%			45	%
	EMEA(1)				7,735				6,572				18				11				50				48
	Asia Pacific				1,082				968				12				8				7				7
TOTAL Revenues Before Reimbursements				$	15,547			$	13,673				14	%			10	%			100	%			100	%
TYPE OF WORK
	Consulting			$	9,559			$	8,589				11	%			7	%			61	%			63	%
	Outsourcing				5,988				5,084				18				14				39				37
TOTAL Revenues Before Reimbursements				$	15,547			$	13,673				14	%			10	%			100	%			100	%

(1)	EMEA includes Europe, the Middle East and Africa.

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62

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	Cost of Services

	Sales and Marketing

	General and Administrative Costs

	Reorganization and Restructuring (Benefits) Costs

63

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		Year Ended August 31,
														Effect of
														Reorganization
														Benefits and
										Increase				Restructuring				Net Increase
		2005				2004				(Decrease)				Costs(1)				(Decrease)
		(in millions)
Communications & High Tech		$	673			$	404			$	269			$	28			$	241
Financial Services			500				354				146				27				119
Government			169				311				(142	)			18				(160	)
Products			413				415				(2	)			27				(29	)
Resources			356				275				81				18				63
Total		$	2,111			$	1,759			$	352			$	118			$	234

(1)	Reorganization benefits and restructuring costs recorded during the period were allocated to the reportable operating groups as follows:

		Year Ended August 31,
		2005				2004				Change
		(in millions)
Communications & High Tech		$	21			$	(7	)		$	28
Financial Services			20				(7	)			27
Government			14				(4	)			18
Products			21				(6	)			27
Resources			13				(5	)			18
Total		$	89			$	(29	)		$	118

	•	Communications & High Tech operating income increased primarily due to higher gross margins in fiscal 2005, reflecting strong consulting revenue growth in North America and EMEA, as well as the impact of lower-than-expected margins on three contracts in fiscal 2004.
	•	The increase in Financial Services operating income reflected a 23% increase in revenues before reimbursements and improved margins.
	•	Government operating income decreased partly due to lower-than-expected margins attributable to temporary delays under the NHS Contracts, cost overruns associated with the development of reusable assets in connection with certain client contracts, delivery inefficiencies on a small number of other contracts and a favorable contract settlement in fiscal 2004.

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	•	Products operating income decreased slightly, due to lower-than-expected margins attributable to temporary delays under the NHS Contracts and delivery inefficiencies on a small number of other contracts, partially offset by a 20% increase in revenues.
	•	The increase in Resources operating income was driven by increased revenues, reduced delivery costs and improved quality.

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	•	take advantage of opportunities, including more rapid expansion;
	•	acquire complementary businesses or technologies;
	•	develop new services and solutions;
	•	respond to competitive pressures; or
	•	facilitate purchases, redemptions and exchanges of Accenture shares.

			Year Ended August 31,
															2006 to 2005
			2006				2005				2004				Change
			(in millions)
Net cash provided by (used in):
	Operating activities		$	2,668			$	1,887			$	1,756			$	781
	Investing activities			(253	)			(575	)			(897	)			322
	Financing activities			(1,934	)			(1,377	)			(688	)			(557	)
Effect of exchange rate changes on cash and cash equivalents				102				(4	)			49				106
Net increase (decrease) in cash and cash equivalents			$	583			$	(69	)		$	220			$	652

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		Facility
		Amount
		(in millions)
Syndicated loan facility(1)		$	1,200
Separate bilateral, uncommitted, unsecured multicurrency revolving credit facilities(2)			350
Local guaranteed and non-guaranteed lines of credit(3)			136
Total		$	1,686

(1)	On July 31, 2006, we replaced our $1.5 billion syndicated loan facility maturing on June 18, 2009 with a $1.2 billion syndicated loan facility maturing on July 31, 2011. This new facility provides unsecured, revolving borrowing capacity for general working capital purposes, including the issuance of letters of credit. Financing is provided under this facility at the prime rate or at the London Interbank Offered Rate plus a spread. This facility requires us to: (1) limit liens placed on our assets to (a) liens incurred in the ordinary course of business (subject to certain qualifications) and (b) other liens securing obligations not to exceed 30% of the Company’s consolidated assets; and (2) maintain a debt-to-cash-flow ratio not exceeding 1.75 to 1.00. We continue to be in compliance with these terms. As of August 31, 2006, we had no borrowings under the facility. The facility is subject to annual commitment fees.
(2)	We maintain three separate bilateral, uncommitted, unsecured multicurrency revolving credit facilities. These facilities provide local-currency financing for the majority of our operations. Interest rate terms on the bilateral revolving facilities are at market rates prevailing in the relevant local markets. Effective August 31, 2006, we amended two of the bilateral credit facilities, which increased total capacity by $100 million to $350 million. As of August 31, 2006 and 2005, we had $2 million and $4 million, respectively, of borrowings under these facilities.
(3)	We also maintain local guaranteed and non-guaranteed lines of credit for those locations that cannot access our global facilities. At August 31, 2006, we had no borrowings under these various facilities.

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		August 31,
		2006				2005
		(in millions, except
		number of clients)
Number of clients			25				29
Client financing included in Current unbilled services		$	158			$	262
Client financing included in Non-current unbilled services			105				472
Total client financing, current and non-current		$	263			$	734

68

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69

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		Open-Market Share								Other Share
		Purchase Program								Purchase Programs
		Shares				Amount				Shares				Amount				Total
						(in millions)								(in millions)
Available authorization as of August 31, 2004						$	62							$	224			$	286
Purchases and redemptions(1)			20,566,470				(481	)			45,147,483				(1,103	)			(1,584	)
Additional authorizations(2)							1,000								2,000				3,000
Available authorization as of August 31, 2005							581								1,121				1,702
Purchases and redemptions(3)			3,491,500				(103	)			43,301,787				(1,179	)			(1,282	)
Additional authorizations(4)							500								1,000				1,500
Available authorization as of August 31, 2006						$	978							$	942			$	1,920

(1)	Other Share Purchase Programs include the following purchase activity during fiscal 2005:

	•	44,105,764 Accenture SCA Class I common shares redeemed or purchased for a total cash outlay of $1,078 million and 643,325 Accenture Canada Holdings Inc. exchangeable shares purchased for a total cash outlay of $16 million; and
	•	398,394 shares purchased through the RSU Sell-Back Program for a total cash outlay of $10 million.

(2)	On October 15, 2004, an additional $1 billion was authorized for purchase under the Company’s open-market share purchase program and an additional $2 billion was authorized for redemptions and purchases under the Company’s other share purchase programs.
(3)	Other Share Purchase Programs include the following purchase activity during fiscal 2006:

	•	31,416,894 Accenture SCA Class I common shares redeemed or purchased for a total cash outlay of $918 million and 421,194 Accenture Canada Holdings Inc. exchangeable shares purchased for a total cash outlay of $12 million;
	•	11,231,941 Accenture Ltd Class A common shares purchased for an aggregate purchase price of $243 million; and
	•	231,758 shares purchased through the RSU Sell-Back Program whereby the Company offers to purchase Accenture Ltd Class A common shares awarded to employees pursuant to restricted share units issued in connection with its initial public offering for a total cash outlay of $7 million. The RSU Sell-Back Program was terminated, effective March 1, 2006. All remaining funding authorizations for the RSU Sell-Back Program were reallocated and made available for use in the Company’s other share purchase programs.

(4)	On March 24, 2006, an additional $500 million was authorized for purchase under the Company’s open-market share purchase program and an additional $1 billion was authorized for redemptions and purchases under the Company’s other share purchase programs.

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		Payments due by period
Contractual Cash Obligations		Total				Less than 1 year				1-3 years				3-5 years				More than 5 years
		(in millions)
Long-term debt		$	50			$	23			$	26			$	1			$	—
Operating leases			2,213				338				517				371				987
Retirement obligations(1)			214				44				73				44				53
Other commitments(2)			534				363				119				39				13
Total		$	3,011			$	768			$	735			$	455			$	1,053

(1)	This represents projected payments under our Basic Retirement Benefit and Early Retirement Plans. Because both of these plans are unfunded, we pay these benefits directly. These plans were eliminated for active partners after May 15, 2001.
(2)	Other commitments include, among other things, information technology, software support and maintenance obligations, as well as other obligations in the ordinary course of business that we cannot cancel or where we would be required to pay a termination fee in the event of cancellation. Amounts shown do not include recourse that we may have to recover termination fees or penalties from clients.

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ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

72

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ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9A.	CONTROLS AND PROCEDURES

(a)	Evaluation of Disclosure Controls and Procedures

(b)	Management’s Annual Report on Internal Control over Financial Reporting

	(i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;
	(ii) provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with the authorization of management and/or our Board of Directors; and

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	(iii) provide reasonable assurance regarding the prevention or timely detection of any unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

(c)	Changes in Internal Control over Financial Reporting

ITEM 9B.	OTHER INFORMATION

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ITEM 10.	DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

ITEM 11.	EXECUTIVE COMPENSATION

ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS

ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

ITEM 14.	PRINCIPAL ACCOUNTING FEES AND SERVICES

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ITEM 15.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES

1.	Financial Statements as of August 31, 2006 and August 31, 2005 and for the three years ended August 31, 2006—Included in Part II of this Form 10-K:

	Consolidated Balance Sheets
	Consolidated Income Statements
	Consolidated Shareholders’ Equity and Comprehensive Income Statements
	Consolidated Cash Flows Statements
	Notes to Consolidated Financial Statements

2.	Financial Statement Schedules:

	None

3.	Exhibit Index:

Exhibit
Number				Exhibit
	3	.1		Memorandum of Continuance of the Registrant, dated February 21, 2001 (incorporated by reference to Exhibit 3.1 to the Registrant’s Registration Statement on Form S-1/ A filed on July 2, 2001 (the “July 2, 2001 Form S-1/ A”)).
	3	.2		Form of Bye-laws of the Registrant, effective as of February 2, 2005 (incorporated by reference to Exhibit 3.1 to the February 28, 2005 10-Q).
	9	.1		Form of Voting Agreement, dated as of April 18, 2001, among the Registrant and the covered persons party thereto as amended and restated as of February 3, 2005 (incorporated by reference to Exhibit 9.1 to the February 28, 2005 10-Q).
	10	.1		Form of Partner Matters Agreement, dated as of April 18, 2001, among the Registrant and the partners party thereto (incorporated by reference to Exhibit 10.1 to the April 19, 2001 Form S-1).
	10	.2		Form of Non-Competition Agreement, dated as of April 18, 2001, among the Registrant and certain employees (incorporated by reference to Exhibit 10.2 to the April 19, 2001 Form S-1).
	10	.3		2001 Share Incentive Plan (incorporated by reference to Exhibit 10.3 to the Registrant’s Registration Statement on Form S-1/ A filed on July 12, 2001).
	10	.4		2001 Employee Share Purchase Plan (incorporated by reference to Exhibit 10.14 to the November 30, 2001 10-Q).
	10	.5		Form of Articles of Association of Accenture SCA, consolidated and updated as of June 28, 2005 (incorporated by reference to Exhibit 10.1 to the May 31, 2005 10-Q).
	10	.6		Form of Accenture SCA Transfer Rights Agreement, dated as of April 18, 2001, among Accenture SCA and the covered persons party thereto as amended and restated as of February 3, 2005 (incorporated by reference to Exhibit 10.2 to the February 28, 2005 10-Q).
	10	.7		Form of Non-Competition Agreement, dated as of April 18, 2001, among Accenture SCA and certain employees (incorporated by reference to Exhibit 10.7 to the April 19, 2001 Form S-1).
	10	.8		Form of Letter Agreement, dated April 18, 2001, between Accenture SCA and certain shareholders of Accenture SCA (incorporated by reference to Exhibit 10.8 to the April 19, 2001 Form S-1).
	10	.9		Form of Support Agreement, dated as of May 23, 2001, between the Registrant and Accenture Canada Holdings Inc. (incorporated by reference to Exhibit 10.9 to the July 2, 2001 Form S-1/ A).

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Exhibit
Number				Exhibit
	10	.10		Form of Employment Agreement of Messrs. Campbell, Cole, Coughlan, Frerichs, Green, McGrath, Rohleder and Scrivner and Ms. Mascolo (incorporated by reference to Exhibit 10.10 to the Registrant’s Registration Statement on Form S-1/ A filed on June 8, 2001 (the “June 8, 2001 S-1/ A”)).
	10	.11		Form of Employment Agreement of Karl-Heinz Flöther (incorporated by reference to Exhibit 10.3 to the November 30, 2001 10-Q).
	10	.12		Form of Employment Agreement of Messrs. Foster and Lajtha (incorporated by reference to Exhibit 10.8 to the November 30, 2001 10-Q).
	10	.13		Form of Employment Agreement of Gianfranco Casati (English translation) (filed herewith).
	10	.14		Form of Employment Agreement of Alexander van ’t Noordende (English translation) (filed herewith).
	10	.15		Form of Articles of Association of Accenture Canada Holdings Inc. (incorporated by reference to Exhibit 10.11 to the July 2, 2001 Form S-1/ A).
	10	.16		Form of Exchange Trust Agreement by and between the Registrant and Accenture Canada Holdings Inc. and CIBC Mellon Trust Company, made as of May 23, 2001 (incorporated by reference to Exhibit 10.12 to the July 2, 2001 Form S-1/ A).
	10	.17		Form of Letter Agreement, dated May 21, 2001, between the Registrant and Stichting Naritaweg I (incorporated by reference to Exhibit 10.13 to the July 2, 2001 Form S-1/ A).
	10	.18		Form of Letter Agreement, dated May 21, 2001, between the Registrant and Stichting Naritaweg II (incorporated by reference to Exhibit 10.14 to the July 2, 2001 Form S-1/ A).
	10	.19		Form of Transfer Restriction Agreement dated as of October 1, 2002 among Accenture Ltd and the transferors and transferees signatory thereto (incorporated by reference to Exhibit 9.1 to the November 30, 2002 10-Q).
	10	.20		Form of Transfer Restriction Agreement dated as of October 1, 2002 among Accenture SCA and the transferors and transferees signatory thereto (incorporated by reference to Exhibit 9.1 to Accenture SCA’s November 30, 2002 10-Q).
	10	.21		Form of First Amendment, dated as of May 1, 2003, to Transfer Restriction Agreement dated as of October 1, 2002 among Accenture Ltd and the transferors and transferees signatory thereto (incorporated by reference to Exhibit 99.(d)(13) to Accenture SCA’s and Accenture International SARL’s Schedule TO filed on September 30, 2003).
	10	.22		Form of First Amendment, dated as of May 1, 2003, to Transfer Restriction Agreement dated as of October 1, 2002 among Accenture SCA and the transferors and transferees signatory thereto (incorporated by reference to Exhibit 99.(d)(14) to Accenture SCA’s and Accenture International SARL’s Schedule TO filed on September 30, 2003).
	10	.23		Form of Second Amendment, dated as of October 1, 2003, to Transfer Restriction Agreement dated as of October 1, 2002 among Accenture Ltd and the transferors and transferees signatory thereto (incorporated by reference to Exhibit 99.(d)(15) to Accenture SCA’s and Accenture International SARL’s Schedule TO filed on April 29, 2004).
	10	.24		Form of Second Amendment, dated as of October 1, 2003, to Transfer Restriction Agreement dated as of October 1, 2002 among Accenture SCA and the transferors and transferees signatory thereto (incorporated by reference to Exhibit 99.(d)(16) to Accenture SCA’s and Accenture International SARL’s Schedule TO filed on April 29, 2004).
	10	.25		Form of Ltd Transfer Restriction Agreement for the Accenture Family and Charitable Transfer Program dated as of April 1, 2005 among Accenture Ltd and the transferors and transferees signatory thereto (incorporated by reference to Exhibit 10.3 to the May 31, 2005 10-Q).
	10	.26		Form of SCA Transfer Restriction Agreement for the Accenture Family and Charitable Transfer Program dated as of April 1, 2005 among Accenture SCA and the transferors and transferees signatory thereto (incorporated by reference to Exhibit 10.2 to the May 31, 2005 10-Q).
	10	.27		Form of Transfer Agreement (for transfers of “Unrestricted” Shares of Accenture Ltd) for the Accenture Family and Charitable Transfer Program dated as of April 1, 2005 among Accenture Ltd and the transferors and transferees signatory thereto (incorporated by reference to Exhibit 10.5 to the May 31, 2005 10-Q).

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Exhibit
Number				Exhibit
	10	.28		Form of Transfer Agreement (for transfers of “Unrestricted” Shares of Accenture SCA) for the Accenture Family and Charitable Transfer Program dated as of April 1, 2005 among Accenture SCA and the transferors and transferees signatory thereto (incorporated by reference to Exhibit 10.4 to the May 31, 2005 10-Q).
	10	.29		Form of Restricted Share Unit Agreement for senior executives pursuant to the Accenture Ltd 2001 Share Incentive Plan (incorporated by reference to Exhibit 4.1 to the November 30, 2004 10-Q).
	10	.30		Form of Nonqualified Share Option Agreement for senior executives pursuant to the Accenture Ltd 2001 Share Incentive Plan (incorporated by reference to Exhibit 4.2 to the November 30, 2004 10-Q).
	10	.31		Description of Annual Bonus Plan (incorporated by reference to Exhibit 10.1 to the February 28, 2006 10-Q).
	21	.1		Subsidiaries of the Registrant (filed herewith).
	23	.1		Consent of KPMG LLP (filed herewith).
	23	.2		Consent of KPMG LLP related to the Accenture Ltd 2001 Employee Share Purchase Plan (filed herewith).
	24	.1		Power of Attorney (included on the signature page hereto).
	31	.1		Certification of the Chief Executive Officer, pursuant to Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
	31	.2		Certification of the Chief Financial Officer, pursuant to Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
	32	.1		Certification of the Chief Executive Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
	32	.2		Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
	99	.1		Accenture Ltd 2001 Employee Share Purchase Plan Financial Statements (filed herewith).

78

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	Accenture Ltd

	By:	/s/ William D. Green

	Name: William D. Green
	Title: Chief Executive Officer

Signature				Title
/s/ William D. Green   William D. Green				Chief Executive Officer, Chairman of the Board and Director (principal executive officer)
/s/ Dina Dublon   Dina Dublon				Director
/s/ Dennis F. Hightower   Dennis F. Hightower				Director
/s/ Nobuyuki Idei   Nobuyuki Idei				Director

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Signature				Title
/s/ William L. Kimsey   William L. Kimsey				Director
/s/ Robert I. Lipp   Robert I. Lipp				Director
/s/ Marjorie Magner   Marjorie Magner				Director
/s/ Blythe J. Mcgarvie   Blythe J. McGarvie				Director
/s/ Sir Mark Moody Stuart   Sir Mark Moody Stuart				Director
/s/ Wulf Von Schimmelmann   Wulf von Schimmelmann				Director
/s/ Michael G. Mcgrath   Michael G. McGrath				Chief Financial Officer (principal financial officer)
/s/ Anthony G. Coughlan   Anthony G. Coughlan				Principal Accounting Officer and Controller (principal accounting officer)

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			Page
Reports of Independent Registered Public Accounting Firm				F-2
Consolidated Financial Statements as of August 31, 2006 and 2005 and for the three years ended August 31, 2006:
	Consolidated Balance Sheets			F-4
	Consolidated Income Statements			F-5
	Consolidated Shareholders’ Equity and Comprehensive Income Statements			F-6
	Consolidated Cash Flows Statements			F-8
Notes to Consolidated Financial Statements				F-9

F-1

---

 

F-2

---

 

F-3

---

 

				2006				2005
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents			$	3,066,988			$	2,483,990
	Short-term investments				352,951				463,460
	Receivables from clients, net of allowances of $48,069 and $40,821				1,916,450				1,752,937
	Unbilled services				1,350,211				1,353,676
	Deferred income taxes, net				187,720				121,386
	Other current assets				479,501				509,818
		Total current assets			7,353,821				6,685,267
NON-CURRENT ASSETS:
	Unbilled services				105,081				472,430
	Investments				125,119				262,873
	Property and equipment, net of accumulated depreciation of $1,359,978 and $1,268,658				727,692				693,710
	Goodwill				527,648				378,488
	Deferred income taxes, net				392,211				291,033
	Other non-current assets				186,508				173,551
		Total non-current assets			2,064,259				2,272,085
TOTAL ASSETS				$	9,418,080			$	8,957,352
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
	Short-term bank borrowings			$	2,218			$	13,681
	Current portion of long-term debt				22,574				17,391
	Accounts payable				856,087				807,317
	Deferred revenues				1,511,259				1,284,303
	Accrued payroll and related benefits				1,693,796				1,430,998
	Income taxes payable				722,096				831,399
	Deferred income taxes, net				49,870				42,609
	Other accrued liabilities				958,582				503,435
		Total current liabilities			5,816,482				4,931,133
NON-CURRENT LIABILITIES:
	Long-term debt				27,065				44,116
	Retirement obligation				492,555				753,558
	Deferred income taxes, net				16,880				5,621
	Other non-current liabilities				302,965				545,051
		Total non-current liabilities			839,465				1,348,346
COMMITMENTS AND CONTINGENCIES
MINORITY INTEREST					867,878				980,959
SHAREHOLDERS’ EQUITY:
	Preferred shares, 2,000,000,000 shares authorized, zero shares issued and outstanding				—				—
	Class A common shares, par value $0.0000225 per share, 20,000,000,000 shares authorized, 617,565,722 and 602,705,936 shares issued as of August 31, 2006 and August 31, 2005, respectively				14				13
	Class X common shares, par value $0.0000225 per share, 1,000,000,000 shares authorized, 245,006,562 and 321,088,062 shares issued and outstanding as of August 31, 2006 and August 31, 2005, respectively				6				7
	Restricted share units				482,289				365,708
	Additional paid-in capital				701,006				1,365,013
	Treasury shares, at cost, 36,990,533 and 32,265,976 shares as of August 31, 2006 and August 31, 2005, respectively				(869,957	)			(763,682	)
	Retained earnings				1,607,391				962,339
	Accumulated other comprehensive loss				(26,494	)			(232,484	)
		Total shareholders’ equity			1,894,255				1,696,914
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY				$	9,418,080			$	8,957,352

F-4

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				2006				2005				2004
REVENUES:
	Revenues before reimbursements			$	16,646,391			$	15,547,029			$	13,673,563
	Reimbursements				1,581,975				1,547,391				1,440,019
		Revenues			18,228,366				17,094,420				15,113,582
OPERATING EXPENSES:
	Cost of services:
		Cost of services before reimbursable expenses			11,652,352				10,454,830				9,057,246
		Reimbursable expenses			1,581,975				1,547,391				1,440,019
		Cost of services			13,234,327				12,002,221				10,497,265
	Sales and marketing				1,708,256				1,558,266				1,488,333
	General and administrative costs				1,492,690				1,511,952				1,340,467
	Reorganization and restructuring (benefits) costs				(47,966	)			(89,257	)			28,891
		Total operating expenses			16,387,307				14,983,182				13,354,956
OPERATING INCOME					1,841,059				2,111,238				1,758,626
Gain on investments, net					2,018				21,468				3,397
Interest income					129,547				108,236				59,939
Interest expense					(21,146	)			(23,973	)			(22,044	)
Other (expense) income					(27,811	)			(10,967	)			160
Equity in losses of affiliates					—				—				(1,508	)
INCOME BEFORE INCOME TAXES					1,923,667				2,206,002				1,798,570
Provision for income taxes					490,535				697,097				575,543
INCOME BEFORE MINORITY INTEREST					1,433,132				1,508,905				1,223,027
Minority interest in Accenture SCA and Accenture Canada Holdings Inc.					(447,382	)			(556,485	)			(529,672	)
Minority interest—other					(12,421	)			(11,946	)			(2,527	)
NET INCOME				$	973,329			$	940,474			$	690,828
Weighted average Class A common shares:
Basic					589,099,824				588,505,335				553,298,104
Diluted					893,810,585				960,853,814				1,003,081,228
Earnings per Class A common share:
Basic				$	1.65			$	1.60			$	1.25
Diluted				$	1.59			$	1.56			$	1.22
Cash dividends per share				$	0.30			$	—			$	—

F-5

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									Class A								Class X																Treasury
									Common Shares								Common Shares																Shares												Accumulated
																													Additional												Retained				Other
					Preferred								No.								No.				Restricted				Paid-In								No.				Earnings				Comprehensive
					Shares				$				Shares				$				Shares				Share Units				Capital				$				Shares				(Deficit)				Income (Loss)				Total
Balance as of August 31, 2003					$	—			$	10				458,629			$	11				508,723			$	557,609			$	1,501,136			$	(397,076	)			(23,311	)		$	(641,915	)		$	(188,233	)		$	831,542
Comprehensive income:
	Net income																																									690,828								690,828
	Other comprehensive income:
			Unrealized gains on marketable securities, net of reclassification adjustments																																											1,585				1,585
			Foreign currency translation adjustments																																											44,312				44,312
			Minimum pension liability adjustment, net of tax																																							(4,350	)			28,576				24,226
	Other comprehensive income																																													74,473
Comprehensive income																																																		760,951
Income tax benefit on:
	Share-based compensation plans																													30,235																				30,235
	Contract termination																																									2,073								2,073
Purchases of Class A common shares														(3,157	)															(79,491	)			(305,236	)			(12,494	)											(384,727	)
Share-based compensation expense																										59,434				1,052																				60,486
Purchases/redemptions of Accenture SCA Class I common shares and Accenture Canada Holdings Inc. exchangeable shares																		(2	)			(143,398	)							(3,089,264	)																			(3,089,266	)
Issuances of Class A common shares:
	Employee share programs													23,069												(292,580	)			325,382				273,105				16,587												305,907
	In September 2003 secondary offering									2				69,695																1,421,873																				1,421,875
	In May 2004 secondary offering									1				43,261																988,172																				988,173
Transaction fees																														25,519																				25,519
Minority interest																														519,038																				519,038
Balance as of August 31, 2004					$	—			$	13				591,497			$	9				365,325			$	324,463			$	1,643,652			$	(429,207	)			(19,218	)		$	46,636			$	(113,760	)		$	1,471,806
Comprehensive income:
	Net income																																									940,474								940,474
	Other comprehensive loss:
		Unrealized losses on marketable securities, net of reclassification adjustments																																												(2,743	)			(2,743	)
		Foreign currency translation adjustments																																												(20,284	)			(20,284	)

F-6

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								Class A								Class X																Treasury
								Common Shares								Common Shares																Shares												Accumulated
																												Additional												Retained				Other
				Preferred								No.								No.				Restricted				Paid-In								No.				Earnings				Comprehensive
				Shares				$				Shares				$				Shares				Share Units				Capital				$				Shares				(Deficit)				Income (Loss)				Total
		Minimum pension liability adjustment, net of tax																																											(95,697	)			(95,697	)
	Other comprehensive loss																																												(118,724	)
Comprehensive income																																																	821,750
Income tax benefit on:
	Share-based compensation plans																												75,532																				75,532
	Costs related to issuance of shares																												8,846																				8,846
	Contract termination																																								134								134
Purchases of Class A common shares													(562	)															(13,286	)			(503,088	)			(21,497	)											(516,374	)
Share-based compensation expense																									87,640				701																				88,341
Purchases/redemptions of Accenture SCA Class I common shares and Accenture Canada Holdings Inc. exchangeable shares																	(2	)			(44,237	)							(1,095,155	)																			(1,095,157	)
Issuances of Class A common shares related to employee share programs													11,771												(46,395	)			197,967				168,613				8,449				(24,905	)							295,280
Transaction fees																													3,427																				3,427
Minority interest																													543,329																				543,329
Balance as of August 31, 2005				$	—			$	13				602,706			$	7				321,088			$	365,708			$	1,365,013			$	(763,682	)			(32,266	)		$	962,339			$	(232,484	)		$	1,696,914
Comprehensive income:
	Net income																																								973,329								973,329
	Other comprehensive income:
		Unrealized losses on marketable securities, net of reclassification adjustments																																											(1,260	)			(1,260	)
		Foreign currency translation adjustments																																											52,423				52,423
		Minimum pension liability adjustment, net of tax																																											154,827				154,827
	Other comprehensive income																																												205,990
Comprehensive income																																																	1,179,319
Income tax benefit on:
	Share-based compensation plans																												100,508																				100,508
	Contract termination																																								497								497
Purchases of Class A common shares													(581	)															(16,192	)			(366,481	)			(15,470	)											(382,673	)
Share-based compensation expense																									152,158				112,952																				265,110
Purchases/redemptions of Accenture SCA Class I common shares and Accenture Canada Holdings Inc. exchangeable shares																	(1	)			(76,081	)							(1,704,353	)																			(1,704,354	)
Issuances of Class A common shares related to employee share programs									1				15,441												(49,141	)			273,089				260,206				10,745				(47,237	)							436,918
Dividends																									13,564																(281,537	)							(267,973	)
Minority interest																													569,989																				569,989
Balance as of August 31, 2006				$	—			$	14				617,566			$	6				245,007			$	482,289			$	701,006			$	(869,957	)			(36,991	)		$	1,607,391			$	(26,494	)		$	1,894,255

F-7

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						2006				2005				2004
CASH FLOWS FROM OPERATING ACTIVITIES:
		Net income				$	973,329			$	940,474			$	690,828
	Adjustments to reconcile Net income to Net cash provided by operating activities—
			Depreciation and amortization (including amortization of deferred charges)				320,610				282,073				257,080
			Reorganization benefits, net				(47,966	)			(89,257	)			(78,365	)
			Gains on investments, net				(2,018	)			(21,468	)			(3,397	)
			Losses on disposal of property and equipment, net				1,201				6,254				8,596
			Losses on impairment of property and equipment				31,337				—				—
			Share-based compensation expense				270,884				88,341				60,486
			Deferred income taxes, net				(223,637	)			63,139				92,864
			Minority interest				459,803				568,431				532,199
			Other, net				(346	)			2,104				(121	)
			Change in assets and liabilities, net of acquisitions—
				Receivables from clients, net			(90,458	)			(59,460	)			(182,998	)
				Other current assets			35,755				12,399				(208,802	)
				Unbilled services, current and non-current			400,142				(596,984	)			(222,428	)
				Other non-current assets			(12,655	)			(24,853	)			(84,703	)
				Accounts payable			48,157				270,499				(65,486	)
				Deferred revenues			130,504				334,121				275,371
				Accrued payroll and related benefits			228,688				(60,147	)			498,293
				Income taxes payable			(68,961	)			115,950				143,229
				Other accrued liabilities			233,961				29,714				162,675
				Other non-current liabilities			(20,341	)			25,751				(119,372	)
				Net cash provided by operating activities			2,667,989				1,887,081				1,755,949
CASH FLOWS FROM INVESTING ACTIVITIES:
		Proceeds from maturities and sales of available-for-sale investments					657,629				944,484				421,003
		Purchases of available-for-sale investments					(401,181	)			(1,019,317	)			(1,014,998	)
		Proceeds from sales of property and equipment					13,951				6,318				11,026
		Purchases of property and equipment					(306,174	)			(317,772	)			(281,986	)
		Purchases of businesses and investments, net of cash acquired					(220,985	)			(188,469	)			(31,662	)
		Other, net					4,260				—				—
				Net cash used in investing activities			(252,500	)			(574,756	)			(896,617	)
CASH FLOWS FROM FINANCING ACTIVITIES:
		Payment of retirement benefits to former pre-incorporation partners					(32,671	)			(38,453	)			(30,606	)
		Proceeds from issuance of common shares					436,918				298,707				2,741,474
		Purchases of common shares					(2,087,027	)			(1,625,097	)			(3,459,934	)
		Proceeds from long-term debt					29,742				6,061				799
		Repayments of long-term debt					(36,056	)			(9,467	)			(4,058	)
		Proceeds from short-term borrowings					40,269				61,834				96,851
		Repayments of short-term borrowings					(52,657	)			(71,043	)			(115,491	)
		Decrease in restricted cash of Accenture Share Employee Compensation Trust					—				—				83,280
		Cash dividends paid					(267,973	)			—				—
		Excess tax benefits from share-based payment arrangements					42,832				—				—
		Other, net					(7,844	)			—				—
				Net cash used in financing activities			(1,934,467	)			(1,377,458	)			(687,685	)
		Effect of exchange rate changes on cash and cash equivalents					101,976				(3,835	)			49,150
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS							582,998				(68,968	)			220,797
CASH AND CASH EQUIVALENTS, beginning of period							2,483,990				2,552,958				2,332,161
CASH AND CASH EQUIVALENTS, end of period						$	3,066,988			$	2,483,990			$	2,552,958
Supplemental cash flow information
		Interest paid				$	20,837			$	23,597			$	21,970
		Income taxes paid				$	768,313			$	573,026			$	387,450

F-8

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1.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

F-9

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F-10

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		Year Ended August 31,
		2006				2005				2004
Training costs		$	680,662			$	546,248			$	401,266
Research and development costs			298,354				243,449				271,943
Advertising costs			68,810				65,902				61,932
Provision for (release of) doubtful accounts			9,389				(3,849	)			(641	)

F-11

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F-12

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Buildings		20 to 25 years
Computers, related equipment and software		2 to 7 years
Furniture and fixtures		5 to 10 years
Leasehold improvements		Lesser of lease term or 15 years

F-13

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F-14

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2.	EARNINGS PER SHARE

		Year Ended August 31,
		2006				2005				2004
Basic Earnings per share
Net income available for Class A common shareholders		$	973,329			$	940,474			$	690,828
Basic weighted average Class A common shares			589,099,824				588,505,335				553,298,104
Basic earnings per share		$	1.65			$	1.60			$	1.25
Diluted Earnings per share
Net income available for Class A common shareholders		$	973,329			$	940,474			$	690,828
Minority interest in Accenture SCA and Accenture Canada Holdings Inc.(1)			447,382				556,485				529,672
Net income for per share calculation		$	1,420,711			$	1,496,959			$	1,220,500
Basic weighted average Class A common shares			589,099,824				588,505,335				553,298,104
Class A common shares issuable upon redemption/exchange of minority interest(1)			274,435,250				349,231,576				423,374,821
Diluted effect of employee compensation related to Class A common shares			30,091,794				22,817,960				26,111,476
Diluted effect of employee share purchase plan related to Class A common shares			183,717				298,943				296,827
Weighted average Class A common shares			893,810,585				960,853,814				1,003,081,228
Diluted earnings per share		$	1.59			$	1.56			$	1.22

(1)

Diluted earnings per share assumes the redemption and exchange of all Accenture SCA Class I common shares and Accenture Canada Holdings Inc. exchangeable shares, respectively, for Accenture Ltd Class A common shares on a one-for-one basis. The income effect does not take into account “Minority interest—other,” since those shares are not redeemable or exchangeable for Accenture Ltd Class A common shares.

F-15

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3.	RESTRUCTURING AND REORGANIZATION (BENEFITS) COSTS

		Year Ended August 31,
		2006				2005
Restructuring liability balance, beginning of period		$	69,919			$	102,761
Payments made			(20,884	)			(29,582	)
Other(1)			4,474				(3,260	)
Restructuring liability, end of period		$	53,509			$	69,919

(1)	Other represents imputed interest, immaterial changes in lease estimates and foreign currency translation.

F-16

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				Year Ended August 31,
				2006				2005				2004
Reorganization liability balance, beginning of period				$	381,440			$	454,042			$	510,149
	Final determinations(1)				(72,362	)			(115,444	)			(80,112	)
	Changes in estimates				—				—				(25,547	)
		Benefit recorded			(72,362	)			(115,444	)			(105,659	)
	Interest expense accrued				24,396				26,187				27,294
	Payments				—				—				—
Benefits, net of accrued interest and payments					(47,966	)			(89,257	)			(78,365	)
Foreign currency translation					17,390				16,655				22,258
Reorganization liability, end of period				$	350,864			$	381,440			$	454,042

(1)	Includes final agreements with tax authorities and expirations of statutes of limitations.

4.	ACCUMULATED OTHER COMPREHENSIVE LOSS

		August 31,
		2006				2005
Unrealized losses on marketable securities, net of reclassification adjustments		$	(3,479	)		$	(2,219	)
Foreign currency translation adjustments			9,387				(43,036	)
Minimum pension liability adjustment, net of tax of $22,863 and $125,057, respectively			(32,402	)			(187,229	)
Accumulated other comprehensive loss		$	(26,494	)		$	(232,484	)

F-17

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5.	PROPERTY AND EQUIPMENT

			August 31,
			2006				2005
Buildings and land			$	3,870			$	3,272
Computers, related equipment and software				1,245,334				1,218,029
Furniture and fixtures				308,192				281,624
Leasehold improvements				530,274				459,443
	Property and equipment, gross			2,087,670				1,962,368
Total accumulated depreciation				(1,359,978	)			(1,268,658	)
Property and equipment, net			$	727,692			$	693,710

6.	BUSINESS COMBINATIONS AND GOODWILL

F-18

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										Foreign												Foreign
		Balance at								Currency				Balance at								Currency				Balance at
		August 31,				Additions/				Translation				August 31,				Additions/				Translation				August 31,
		2004				Adjustments				Adjustments				2005				Adjustments				Adjustments				2006
Communications & High Tech		$	70,949			$	3,889			$	(1,752	)		$	73,086			$	5,128			$	4,525			$	82,739
Financial Services			43,668				8,800				(899	)			51,569				69,650				2,373				123,592
Government			23,242				2,083				(392	)			24,933				6,568				1,752				33,253
Products			46,402				151,276				(741	)			196,937				56,111				5,342				258,390
Resources			30,221				2,336				(594	)			31,963				(3,950	)			1,661				29,674
Total		$	214,482			$	168,384			$	(4,378	)		$	378,488			$	133,507			$	15,653			$	527,648

F-19

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7.	INVESTMENTS AND FINANCIAL INSTRUMENTS

				Amortized				Unrealized				Unrealized				Estimated
				Cost				Gains				Losses				Fair Value
August 31, 2006
Available-for-sale debt securities
	Asset-backed securities			$	24,759			$	—			$	(536	)		$	24,223
	Certificates of deposit and time deposits				50,105				6				—				50,111
	Corporate debt securities				331,979				79				(1,551	)			330,507
	Foreign government securities				3,803				1				(125	)			3,679
	U.S. Treasury securities				67,455				—				(1,592	)			65,863
		Total available-for-sale debt securities			478,101				86				(3,804	)			474,383
Available-for-sale equity securities					2,018				297				(58	)			2,257
		Total available-for-sale securities			480,119				383				(3,862	)			476,640
Other					1,430				—				—				1,430
		Total investments at August 31, 2006		$	481,549			$	383			$	(3,862	)		$	478,070
August 31, 2005
Available-for-sale debt securities
	Asset-backed securities			$	28,568			$	20			$	(616	)		$	27,972
	Certificates of deposit and time deposits				46,000				1				—				46,001
	Corporate debt securities				537,660				313				(1,153	)			536,820
	Foreign government securities				3,356				52				(10	)			3,398
	U.S. Treasury securities				99,204				—				(906	)			98,298
		Total available-for-sale debt securities			714,788				386				(2,685	)			712,489
Available-for-sale equity securities					11,482				161				(81	)			11,562
		Total available-for-sale securities			726,270				547				(2,766	)			724,051
Other					2,282				—				—				2,282
		Total investments at August 31, 2005		$	728,552			$	547			$	(2,766	)		$	726,333

F-20

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		August 31, 2006
		Amortized				Estimated
		Cost				Fair Value
Due in 1 year or less		$	353,565			$	352,891
Due in 1-2 years			43,370				42,450
Due in 2-3 years			53,877				52,375
Due in 3-4 years			8,683				8,434
Due in 4-5 years			13,364				13,106
Due after 5 years			5,242				5,127
Total available-for-sale debt securities		$	478,101			$	474,383

		August 31,
		2006				2005				2004
Available-for-sale investments
Proceeds from sale		$	153,364			$	43,452			$	421,003
Gross realized gains			3,347				26,291				9,357
Gross realized losses			305				3,956				8,382

			August 31,
			2006								2005
			Notional				Fair				Notional				Fair
			Value				Value				Value				Value
Foreign currency forward exchange contracts:
	To sell		$	176,486			$	(4,740	)		$	287,794			$	(527	)
	To buy			471,280				(2,908	)			372,204				(172	)

F-21

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8.	BORROWINGS AND INDEBTEDNESS

		Facility Amount
Syndicated loan facility(1)		$	1,200,000
Separate bilateral, uncommitted, unsecured multicurrency revolving credit facilities(2)			350,000
Local guaranteed and non-guaranteed lines of credit(3)			136,000
Total		$	1,686,000

(1)	On July 31, 2006, we replaced our $1,500,000 syndicated loan facility maturing on June 18, 2009 with a $1,200,000 syndicated loan facility maturing on July 31, 2011. This new facility provides unsecured, revolving borrowing capacity for general working capital purposes, including the issuance of letters of credit. Financing is provided under this facility at the prime rate or at the London Interbank Offered Rate plus a spread. This facility requires us to: (1) limit liens placed on our assets to (a) liens incurred in the ordinary course of business (subject to certain qualifications) and (b) other liens securing obligations not to exceed 30% of the Company’s consolidated assets; and (2) maintain a debt-to-cash-flow ratio not exceeding 1.75 to 1.00. We continue to be in compliance with these terms. As of August 31, 2006, we had no borrowings under the facility. The facility is subject to annual commitment fees.
(2)	We maintain three separate bilateral, uncommitted and unsecured multicurrency revolving credit facilities. These facilities provide local currency financing for the majority of our operations. Interest rate terms on the bilateral revolving facilities are at market rates prevailing in the relevant local markets. Effective August 31, 2006, we amended two of the bilateral credit facilities, which increased total capacity by $100,000 to $350,000. As of August 31, 2006 and 2005, we had $2,218 and $4,401, respectively, of borrowings under these facilities. The weighted average interest rate on borrowings under these multicurrency credit facilities and lines of credit, based on the average annual balances, was approximately 5% in fiscal 2006 and 7% in fiscal 2005 and 2004.
(3)	We also maintain local guaranteed and non-guaranteed lines of credit for those locations that cannot access our global facilities. At August 31, 2006, we had no borrowings under these various facilities.

F-22

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9.	INCOME TAXES

				Year Ended August 31,
				2006				2005				2004
Current taxes:
	U.S. Federal			$	293,733			$	138,457			$	135,510
	U.S. state and local				41,961				19,779				19,359
	Non-U.S.				375,376				478,049				318,800
		Total current tax expense			711,070				636,285				473,669
Deferred taxes:
	U.S. Federal				(179,505	)			55,344				52,399
	U.S. state and local				(25,643	)			7,906				7,486
	Non-U.S.				(15,387	)			(2,438	)			41,989
		Total deferred tax (benefit) expense			(220,535	)			60,812				101,874
Total				$	490,535			$	697,097			$	575,543

		Year Ended August 31,
		2006				2005				2004
U.S. sources		$	648,283			$	682,030			$	503,257
Non-U.S. sources			1,275,384				1,523,972				1,295,313
Total		$	1,923,667			$	2,206,002			$	1,798,570

F-23

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			Year Ended August 31,
			2006				2005				2004
U.S. Federal statutory income tax rate				35.0	%			35.0	%			35.0	%
U.S. state and local taxes, net				1.7				1.6				1.4
Reorganization benefits				(0.9	)			(1.4	)			(1.5	)
Other final determinations(1)				(10.8	)			(6.4	)			(2.2	)
Deferred tax revaluation(2)				(3.8	)			—				—
Non-U.S. operations				0.5				(0.4	)			(1.4	)
Other				3.8				3.2				0.7
	Effective income tax rate			25.5	%			31.6	%			32.0	%

(1)	Final determinations include final agreements with tax authorities and expirations of statutes of limitations.
(2)	Related to updated estimates of the probable future benefit of certain deferred tax assets.

				Year Ended August 31,
				2006				2005
Deferred tax assets:
	Pensions			$	77,845			$	161,197
	Revenue recognition				43,747				55,235
	Compensation and benefits				165,180				121,060
	Share-based compensation				161,220				26,778
	Tax credit carryforwards				13,937				11,449
	Net operating loss carryforwards				271,458				220,373
	Depreciation and amortization				144,023				119,322
	Other				48,513				72,944
					925,923				788,358
		Valuation allowance			(198,654	)			(270,630	)
	Total deferred tax assets				727,269				517,728
Deferred tax liabilities:
	Revenue recognition				(71,319	)			(46,740	)
	Depreciation and amortization				(58,660	)			(58,479	)
	Investments				(51,375	)			(23,357	)
	Other				(32,734	)			(24,963	)
	Total deferred tax liabilities				(214,088	)			(153,539	)
Net deferred tax assets				$	513,181			$	364,189

F-24

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F-25

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10.	RETIREMENT AND PROFIT SHARING PLANS

F-26

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		Pension Benefits
		Year Ended August 31,
		2006								2005								2004
						Non-U.S.								Non-U.S.								Non-U.S.
		U.S. Plans				Plans				U.S. Plans				Plans				U.S. Plans				Plans
Components of pension expense
Service cost		$	64,410			$	51,496			$	49,518			$	45,054			$	45,247			$	34,802
Interest cost			49,923				20,865				42,760				18,037				36,262				12,799
Expected return on plan assets			(52,318	)			(19,833	)			(42,892	)			(15,305	)			(24,735	)			(9,932	)
Amortization of transitional obligation			—				—				—				—				—				(213	)
Amortization of loss/(gain)			31,140				1,962				13,675				(1,023	)			20,673				782
Amortization of prior service cost			1,149				709				1,291				1,579				2,472				90
Curtailment loss recognized			—				183				—				243				—				—
Special termination benefits charge			—				1,582				—				1,299				—				3,643
Total		$	94,304			$	56,964			$	64,352			$	49,884			$	79,919			$	41,971

		Postretirement Benefits
		Year Ended August 31,
		2006								2005								2004
						Non-U.S.								Non-U.S.								Non-U.S.
		U.S. Plans				Plans				U.S. Plans				Plans				U.S. Plans				Plans
Components of postretirement expense
Service cost		$	10,102			$	2,061			$	7,091			$	1,646			$	7,263			$	1,677
Interest cost			6,150				1,766				5,534				1,776				5,167				1,561
Expected return on plan assets			(1,419	)			—				(1,335	)			—				(1,424	)			—
Amortization of transitional obligation			79				—				79				—				79				204
Amortization of loss			2,518				198				1,493				94				2,401				74
Amortization of prior service cost			(801	)			(281	)			(801	)			(161	)			(801	)			—
Curtailment loss recognized			—				(472	)			—				(222	)			—				—
Total		$	16,629			$	3,272			$	12,061			$	3,133			$	12,685			$	3,516

F-27

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		Pension Benefits
		Year Ended August 31,
		2006								2005								2004
						Non-U.S.								Non-U.S.								Non-U.S.
		U.S. Plans				Plans				U.S. Plans				Plans				U.S. Plans				Plans
Discount rate			5.25	%			4.28	%			6.25	%			4.93	%			6.00	%			4.85	%
Expected rate of return on plan assets			7.50				5.57				7.50				5.19				8.00				5.66
Rate of increase in future compensation			4.50				3.27				4.50				3.16				4.50				3.10

Postretirement Benefits

Year Ended August 31,

2006

2005

2004

Non-U.S.

Non-U.S.

Non-U.S.

U.S. Plans

Plans

U.S. Plans

Plans

U.S. Plans

Plans

Discount rate

5.25%

5.50

%

6.25%

6.75

%

6.00%

6.50

%

Expected rate of return on plan assets

7.50/3.50

N/A

7.50/3.50

N/A

8.00/5.00

N/A

Rate of increase in future compensation

N/A

3.50

N/A

4.50

N/A

4.00

		Pension Benefits																Postretirement Benefits
		Year Ended August 31,																Year Ended August 31,
		2006								2005								2006								2005
						Non-U.S.								Non-U.S.								Non-U.S.								Non-U.S.
		U.S. Plans				Plans				U.S. Plans				Plans				U.S. Plans				Plans				U.S. Plans				Plans
Discount rate			6.50	%			4.68	%			5.25	%			4.28	%			6.50%				6.00	%			5.25%				5.50	%
Rate of increase in future compensation			4.50				3.45				4.50				3.27				N/A				2.90				N/A				3.50

F-28

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		Pension Benefits																Postretirement Benefits
		Year Ended August 31,																Year Ended August 31,
		2006								2005								2006								2005
						Non-U.S.								Non-U.S.								Non-U.S.								Non-U.S.
		U.S. Plans				Plans				U.S. Plans				Plans				U.S. Plans				Plans				U.S. Plans				Plans
Changes in benefit obligation
Benefit obligation, beginning of year		$	957,547			$	511,585			$	692,028			$	335,819			$	118,336			$	31,411			$	89,476			$	25,054
Service cost			64,410				51,496				49,518				45,054				10,102				2,061				7,091				1,646
Interest cost			49,923				20,865				42,760				18,037				6,150				1,766				5,534				1,776
Amendments			—				(11,794	)			—				1,365				—				(5,687	)			—				(3,858	)
Termination benefits			—				1,582				—				1,299				—				—				—				—
Participant contributions			—				6,544				—				6,366				—				—				—				—
Acquisitions/divestitures/transfers			—				39,325				—				75,024				—				—				—				—
Curtailments			—				(1,300	)			—				(540	)			—				(2,136	)			—				(263	)
Actuarial loss(gain)			(215,857	)			(3,317	)			189,769				73,364				(37,868	)			(3,478	)			19,555				4,160
Benefits paid			(15,752	)			(28,676	)			(16,528	)			(39,369	)			(1,782	)			(250	)			(3,320	)			(130	)
Exchange rate loss			—				29,968				—				2,212				—				2,075				—				3,026
Settlements			—				—				—				(7,046	)			—				—				—				—
Benefit obligation, end of year		$	840,271			$	616,278			$	957,547			$	511,585			$	94,938			$	25,762			$	118,336			$	31,411
Changes in plan assets
Fair value of plan assets, beginning of year		$	701,343			$	344,088			$	470,792			$	243,424			$	25,643			$	—			$	24,585			$	—
Actual return on plan assets			81,086				23,998				63,227				24,998				1,839				—				1,647				—
Acquisitions/divestitures/transfers			2,733				28,550				—				70,004				—				—				—				—
Employer contributions			32,234				60,414				183,852				40,780				877				250				180				130
Participant contributions			—				6,544				—				6,366				—				—				2,551				—
Benefits paid			(15,752	)			(28,676	)			(16,528	)			(39,369	)			(1,782	)			(250	)			(3,320	)			(130	)
Exchange rate gain			—				23,573				—				4,931				—				—				—				—
Settlements			—				—				—				(7,046	)			—				—				—				—
Fair value of plan assets, end of year		$	801,644			$	458,491			$	701,343			$	344,088			$	26,577			$	—			$	25,643			$	—
Reconciliation of funded status
Funded status		$	(38,627	)		$	(157,787	)		$	(256,204	)		$	(167,497	)		$	(68,361	)		$	(25,762	)		$	(92,693	)		$	(31,411	)
Unrecognized transitional obligation			—				—				—				—				519				—				598				—
Unrecognized loss			59,117				63,918				337,615				71,192				2,132				1,683				43,141				7,187
Unrecognized prior service cost			2,739				(7,913	)			3,888				5,215				(7,306	)			(9,268	)			(8,107	)			(3,838	)
Contribution made after measurement date			—				1,985				—				1,499				—				44				(112	)			24
Net amount recognized at year-end		$	23,229			$	(99,797	)		$	85,299			$	(89,591	)		$	(73,016	)		$	(33,303	)		$	(57,173	)		$	(28,038	)
Amounts recognized in the Consolidated Balance Sheets consist of:
Prepaid benefit cost		$	110,377			$	11,175			$	10,274			$	10,441			$	—			$	—			$	—			$	—
Accrued benefit liability			(122,350	)			(131,035	)			(205,404	)			(135,238	)			(73,016	)			(33,303	)			(57,173	)			(28,038	)
Intangible asset			—				—				3,339				10				—				—				—				—
Accumulated other comprehensive loss			35,202				20,063				277,090				35,196				—				—				—				—
Net amount recognized at year-end		$	23,229			$	(99,797	)		$	85,299			$	(89,591	)		$	(73,016	)		$	(33,303	)		$	(57,173	)		$	(28,038	)

F-29

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		August 31,
		2006								2005
						Non-U.S.								Non-U.S.
		U.S. Plans				Plans				U.S. Plans				Plans
Accumulated benefit obligation		$	790,288			$	518,723			$	903,306			$	434,596

		2006								2005
						Non-U.S.								Non-U.S.
		U.S. Plans				Plans				U.S. Plans				Plans
Projected benefit obligation in excess of plan assets:
Projected benefit obligation		$	122,350			$	446,652			$	911,808			$	434,117
Fair value of plan assets			—				271,545				654,948				256,790
Accumulated benefit obligation in excess of plan assets:
Accumulated benefit obligation		$	122,350			$	186,122			$	860,352			$	321,681
Fair value of plan assets			—				75,324				654,948				200,533

	U.S. Pension Plans

F-30

---

 

	Non-U.S. Pension Plans

F-31

---

 

	Pension Plans

										Plan Assets at August 31,
		2007 Target
		Allocation								2006								2005
						Non-U.S.								Non-U.S.								Non-U.S.
		U.S. Plans				Plans				U.S. Plans				Plans				U.S. Plans				Plans
Asset Category
Equity securities			79	%			35-45	%			79	%			44	%			76	%			30	%
Debt securities			21				35-45				21				39				20				32
Cash and short-term investments			—				0-5				—				2				—				19
Insurance contracts			—				0-5				—				13				—				13
Other			—				10-15				—				2				4				6
Total			100	%			n/m				100	%			100	%			100	%			100	%

	U.S. Postretirement Plan(1)

						Plan Assets at
						August 31,
		2007 Target
		Allocation				2006				2005
Asset Category
Equity securities			39	%			37	%			35	%
Debt securities			21				20				19
Cash and short-term investments			40				43				46
Total			100	%			100	%			100	%

(1)	The non-U.S. plans are unfunded and thus the table only relates to the U.S. Plans.

F-32

---

 

		Pension Benefits								Postretirement Benefits
						Non-U.S.								Non-U.S.
		U.S. Plans				Plans				U.S. Plans				Plans
2007		$	16,780			$	13,584			$	2,758			$	330
2008			18,630				13,837				3,260				422
2009			20,879				14,793				3,785				490
2010			23,603				15,961				4,287				569
2011			26,497				17,622				4,923				668
2012-2016			182,665				114,059				30,420				5,393

		One Percentage Point								One Percentage Point
		Increase								Decrease
		2006				2005				2006				2005
Effect on total of service and interest cost components		$	3,119			$	2,527			$	(2,415	)		$	(2,056	)
Effect on year-end postretirement benefit obligation			11,526				22,362				(9,560	)			(17,375	)

F-33

---

 

11.	SHARE-BASED COMPENSATION

F-34

---

 

		Year Ended August 31, 2006
						Under APB
		As Reported				No. 25
Income before income taxes		$	1,923,667			$	2,021,574
Income before minority interest			1,433,132				1,497,359
Net income			973,329				1,017,145
Cash flows provided by operating activities			2,667,989				2,710,821
Cash flows used in financing activities			(1,934,467	)			(1,977,299	)
Basic earnings per share		$	1.65			$	1.73
Diluted earnings per share		$	1.59			$	1.67

			Year Ended August 31,
			2005				2004
Net income as reported			$	940,474			$	690,828
	Add: Share-based compensation expense already included in Net income as reported, net of tax and minority interest			52,140				31,446
	Deduct: Pro forma employee compensation cost related to stock options, restricted share units and employee share purchase plan, net of tax and minority interest			(150,105	)			(85,545	)
	Subtotal			(97,965	)			(54,099	)
Pro forma net income			$	842,509			$	636,729
Basic earnings per Class A common share:
	As reported		$	1.60			$	1.25
	Pro forma		$	1.43			$	1.15
Diluted earnings per Class A common share:
	As reported		$	1.56			$	1.22
	Pro forma		$	1.40			$	1.12

F-35

---

 

		Year Ended August 31,
		2006				2005				2004
Total share-based compensation expense included in Net income		$	270,884			$	88,341			$	60,486
Income tax benefit related to share-based compensation included in Net income		$	93,029			$	8,274			$	5,696

	Restricted Share Units

			2006
			Number of				Weighted Average
			Restricted Share				Grant-Date Fair
			Units				Value
Nonvested balance as of August 31, 2005				18,122,113			$	26.65
	Granted			19,063,320				25.73
	Vested			(2,385,703	)			21.80
	Forfeited			(1,390,461	)			21.61
Nonvested balance as of August 31, 2006				33,409,269			$	23.89

F-36

---

 

	Stock Options

											Weighted Average
											Remaining
							Weighted Average				Contractual Term				Aggregate Intrinsic
			Number of Options				Exercise Price				(In Years)				Value
Options outstanding as of August 31, 2005				73,848,900			$	18.27				6.6			$	448,382
	Granted			436,642			$	26.24
	Exercised			(15,009,940	)		$	15.84
	Forfeited			(1,693,331	)		$	21.90
Options outstanding as of August 31, 2006				57,582,271			$	18.84				6.3			$	595,954
Options exercisable as of August 31, 2006				44,177,710			$	17.35				5.8			$	522,702
Options exercisable as of August 31, 2005				49,098,967			$	15.99				5.9			$	412,308
Options exercisable as of August 31, 2004				36,387,546			$	14.66				6.0			$	413,345

		Year Ended August 31,
		2006				2005				2004
Weighted average grant-date fair value of stock options granted		$	11.13			$	11.30			$	9.66
Total fair value of stock options vested		$	102,333			$	183,304			$	122,680
Total intrinsic value of stock options exercised		$	197,111			$	89,219			$	112,779

F-37

---

 

		Year Ended August 31,
		2006(1)				2005								2004
		Senior				Senior				Other				Senior				Other
		Executives				Executives				Employees				Executives				Employees
Expected life (in years)			7.4				6.0				5.0				6.0				5.0
Risk-free interest rate			4.15	%			4.02	%			3.52	%			3.58	%			3.29	%
Expected volatility			37	%			41	%			41	%			44	%			44	%
Expected dividend yield			1	%			0	%			0	%			0	%			0	%

(1)	No stock options were granted to “Other Employees” during fiscal 2006.

F-38

---

 

12.	SHAREHOLDERS’ EQUITY

F-39

---

 

	Accenture SCA Class I Common Shares

F-40

---

 

F-41

---

 

13.	MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS’ EQUITY

F-42

---

 

		Open-Market Share								Other Share Purchase
		Purchase Program								Programs
		Shares				Amount				Shares				Amount				Total
Available authorization as of August 31, 2003						$	82,127							$	288,742			$	370,869
Purchases and redemptions			8,413,050				(201,326	)			29,619,979				(664,338	)			(865,664	)
Additional authorizations							180,777								600,000				780,777
Available authorization as of August 31, 2004							61,578								224,404				285,982
Purchases and redemptions(1)			20,566,470				(480,470	)			45,147,483				(1,103,291	)			(1,583,761	)
Additional authorizations(2)							1,000,000								2,000,000				3,000,000
Available authorization as of August 31, 2005							581,108								1,121,113				1,702,221
Purchases and redemptions(3)			3,491,500				(102,769	)			43,301,787				(1,179,219	)			(1,281,988	)
Additional authorizations(4)							500,000								1,000,000				1,500,000
Available authorization as of August 31, 2006						$	978,339							$	941,894			$	1,920,233

(1)	Other Share Purchase Programs include the following purchase activity during fiscal 2005:

	•	44,105,764 Accenture SCA Class I common shares redeemed or purchased for a total cash outlay of $1,077,736 and 643,325 Accenture Canada Holdings Inc. exchangeable shares purchased for a total cash outlay of $15,719; and
	•	398,394 shares purchased through the RSU Sell-Back Program for a total cash outlay of $9,836.

(2)	On October 15, 2004, an additional $1,000,000 was authorized for purchase under the Company’s open-market share purchase program and an additional $2,000,000 was authorized for redemptions and purchases under the Company’s other share purchase programs.
(3)	Other Share Purchase Programs include the following purchase activity during fiscal 2006:

	•	31,416,894 Accenture SCA Class I common shares redeemed or purchased for a total cash outlay of $917,705 and 421,194 Accenture Canada Holdings Inc. exchangeable shares purchased for a total cash outlay of $12,130;
	•	11,231,941 Accenture Ltd Class A common shares purchased for an aggregate purchase price of $242,725; and

F-43

---

 

	•	231,758 shares purchased through the RSU Sell-Back Program whereby the Company offers to purchase Accenture Ltd Class A common shares awarded to employees pursuant to restricted share units issued in connection with its initial public offering for a total cash outlay of $6,659. The RSU Sell-Back Program was terminated, effective March 1, 2006. All remaining funding authorizations for the RSU Sell-Back Program were reallocated and made available for use in the Company’s other share purchase programs.

(4)	On March 24, 2006, an additional $500,000 was authorized for purchase under the Company’s open-market share purchase program and an additional $1,000,000 was authorized for redemptions and purchases under the Company’s other share purchase programs.

F-44

---

 

14.	LEASE COMMITMENTS

		August 31,
		2006				2005				2004
Rental expense		$	413,722			$	371,554			$	287,559
Sublease income from third parties		$	29,249			$	23,485			$	22,806

F-45

---

 

		Operating				Operating
		Lease				Sublease
		Payments				Income
2007		$	338,075			$	(18,657	)
2008			286,959				(28,589	)
2009			230,316				(30,444	)
2010			192,327				(29,051	)
2011			178,513				(30,208	)
Thereafter			986,479				(143,037	)
		$	2,212,669			$	(279,986	)

15.	COMMITMENTS AND CONTINGENCIES

F-46

---

 

F-47

---

 

16.	SEGMENT REPORTING

Year Ended August 31:
		Comm. &				Financial
2006		High Tech				Services				Government				Products				Resources				Other				Total
Revenues before reimbursements		$	4,177,061			$	3,558,147			$	2,221,121			$	4,010,698			$	2,665,778			$	13,586			$	16,646,391
Depreciation(1)			58,307				57,437				60,421				47,350				43,339				—				266,854
Operating income			630,502				387,786				83,416				399,853				339,502				—				1,841,059
Assets at August 31(2)			550,333				86,733				528,415				357,364				316,399				21,239				1,860,483

2005
Revenues before reimbursements		$	4,001,347			$	3,408,166			$	2,171,458			$	3,569,975			$	2,388,845			$	7,238			$	15,547,029
Depreciation(1)			66,055				61,121				56,508				56,725				41,664				—				282,073
Operating income			673,183				499,647				168,736				413,188				356,484				—				2,111,238
Assets at August 31(2)			571,292				81,849				738,575				435,515				315,722				151,787				2,294,740

F-48

---

 

2004
Revenues before reimbursements		$	3,741,451			$	2,770,990			$	1,994,655			$	2,978,892			$	2,178,569			$	9,006			$	13,673,563
Depreciation(1)			81,739				66,813				35,463				56,112				39,869				—				279,996
Operating income			403,698				353,904				311,050				414,501				275,473				—				1,758,626
Assets at August 31(2)			542,746				114,207				581,301				354,003				217,217				133,851				1,943,325

(1)	This amount includes depreciation on property and equipment controlled by each operating segment, as well as an allocation for depreciation on property and equipment they do not directly control.
(2)	Operating segment assets directly attributed to an operating segment and provided to the chief operating decision maker include Receivables from clients, current and non-current Unbilled services and Deferred revenues.

		Year Ended August 31,
Increase (Decrease) to Operating Income		2006				2005				2004
Communications & High Tech		$	12,609			$	21,274			$	(7,230	)
Financial Services			11,864				20,643				(6,403	)
Government			4,618				13,335				(4,247	)
Products			10,523				21,019				(6,356	)
Resources			8,352				12,986				(4,655	)
Total		$	47,966			$	89,257			$	(28,891	)

Year Ended August 31:		Americas				EMEA(1)				Asia Pacific				Total
2006
Revenues before reimbursements		$	7,741,139			$	7,643,712			$	1,261,540			$	16,646,391
Reimbursements			824,750				637,152				120,073				1,581,975
Revenues			8,565,889				8,280,864				1,381,613				18,228,366
Long-lived assets at August 31			330,185				247,944				149,563				727,692
2005
Revenues before reimbursements		$	6,729,626			$	7,734,932			$	1,082,471			$	15,547,029
Reimbursements			732,493				708,305				106,593				1,547,391
Revenues			7,462,119				8,443,237				1,189,064				17,094,420
Long-lived assets at August 31			267,757				294,262				131,691				693,710
2004
Revenues before reimbursements		$	6,133,081			$	6,572,011			$	968,471			$	13,673,563
Reimbursements			682,087				627,368				130,564				1,440,019
Revenues			6,815,168				7,199,379				1,099,035				15,113,582
Long-lived assets at August 31			282,431				253,323				108,192				643,946

(1)	EMEA includes Europe, Middle East and Africa.

F-49

---

 

		August 31,
		2006				2005				2004
United States			39	%			37	%			39	%
United Kingdom			13				17				16

		August 31,
		2006				2005				2004
United States			40	%			34	%			37	%
United Kingdom			13				20				12
India			11				10				9

			Year Ended August 31,
			2006				2005				2004
Consulting			$	9,892,128			$	9,559,157			$	8,589,645
Outsourcing				6,754,263				5,987,872				5,083,918
	Revenues before reimbursements			16,646,391				15,547,029				13,673,563
Reimbursements				1,581,975				1,547,391				1,440,019
	Revenues		$	18,228,366			$	17,094,420			$	15,113,582

F-50

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17.	QUARTERLY DATA (unaudited)

			First				Second				Third				Fourth
Year Ended August 31, 2006			Quarter				Quarter				Quarter				Quarter				Annual
Revenues before reimbursements			$	4,169,475			$	4,102,795			$	4,408,069			$	3,966,052			$	16,646,391
Reimbursements				373,541				388,317				397,258				422,859				1,581,975
Revenues				4,543,016				4,491,112				4,805,327				4,388,911				18,228,366
Operating income				512,556				137,312				690,124				501,067				1,841,059
Net income			$	214,940			$	69,680			$	342,264				346,445			$	973,329
Earnings per Class A common share:
	— Basic		$	0.37			$	0.12			$	0.58			$	0.58			$	1.65
	— Diluted		$	0.36			$	0.11			$	0.56			$	0.56			$	1.59
Weighted average Class A common shares:
	— Basic			586,267,569				585,674,656				589,933,994				592,545,040				589,099,824
	— Diluted			913,640,289				892,439,424				886,889,939				880,535,375				893,810,585
Common stock price per share:
	— High		$	28.63			$	33.05			$	32.94			$	29.66			$	33.05
	— Low		$	24.45			$	28.02			$	26.17			$	25.68			$	24.45

			First				Second				Third				Fourth
Year Ended August 31, 2005			Quarter				Quarter				Quarter				Quarter				Annual
Revenues before reimbursements			$	3,730,355			$	3,813,522			$	4,078,573			$	3,924,579			$	15,547,029
Reimbursements				341,017				402,862				419,037				384,475				1,547,391
Revenues				4,071,372				4,216,384				4,497,610				4,309,054				17,094,420
Operating income				458,150				471,952				671,948				509,188				2,111,238
Net income			$	196,273			$	209,786			$	305,280			$	229,135			$	940,474
Earnings per Class A common share:
	— Basic		$	0.33			$	0.35			$	0.52			$	0.39			$	1.60
	— Diluted		$	0.32			$	0.35			$	0.51			$	0.38			$	1.56
Weighted average Class A common shares:
	— Basic			590,029,649				591,694,862				587,277,097				584,088,816				588,505,335
	— Diluted			980,623,940				980,080,181				952,292,398				931,041,385				960,853,814
Common stock price per share:
	— High		$	27.58			$	27.60			$	25.97			$	25.70			$	27.60
	— Low		$	22.61			$	24.39			$	21.00			$	22.20			$	21.00

F-51