##### 









UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


WASHINGTON, D.C. 20549





FORM 10-Q


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|          
|           |  | FOR THE QUARTERLY PERIOD ENDED FEBRUARY 28, 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                                             

Commission File Number: 000-49713





ACCENTURE SCA


(Exact name of Registrant as specified in its charter)


|                                                                   |  |                                         
|------------------------------------------------------------------ |  | ----------------------------------------
|                                                                  
|                                                                  
|                                                                  
|                                                                  
|Luxembourg                                                         |  | 98-0351796                              
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. Employer
    Identification No.)

46A, Avenue J.F. Kennedy


L-1855 Luxembourg


(Address of principal executive offices)


(352) 26 42 35 00


(Registrants telephone number, including area code)


þ o


12b-2




|                           |                      |                         
|-------------------------- | -------------------- | ------------------------
|Large accelerated filer  o | Accelerated filer  o | Non-accelerated filer  þ

12b-2 o þ













---



##### 



ACCENTURE SCA


INDEX







|           |  |                                                                                                                                      |  |     
|---------- |  | ------------------------------------------------------------------------------------------------------------------------------------ |  | ----
|           |  |                                                                                                                                      |  | Page
|           |  |                                                                                                                                      |  |     
|          
|          
|          
|          
|Part I.    |  | Financial Information                                                                                                                |  | 3   
|          
|          
|          
|          
|Item 1.    |  | Financial Statements                                                                                                                 |  | 3   
|          
|          
|          
|          
|           |  | Consolidated Balance Sheets as of February
    28, 2006 (unaudited) and August 31, 2005                                              |  | 3   
|          
|          
|          
|          
|           |  | Consolidated Income Statements (unaudited)
    for the three and six months ended February 28, 2006 and 2005                         |  | 5   
|          
|          
|          
|          
|           |  | Consolidated Shareholders Equity and
    Comprehensive Income Statements (unaudited) for the six months
    ended February 28, 2006 |  | 6   
|          
|          
|          
|          
|           |  | Consolidated Cash Flows Statements
    (unaudited) for the six months ended February 28, 2006 and
    2005                           |  | 7   
|          
|          
|          
|          
|           |  | Notes to Consolidated Financial Statements
    (unaudited)                                                                           |  | 8   
|          
|          
|          
|          
|Item 2.    |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                                            |  | 22  
|          
|          
|          
|          
|Item 3.    |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                                       |  | 40  
|          
|          
|          
|          
|Item 4.    |  | Controls and Procedures                                                                                                              |  | 40  
|          
|          
|          
|          
|Part II.   |  | Other Information                                                                                                                    |  | 40  
|          
|          
|          
|          
|Item 1.    |  | Legal Proceedings                                                                                                                    |  | 40  
|          
|          
|          
|          
|Item 2.    |  | Unregistered Sales of Equity Securities and
    Use of Proceeds; Issuer Purchases of Equity Securities                               |  | 41  
|          
|          
|          
|          
|Item 3.    |  | Defaults upon Senior Securities                                                                                                      |  | 43  
|          
|          
|          
|          
|Item 4.    |  | Submission of Matters to a Vote of Security
    Holders                                                                              |  | 43  
|          
|          
|          
|          
|Item 5.    |  | Other Information                                                                                                                    |  | 43  
|          
|          
|          
|          
|Item 6.    |  | Exhibits                                                                                                                             |  | 43  
|Signatures |  |                                                                                                                                     



2



---



##### 






PART I  FINANCIAL INFORMATION





ITEM 1. FINANCIAL STATEMENTS


ACCENTURE SCA





CONSOLIDATED BALANCE SHEETS


February 28, 2006 and August 31, 2005


(In thousands of U.S. dollars, except share and per
share amounts)


|                                     |                                                                                                                                                                                                                   |                               |           |           |                 |   |           |           |           | 
|------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------- | --------- | --------- | --------------- | - | --------- | --------- | --------- | 
|                                     |                                                                                                                                                                                                                   | February 28, 2006             |           |           | August 31, 2005 |  
|                                     |                                                                                                                                                                                                                   |                               |           |           |                 |  
|                                     |                                                                                                                                                                                                                   | (Unaudited)                   |           |           |                
|                                    
|                                    
|                                    
|                                    
|ASSETS                              
|                                    
|                                    
|                                    
|                                    
|CURRENT ASSETS:                      |                                                                                                                                                                                                                   |                               |           |           |                 |   |           |          
|                                    
|                                    
|                                    
|                                    
|                                     | Cash and cash equivalents                                                                                                                                                                                         |                               | $         | 2,034,034 |                 |   | $         | 2,483,990 |          
|                                    
|                                    
|                                    
|                                    
|                                     | Short-term investments                                                                                                                                                                                            |                               |           | 312,760   |                 |   |           | 463,460   |          
|                                    
|                                    
|                                    
|                                    
|                                     | Receivables from clients, net of allowances of $47,314 and
    $40,821                                                                                                                                            |                               |           | 1,957,297 |                 |   |           | 1,752,937 |          
|                                    
|                                    
|                                    
|                                    
|                                     | Unbilled services, net of contract loss provision of $90,000 and
    $0                                                                                                                                           |                               |           | 1,240,684 |                 |   |           | 1,353,676 |          
|                                    
|                                    
|                                    
|                                    
|                                     | Deferred income taxes, net                                                                                                                                                                                        |                               |           | 101,591   |                 |   |           | 121,386   |          
|                                    
|                                    
|                                    
|                                    
|                                     | Other current assets                                                                                                                                                                                              |                               |           | 501,630   |                 |   |           | 509,818   |          
|                                     |                                                                                                                                                                                                                   |                               |           |           |                 |  
|                                     |                                                                                                                                                                                                                   | Total current assets          |           |           | 6,147,996       |   |           |           | 6,685,267 | 
|                                     |                                                                                                                                                                                                                   |                               |           |           |                 |  
|NON-CURRENT ASSETS:                  |                                                                                                                                                                                                                   |                               |           |           |                 |   |           |          
|                                    
|                                    
|                                    
|                                    
|                                     | Unbilled services, net of contract loss provision of $352,000
    and $0                                                                                                                                          |                               |           | 144,086   |                 |   |           | 472,430   |          
|                                    
|                                    
|                                    
|                                    
|                                     | Investments                                                                                                                                                                                                       |                               |           | 193,037   |                 |   |           | 262,873   |          
|                                    
|                                    
|                                    
|                                    
|                                     | Property and equipment, net of accumulated depreciation of
    $1,366,227 and $1,268,658                                                                                                                          |                               |           | 723,409   |                 |   |           | 693,710   |          
|                                    
|                                    
|                                    
|                                    
|                                     | Goodwill                                                                                                                                                                                                          |                               |           | 404,273   |                 |   |           | 378,488   |          
|                                    
|                                    
|                                    
|                                    
|                                     | Deferred income taxes, net                                                                                                                                                                                        |                               |           | 358,882   |                 |   |           | 291,033   |          
|                                    
|                                    
|                                    
|                                    
|                                     | Other non-current assets                                                                                                                                                                                          |                               |           | 152,969   |                 |   |           | 173,551   |          
|                                     |                                                                                                                                                                                                                   |                               |           |           |                 |  
|                                     |                                                                                                                                                                                                                   | Total non-current assets      |           |           | 1,976,656       |   |           |           | 2,272,085 | 
|                                     |                                                                                                                                                                                                                   |                               |           |           |                 |  
|TOTAL ASSETS                         |                                                                                                                                                                                                                   | $                             | 8,124,652 |           |                 | $ | 8,957,352 |          
|                                     |                                                                                                                                                                                                                   |                               |           |           |                 |  
|                                    
|                                    
|                                    
|                                    
|                                    
|LIABILITIES AND SHAREHOLDERS EQUITY
|                                    
|                                    
|                                    
|                                    
|CURRENT LIABILITIES:                 |                                                                                                                                                                                                                   |                               |           |           |                 |   |           |          
|                                    
|                                    
|                                    
|                                    
|                                     | Short-term bank borrowings                                                                                                                                                                                        |                               | $         | 5,500     |                 |   | $         | 13,681    |          
|                                    
|                                    
|                                    
|                                    
|                                     | Current portion of long-term debt                                                                                                                                                                                 |                               |           | 18,950    |                 |   |           | 17,391    |          
|                                    
|                                    
|                                    
|                                    
|                                     | Accounts payable                                                                                                                                                                                                  |                               |           | 757,937   |                 |   |           | 807,317   |          
|                                    
|                                    
|                                    
|                                    
|                                     | Deferred revenues                                                                                                                                                                                                 |                               |           | 1,535,290 |                 |   |           | 1,284,303 |          
|                                    
|                                    
|                                    
|                                    
|                                     | Accrued payroll and related benefits                                                                                                                                                                              |                               |           | 1,343,653 |                 |   |           | 1,430,998 |          
|                                    
|                                    
|                                    
|                                    
|                                     | Income taxes payable                                                                                                                                                                                              |                               |           | 787,889   |                 |   |           | 831,399   |          
|                                    
|                                    
|                                    
|                                    
|                                     | Deferred income taxes, net                                                                                                                                                                                        |                               |           | 78,331    |                 |   |           | 42,609    |          
|                                    
|                                    
|                                    
|                                    
|                                     | Other accrued liabilities                                                                                                                                                                                         |                               |           | 711,826   |                 |   |           | 503,435   |          
|                                     |                                                                                                                                                                                                                   |                               |           |           |                 |  
|                                     |                                                                                                                                                                                                                   | Total current liabilities     |           |           | 5,239,376       |   |           |           | 4,931,133 | 
|                                     |                                                                                                                                                                                                                   |                               |           |           |                 |  
|NON-CURRENT LIABILITIES:             |                                                                                                                                                                                                                   |                               |           |           |                 |   |           |          
|                                    
|                                    
|                                    
|                                    
|                                     | Long-term debt                                                                                                                                                                                                    |                               |           | 28,038    |                 |   |           | 44,116    |          
|                                    
|                                    
|                                    
|                                    
|                                     | Retirement obligation                                                                                                                                                                                             |                               |           | 762,366   |                 |   |           | 753,558   |          
|                                    
|                                    
|                                    
|                                    
|                                     | Deferred income taxes, net                                                                                                                                                                                        |                               |           | 6,578     |                 |   |           | 5,621     |          
|                                    
|                                    
|                                    
|                                    
|                                     | Other non-current liabilities                                                                                                                                                                                     |                               |           | 339,817   |                 |   |           | 545,051   |          
|                                     |                                                                                                                                                                                                                   |                               |           |           |                 |  
|                                     |                                                                                                                                                                                                                   | Total non-current liabilities |           |           | 1,136,799       |   |           |           | 1,348,346 | 
|                                     |                                                                                                                                                                                                                   |                               |           |           |                 |  
|COMMITMENTS AND CONTINGENCIES        |                                                                                                                                                                                                                   |                               |           |           |                 |   |           |          
|                                    
|                                    
|                                    
|                                    
|MINORITY INTEREST                    |                                                                                                                                                                                                                   |                               | 67,696    |           |                 |   | 62,070    |          
|                                    
|                                    
|                                    
|                                    
|SHAREHOLDERS EQUITY:                |                                                                                                                                                                                                                   |                               |           |           |                 |   |           |          
|                                    
|                                    
|                                    
|                                    
|                                     | Class I common shares, par value 1.25 euros per share,
    10,000,000,000 shares authorized, 263,632,932 and
    316,573,074 issued and outstanding as of February 28, 2006
    and August 31, 2005, respectively |                               |           | 295,459   |                 |   |           | 354,835   |          

3



---



##### 



|                                           |                                                                                                                                                                                                                                                               |                            |           |            |                 |   |           |            |           | 
|------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------- | --------- | ---------- | --------------- | - | --------- | ---------- | --------- | 
|                                           |                                                                                                                                                                                                                                                               | February 28, 2006          |           |            | August 31, 2005 |  
|                                           |                                                                                                                                                                                                                                                               |                            |           |            |                 |  
|                                           |                                                                                                                                                                                                                                                               | (Unaudited)                |           |            |                
|                                          
|                                          
|                                          
|                                          
|                                           | Class II common shares, par value 1.25 euros per share,
    20,000,000,000 shares authorized, 476,273,864 and
    470,958,308 shares issued as of February 28, 2006 and
    August 31, 2005, respectively                                                     |                            |           | 537,048    |                 |   |           | 529,281    |          
|                                          
|                                          
|                                          
|                                          
|                                           | Class III, including Class III-A through -N lettered
    sub-series common shares, par value 1.25 euros per share,
    10,000,000,000 shares authorized, 713,592,575 and
    654,720,380 issued as of February 28, 2006 and
    August 31, 2005, respectively |                            |           | 803,829    |                 |   |           | 735,786    |          
|                                          
|                                          
|                                          
|                                          
|                                           | Restricted share units (related to Accenture Ltd Class A
    common shares)                                                                                                                                                                                   |                            |           | 426,046    |                 |   |           | 365,708    |          
|                                          
|                                          
|                                          
|                                          
|                                           | Additional paid-in capital                                                                                                                                                                                                                                    |                            |           | 3,277,711  |                 |   |           | 3,017,187  |          
|                                          
|                                          
|                                          
|                                          
|                                           | Treasury shares, at cost: Class II common, 5,315,556 and
    zero shares at February 28, 2006 and August 31, 2005,
    respectively; Class III common, 173,972,086 and
    128,969,153 shares at February 28, 2006 and
    August 31, 2005, respectively      |                            |           | (4,181,744 | )               |   |           | (3,027,009 | )        
|                                          
|                                          
|                                          
|                                          
|                                           | Investment in Accenture Ltd shares, at cost, 11,400,213 and
    2,353,924 shares at February 28, 2006 and
    August 31, 2005, respectively                                                                                                                   |                            |           | (247,495   | )               |   |           | (58,314    | )        
|                                          
|                                          
|                                          
|                                          
|                                           | Retained earnings                                                                                                                                                                                                                                             |                            |           | 1,008,693  |                 |   |           | 930,813    |          
|                                          
|                                          
|                                          
|                                          
|                                           | Accumulated other comprehensive loss                                                                                                                                                                                                                          |                            |           | (238,766   | )               |   |           | (232,484   | )        
|                                           |                                                                                                                                                                                                                                                               |                            |           |            |                 |  
|                                           |                                                                                                                                                                                                                                                               | Total shareholders equity |           |            | 1,680,781       |   |           |            | 2,615,803 | 
|                                           |                                                                                                                                                                                                                                                               |                            |           |            |                 |  
|TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |                                                                                                                                                                                                                                                               | $                          | 8,124,652 |            |                 | $ | 8,957,352 |           
|                                           |                                                                                                                                                                                                                                                               |                            |           |            |                 |  



4



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##### 



ACCENTURE SCA





CONSOLIDATED INCOME STATEMENTS


For the Three and Six Months Ended February 28, 2006 and
2005


(In thousands of U.S. dollars, except share amounts)


(Unaudited)


|                                                    |                                  |                                               |                          |           |                  |           |         |           |           |           |         |           |           |           |         |           |           |           | 
|--------------------------------------------------- | -------------------------------- | --------------------------------------------- | ------------------------ | --------- | ---------------- | --------- | ------- | --------- | --------- | --------- | ------- | --------- | --------- | --------- | ------- | --------- | --------- | --------- | 
|                                                    |                                  | Three Months Ended                            |                          |           | Six Months Ended |          
|                                                    |                                  | February 28,                                  |                          |           | February 28,     |          
|                                                    |                                  |                                               |                          |           |                  |          
|                                                    |                                  | 2006                                          |                          |           | 2005             |           |         | 2006      |           |           | 2005    |          
|                                                    |                                  |                                               |                          |           |                  |           |         |           |           |           |         |          
|REVENUES:                                           |                                  |                                               |                          |           |                  |           |         |           |           |           |         |           |           |           |         |          
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Revenues before reimbursements   |                                               | $                        | 4,102,795 |                  |           | $       | 3,813,522 |           |           | $       | 8,272,270 |           |           | $       | 7,543,877 |          
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Reimbursements                   |                                               |                          | 388,317   |                  |           |         | 402,862   |           |           |         | 761,858   |           |           |         | 743,879   |          
|                                                    |                                  |                                               |                          |           |                  |           |         |           |           |           |         |          
|                                                    |                                  | Revenues                                      |                          |           | 4,491,112        |           |         |           | 4,216,384 |           |         |           | 9,034,128 |           |         |           | 8,287,756 |          
|                                                   
|                                                   
|                                                   
|                                                   
|OPERATING EXPENSES:                                 |                                  |                                               |                          |           |                  |           |         |           |           |           |         |           |           |           |         |          
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Cost of services:                |                                               |                          |           |                  |           |         |           |           |           |         |           |           |           |         |           |          
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    |                                  | Cost of services before reimbursable expenses |                          |           | 3,234,139        |           |         |           | 2,638,950 |           |         |           | 6,083,306 |           |         |           | 5,154,389 |          
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    |                                  | Reimbursable expenses                         |                          |           | 388,317          |           |         |           | 402,862   |           |         |           | 761,858   |           |         |           | 743,879   |          
|                                                    |                                  |                                               |                          |           |                  |           |         |           |           |           |         |          
|                                                    |                                  | Cost of services                              |                          |           | 3,622,456        |           |         |           | 3,041,812 |           |         |           | 6,845,164 |           |         |           | 5,898,268 |          
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Sales and marketing              |                                               |                          | 393,412   |                  |           |         | 376,919   |           |           |         | 802,014   |           |           |         | 735,862   |          
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | General and administrative costs |                                               |                          | 345,347   |                  |           |         | 361,478   |           |           |         | 739,113   |           |           |         | 752,293   |          
|                                                   
|                                                   
|                                                   
|                                                   
|                                                    | Reorganization benefits, net     |                                               |                          | (7,415    | )                |           |         | (35,777   | )         |           |         | (2,031    | )         |           |         | (28,769   | )        
|                                                    |                                  |                                               |                          |           |                  |           |         |           |           |           |         |          
|                                                    |                                  |                                               | Total operating expenses |           |                  | 4,353,800 |         |           |           | 3,744,432 |         |           |           | 8,384,260 |         |           |           | 7,357,654 | 
|                                                    |                                  |                                               |                          |           |                  |           |         |           |           |           |         |          
|OPERATING INCOME                                    |                                  |                                               | 137,312                  |           |                  |           | 471,952 |           |           |           | 649,868 |           |           |           | 930,102 |          
|                                                   
|                                                   
|                                                   
|                                                   
|Gain on investments, net                            |                                  |                                               | 1,792                    |           |                  |           | 93      |           |           |           | 3,230   |           |           |           | 14,633  |          
|                                                   
|                                                   
|                                                   
|                                                   
|Interest income                                     |                                  |                                               | 24,581                   |           |                  |           | 28,063  |           |           |           | 54,934  |           |           |           | 48,184  |          
|                                                   
|                                                   
|                                                   
|                                                   
|Interest expense                                    |                                  |                                               | (4,558                   | )         |                  |           | (6,300  | )         |           |           | (9,243  | )         |           |           | (12,616 | )        
|                                                   
|                                                   
|                                                   
|                                                   
|Other income (expense)                              |                                  |                                               | 2,805                    |           |                  |           | (2,846  | )         |           |           | (13,142 | )         |           |           | (5,173  | )        
|                                                    |                                  |                                               |                          |           |                  |           |         |           |           |           |         |          
|INCOME BEFORE INCOME TAXES                          |                                  |                                               | 161,932                  |           |                  |           | 490,962 |           |           |           | 685,647 |           |           |           | 975,130 |          
|                                                   
|                                                   
|                                                   
|                                                   
|Provision for income taxes                          |                                  |                                               | 57,820                   |           |                  |           | 150,350 |           |           |           | 253,689 |           |           |           | 314,967 |          
|                                                    |                                  |                                               |                          |           |                  |           |         |           |           |           |         |          
|INCOME BEFORE MINORITY INTEREST                     |                                  |                                               | 104,112                  |           |                  |           | 340,612 |           |           |           | 431,958 |           |           |           | 660,163 |          
|                                                   
|                                                   
|                                                   
|                                                   
|Minority interest in Accenture Canada Holdings Inc. |                                  |                                               | (504                     | )         |                  |           | (1,770  | )         |           |           | (2,097  | )         |           |           | (3,431  | )        
|                                                   
|                                                   
|                                                   
|                                                   
|Minority interest  other                           |                                  |                                               | (1,778                   | )         |                  |           | (2,138  | )         |           |           | (4,548  | )         |           |           | (3,735  | )        
|                                                    |                                  |                                               |                          |           |                  |           |         |           |           |           |         |          
|NET INCOME                                          |                                  | $                                             | 101,830                  |           |                  | $         | 336,704 |           |           | $         | 425,313 |           |           | $         | 652,997 |          
|                                                    |                                  |                                               |                          |           |                  |           |         |           |           |           |         |          



5



---



##### 





ACCENTURE SCA





CONSOLIDATED SHAREHOLDERS EQUITY AND COMPREHENSIVE
INCOME STATEMENTS


For the Six Months Ended February 28, 2006


(In thousands of U.S. dollars and in thousands of share
amounts)


(Unaudited)


|                                                                                                                          |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   |          |       |  |  |         |   |  |   |           |         |  |   |          |        |        |   |            |         |        |  
|------------------------------------------------------------------------------------------------------------------------- | ------------------------- | ----------------------------------------------------------------------------------- | ------- | --- | --------------- |  | ------- | ---------------- | --- | - | ----------------- |  |  | --- | ------- | --------------- | -------------- | - | ------------- | ------- |  |  | ------- | ----------- | --- | - | ------- | - | ------ | --- | --------- | - | -------- | - | ---------- | ------------- |  | -------- | -------- | - | ---- | - | -------- | ----- |  |  | ------- | - |  | - | --------- | ------- |  | - | -------- | ------ | ------ | - | ---------- | ------- | ------ | -
|                                                                                                                          |                           | Class I Common                                                                      |         |     | Class II Common |  |         | Class III Common |     |   |                   |  |  |     |         |                 | Investment in  |   |               |         |  |  |         |            
|                                                                                                                          |                           | Shares                                                                              |         |     | Shares          |  |         | Shares           |     |   | Restricted Share  |  |  |     |         | Treasury Shares |                |   | Accenture Ltd |         |  |  |         |             |     |  
|                                                                                                                          |                           |                                                                                     |         |     |                 |  |         |                  |     |   | Units (Related to |  |  |     |         |                 |                |   |               |         |  |  |         | Accumulated |     |   |        
|                                                                                                                          |                           |                                                                                     |         |     |                 |  |         | Accenture Ltd    |     |   | Additional        |  |  |     |         |                 |                |   |               | Other   |  |  |        
|                                                                                                                          |                           |                                                                                     |         | No. |                 |  |         |                  | No. |   |                   |  |  | No. |         |                 | Class A Common |   |               | Paid-In |  |  |         |             | No. |   |         |   |        | No. |           |   | Retained |   |            | Comprehensive |  |          |         
|                                                                                                                          |                           | $                                                                                   |         |     | Shares          |  |         | $                |     |   | Shares            |  |  | $   |         |                 | Shares         |   |               | Shares) |  |  | Capital |             |     | $ |         |   | Shares |     |           | $ |          |   | Shares     |               |  | Earnings |          |   | Loss |   |          | Total | 
|                                                                                                                          |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   |          |       | 
|Balance at August 31, 2005                                                                                                |                           | $                                                                                   | 354,835 |     |                 |  | 316,573 |                  |     | $ | 529,281           |  |  |     | 470,958 |                 |                | $ | 735,786       |         |  |  | 654,721 |             |     | $ | 365,708 |   |        | $   | 3,017,187 |   |          | $ | (3,027,009 | )             |  |          | (128,969 | ) |      | $ | (58,314  | )     |  |  | (2,353  | ) |  | $ | 930,813   |         |  | $ | (232,484 | )      |        | $ | 2,615,803  |        
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|Comprehensive income:                                                                                                     |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   |          |       |  |  |         |   |  |   |           |         |  |   |          |        |        |   |            |        
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                          | Net income                |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   |          |       |  |  |         |   |  |   |           | 425,313 |  |   |          |        |        |   |            | 425,313 |       
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                          | Other comprehensive loss: |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   |          |       |  |  |         |   |  |   |           |         |  |   |          |        |        |   |            |         |       
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                          |                           | Unrealized losses on marketable securities, net of
    reclassification adjustments |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   |          |       |  |  |         |   |  |   |           |         |  |   |          |        | (1,692 | ) |            |         | (1,692 | )
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                          |                           | Foreign currency translation adjustments                                            |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   |          |       |  |  |         |   |  |   |           |         |  |   |          |        | (4,791 | ) |            |         | (4,791 | )
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                          |                           | Minimum pension liability adjustment, net of tax                                    |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   |          |       |  |  |         |   |  |   |           |         |  |   |          |        | 201    |   |            |         | 201    |  
|                                                                                                                          |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   |          |       | 
|                                                                                                                          | Other comprehensive loss  |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   |          |       |  |  |         |   |  |   |           |         |  |   |          | (6,282 | )      |   |            |         |       
|                                                                                                                          |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   |          |       | 
|Comprehensive income                                                                                                      |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   |          |       |  |  |         |   |  |   |           |         |  |   |          |        |        |   | 419,031    |        
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|Income tax benefit on share-based compensation plans                                                                      |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     | 55,078    |   |          |   |            |               |  |          |          |   |      |   |          |       |  |  |         |   |  |   |           |         |  |   |          |        |        |   | 55,078     |        
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|Issuance and purchase of Class II and III common shares                                                                   |                           |                                                                                     |         |     |                 |  |         |                  |     |   | 7,767             |  |  |     | 5,316   |                 |                |   | 8,667         |         |  |  | 5,932   |             |     |   |         |   |        |     | 155,369   |   |          |   | (171,803   | )             |  |          | (11,248  | ) |      |   |          |       |  |  |         |   |  |   | (171,696  | )       |  |   |          |        |        |   | (171,696   | )      
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|Purchases of Accenture Ltd Class A common shares                                                                          |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     | (7,290    | ) |          |   |            |               |  |          |          |   |      |   | (246,274 | )     |  |  | (11,334 | ) |  |   |           |         |  |   |          |        |        |   | (253,564   | )      
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|Transfer of shares from investment in Accenture Ltd.                                                                      |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   | 57,093   |       |  |  | 2,287   |   |  |   |           |         |  |   |          |        |        |   | 57,093     |        
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|Share-based compensation expense                                                                                          |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   | 66,089  |   |        |     | 57,988    |   |          |   |            |               |  |          |          |   |      |   |          |       |  |  |         |   |  |   |           |         |  |   |          |        |        |   | 124,077    |        
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|Purchases/redemptions of Accenture SCA Class I common shares                                                              |                           |                                                                                     | (59,376 | )   |                 |  | (52,940 | )                |     |   |                   |  |  |     |         |                 |                |   | 59,376        |         |  |  | 52,940  |             |     |   |         |   |        |     |           |   |          |   | (1,276,388 | )             |  |          | (52,940  | ) |      |   |          |       |  |  |         |   |  |   |           |         |  |   |          |        |        |   | (1,276,388 | )      
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|Purchases/redemptions of Accenture SCA Class III common
    shares and Accenture Canada Holdings Inc. exchangeable shares |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     | (5,635    | ) |          |   | (58,379    | )             |  |          | (2,286   | ) |      |   |          |       |  |  |         |   |  |   |           |         |  |   |          |        |        |   | (64,014    | )      
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|Issuances of Class A common shares related to employee
    share programs                                                 |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   | (19,527 | ) |        |     | (1,569    | ) |          |   | 351,835    |               |  |          | 16,155   |   |      |   |          |       |  |  |         |   |  |   | (65,684   | )       |  |   |          |        |        |   | 265,055    |        
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|Dividends                                                                                                                 |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   | 13,776  |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   |          |       |  |  |         |   |  |   | (110,053  | )       |  |   |          |        |        |   | (96,277    | )      
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|Minority interest                                                                                                         |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     | 6,583     |   |          |   |            |               |  |          |          |   |      |   |          |       |  |  |         |   |  |   |           |         |  |   |          |        |        |   | 6,583      |        
|                                                                                                                          |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   |          |       | 
|Balance at February 28, 2006                                                                                              |                           | $                                                                                   | 295,459 |     |                 |  | 263,633 |                  |     | $ | 537,048           |  |  |     | 476,274 |                 |                | $ | 803,829       |         |  |  | 713,593 |             |     | $ | 426,046 |   |        | $   | 3,277,711 |   |          | $ | (4,181,744 | )             |  |          | (179,288 | ) |      | $ | (247,495 | )     |  |  | (11,400 | ) |  | $ | 1,008,693 |         |  | $ | (238,766 | )      |        | $ | 1,680,781  |        
|                                                                                                                          |                           |                                                                                     |         |     |                 |  |         |                  |     |   |                   |  |  |     |         |                 |                |   |               |         |  |  |         |             |     |   |         |   |        |     |           |   |          |   |            |               |  |          |          |   |      |   |          |       | 



6



---



##### 



ACCENTURE SCA





CONSOLIDATED CASH FLOWS STATEMENTS


For the Six Months Ended February 28, 2006 and 2005


(In thousands of U.S. dollars)


(Unaudited)


|                                                     |                                                                                                                                                                       |                                                                |                                            |                                                     |         |          |            |          |         |          |          |  
|---------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------- | ------------------------------------------ | --------------------------------------------------- | ------- | -------- | ---------- | -------- | ------- | -------- | -------- | -
|                                                     |                                                                                                                                                                       | 2006                                                           |                                            |                                                     | 2005    |         
|                                                     |                                                                                                                                                                       |                                                                |                                            |                                                     |         |         
|CASH FLOWS FROM OPERATING ACTIVITIES:                |                                                                                                                                                                       |                                                                |                                            |                                                     |         |          |            |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Net income                                                                                                                                                            |                                                                | $                                          | 425,313                                             |         |          | $          | 652,997  |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Adjustments to reconcile net income to net cash provided by
    operating activities  Depreciation and amortization
    (including amortization of deferred charges) |                                                                |                                            | 153,918                                             |         |          |            | 121,906  |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       | Reorganization benefits, net                                   |                                            |                                                     | (2,031  | )        |            |          | (28,769 | )       
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       | Gains on investments, net                                      |                                            |                                                     | (3,230  | )        |            |          | (14,633 | )       
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       | (Gains) losses on disposal of property and equipment, net      |                                            |                                                     | (62     | )        |            |          | 3,415   |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       | Share-based compensation expense                               |                                            |                                                     | 127,398 |          |            |          | 37,872  |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       | Deferred income taxes, net                                     |                                            |                                                     | (14,993 | )        |            |          | (16,682 | )       
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       | Minority interest                                              |                                            |                                                     | 6,645   |          |            |          | 7,166   |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       | Other items, net                                               |                                            |                                                     | 7,854   |          |            |          | (2,654  | )       
|                                                     |                                                                                                                                                                       | Change in assets and liabilities, net of
    acquisitions(1)  |                                            |                                                     |         |          |            |          |         |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       |                                                                | Receivables from clients, net              |                                                     |         | (227,982 | )          |          |         | (115,116 | )       
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       |                                                                | Other current assets                       |                                                     |         | 11,250   |            |          |         | (2,540   | )       
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       |                                                                | Unbilled services, current and non-current |                                                     |         | 404,854  |            |          |         | (415,141 | )       
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       |                                                                | Other non-current assets                   |                                                     |         | (11,304  | )          |          |         | 741      |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       |                                                                | Accounts payable                           |                                                     |         | (27,804  | )          |          |         | 231,846  |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       |                                                                | Deferred revenues                          |                                                     |         | 273,449  |            |          |         | 281,637  |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       |                                                                | Accrued payroll and related benefits       |                                                     |         | (70,314  | )          |          |         | (151,331 | )       
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       |                                                                | Income taxes payable                       |                                                     |         | (12,823  | )          |          |         | 49,840   |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       |                                                                | Other accrued liabilities                  |                                                     |         | (6,598   | )          |          |         | (2,513   | )       
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                                                                                       |                                                                | Other non-current liabilities              |                                                     |         | 18,515   |            |          |         | 87,966   |         
|                                                     |                                                                                                                                                                       |                                                                |                                            |                                                     |         |         
|                                                     |                                                                                                                                                                       |                                                                |                                            | Net cash provided by operating activities           |         |          | 1,052,055  |          |         |          | 726,007  |  
|                                                     |                                                                                                                                                                       |                                                                |                                            |                                                     |         |         
|CASH FLOWS FROM INVESTING ACTIVITIES:                |                                                                                                                                                                       |                                                                |                                            |                                                     |         |          |            |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Proceeds from maturities and sales of available-for-sale
    investments                                                                                              |                                                                |                                            | 394,470                                             |         |          |            | 606,022  |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Purchases of available-for-sale investments                                                                                                                           |                                                                |                                            | (171,192                                            | )       |          |            | (691,646 | )      
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Proceeds from sales of property and equipment                                                                                                                         |                                                                |                                            | 10,751                                              |         |          |            | 2,325    |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Purchases of property and equipment                                                                                                                                   |                                                                |                                            | (149,833                                            | )       |          |            | (116,213 | )      
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Purchases of businesses and investments, net of cash acquired                                                                                                         |                                                                |                                            | (37,442                                             | )       |          |            |         |        
|                                                     |                                                                                                                                                                       |                                                                |                                            |                                                     |         |         
|                                                     |                                                                                                                                                                       |                                                                |                                            | Net cash provided by (used in) investing activities |         |          | 46,754     |          |         |          | (199,512 | )
|                                                     |                                                                                                                                                                       |                                                                |                                            |                                                     |         |         
|CASH FLOWS FROM FINANCING ACTIVITIES:                |                                                                                                                                                                       |                                                                |                                            |                                                     |         |          |            |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Payment of retirement benefits to former pre-incorporation
    partners                                                                                               |                                                                |                                            | (8,661                                              | )       |          |            | (6,258   | )      
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Proceeds from issuance of common shares                                                                                                                               |                                                                |                                            | 265,055                                             |         |          |            | 135,532  |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Purchases of common shares                                                                                                                                            |                                                                |                                            | (1,708,569                                          | )       |          |            | (260,407 | )      
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Proceeds from long-term debt                                                                                                                                          |                                                                |                                            | 8,654                                               |         |          |            | 1,859    |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Repayments of long-term debt                                                                                                                                          |                                                                |                                            | (22,405                                             | )       |          |            | (6,520   | )      
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Proceeds from short-term borrowings                                                                                                                                   |                                                                |                                            | 43,030                                              |         |          |            | 36,639   |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Repayments of short-term borrowings                                                                                                                                   |                                                                |                                            | (26,821                                             | )       |          |            | (25,444  | )      
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Cash dividends paid                                                                                                                                                   |                                                                |                                            | (96,277                                             | )       |          |            |         |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Excess tax benefits from share-based payment arrangements                                                                                                             |                                                                |                                            | 28,540                                              |         |          |            |         |        
|                                                     |                                                                                                                                                                       |                                                                |                                            |                                                     |         |         
|                                                     |                                                                                                                                                                       |                                                                |                                            | Net cash used in financing activities               |         |          | (1,517,454 | )        |         |          | (124,599 | )
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Effect of exchange rate changes on cash and cash equivalents                                                                                                          |                                                                |                                            | (31,311                                             | )       |          |            | 105,349  |        
|                                                     |                                                                                                                                                                       |                                                                |                                            |                                                     |         |         
|NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |                                                                                                                                                                       |                                                                | (449,956                                   | )                                                   |         |          | 507,245    |         
|                                                    
|                                                    
|                                                    
|                                                    
|CASH AND CASH EQUIVALENTS,beginning of period        |                                                                                                                                                                       |                                                                | 2,483,990                                  |                                                     |         |          | 2,552,958  |         
|                                                     |                                                                                                                                                                       |                                                                |                                            |                                                     |         |         
|CASH AND CASH EQUIVALENTS,end of period              |                                                                                                                                                                       | $                                                              | 2,034,034                                  |                                                     |         | $        | 3,060,203  |         
|                                                     |                                                                                                                                                                       |                                                                |                                            |                                                     |         |         






|    |                                                                                                                                                                                                                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The change in the assets and liabilities, net of acquisitions,
    includes the impact of the $450,000 loss provision recorded by
    the Company during the six months ended February 28, 2006.
    See Footnote 8 (Commitments and Contingencies) to these
    Consolidated Financial Statements.



7



---



##### 



ACCENTURE SCA





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(In thousands of U.S. Dollars, except share and per
share amounts or as otherwise disclosed)


(Unaudited)




|   |                                           
|-- | ------------------------------------------
|1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation


10-Q 10-K




Revenue Recognition


percentage-of Accounting for
Performance of Construction-Type and Certain Production-Type
Contracts Percentage-of percentage-of


Revenue Recognition in
Financial Statements


8



---



##### 



ACCENTURE SCA


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(In thousands of U.S. Dollars, except share and per
share amounts or as otherwise disclosed)


(Unaudited)


Revenue Recognition




set-up set-up set-up


00-21, Accounting for Revenue Arrangements with Multiple
Deliverables 00-21). 00-21. 00-21, 00-21 00-21






9



---



##### 



ACCENTURE SCA


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(In thousands of U.S. Dollars, except share and per
share amounts or as otherwise disclosed)


(Unaudited)






out-of


Other Significant Accounting Policies


10-K




|   |                         
|-- | ------------------------
|2. | SHARE-BASED COMPENSATION

Share-Based Payment Accounting for Stock-Based
Compensation Accounting for Stock Issued to Employees




10



---



##### 



ACCENTURE SCA


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(In thousands of U.S. Dollars, except share and per
share amounts or as otherwise disclosed)


(Unaudited)




|                                     |  |                         |          |       |                          |   |          |             |       |   |            |   |  |   |            |  
|------------------------------------ |  | ----------------------- | -------- | ----- | ------------------------ | - | -------- | ----------- | ----- | - | ---------- | - |  | - | ---------- | -
|                                     |  | For the Three Months    |          |       | For the Six Months Ended |  
|                                     |  | Ended February 28, 2006 |          |       | February 28, 2006        |  
|                                     |  |                         |          |       |                          |  
|                                     |  |                         |          | Under |                          |   |          |             | Under |  
|                                     |  | As Reported             |          |       | APB No. 25               |   |          | As Reported |       |   | APB No. 25 |  
|                                     |  |                         |          |       |                          |   |          |             |       |   |            |  
|Income before income taxes           |  | $                       | 161,932  |       |                          | $ | 190,751  |             |       | $ | 685,647    |   |  | $ | 728,692    |  
|                                    
|                                    
|                                    
|                                    
|Income before minority interest      |  |                         | 104,112  |       |                          |   | 123,017  |             |       |   | 431,958    |   |  |   | 460,195    |  
|                                    
|                                    
|                                    
|                                    
|Net income                           |  |                         | 101,830  |       |                          |   | 120,642  |             |       |   | 425,313    |   |  |   | 453,412    |  
|                                    
|                                    
|                                    
|                                    
|Cash flows from operating activities |  |                         | 683,674  |       |                          |   | 694,120  |             |       |   | 1,052,055  |   |  |   | 1,080,595  |  
|                                    
|                                    
|                                    
|                                    
|Cash flows from financing activities |  |                         | (239,314 | )     |                          |   | (249,760 | )           |       |   | (1,517,454 | ) |  |   | (1,545,994 | )



|                       |                                                                                                                                                                          |                            |         |         |                          |   |         |         |  
|---------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------- | ------- | ------- | ------------------------ | - | ------- | ------- | -
|                       |                                                                                                                                                                          | For the Three Months Ended |         |         | For the Six Months Ended |  
|                       |                                                                                                                                                                          | February 28, 2005          |         |         | February 28, 2005        |  
|                       |                                                                                                                                                                          |                            |         |         |                          |  
|Net income as reported |                                                                                                                                                                          | $                          | 336,704 |         |                          | $ | 652,997 |        
|                      
|                      
|                      
|                      
|                       | Add: Share-based compensation expense already included in Net
    income as reported, net of tax and minority interest                                                   |                            |         | 17,859  |                          |   |         | 34,594  |  
|                      
|                      
|                      
|                      
|                       | Deduct: Pro forma employee compensation cost related to stock
    options, restricted share units and employee share purchase
    plan, net of tax and minority interest |                            |         | (53,230 | )                        |   |         | (91,922 | )
|                       |                                                                                                                                                                          |                            |         |         |                          |  
|                       | Subtotal                                                                                                                                                                 |                            |         | (35,371 | )                        |   |         | (57,328 | )
|                       |                                                                                                                                                                          |                            |         |         |                          |  
|Pro forma net income   |                                                                                                                                                                          | $                          | 301,333 |         |                          | $ | 595,669 |        
|                       |                                                                                                                                                                          |                            |         |         |                          |  

Share Incentive Plan






11



---



##### 



ACCENTURE SCA


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(In thousands of U.S. Dollars, except share and per
share amounts or as otherwise disclosed)


(Unaudited)




|                                                                                  |  |               |        |  |              |   |        |      |  |   |         |  |  |   |        | 
|--------------------------------------------------------------------------------- |  | ------------- | ------ |  | ------------ | - | ------ | ---- |  | - | ------- |  |  | - | ------ | 
|                                                                                  |  | For the Three |        |  | For the Six  |  
|                                                                                  |  | Months Ended  |        |  | Months Ended |  
|                                                                                  |  | February 28,  |        |  | February 28, |  
|                                                                                  |  |               |        |  |              |  
|                                                                                  |  | 2006          |        |  | 2005         |   |        | 2006 |  |   | 2005    | 
|                                                                                  |  |               |        |  |              |   |        |      |  |   |         | 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Total share-based compensation expense included in Net income                     |  | $             | 76,566 |  |              | $ | 19,800 |      |  | $ | 127,398 |  |  | $ | 37,872 | 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Income tax benefit related to share-based compensation included
    in Net income |  | $             | 26,147 |  |              | $ | 1,841  |      |  | $ | 43,706  |  |  | $ | 3,566  | 



| |              
| | -------------
| | Stock Options



|                                            |                      |           |            |             |                  |                  |           |                  |  |  |                 |  |  |   |         |  | 
|------------------------------------------- | -------------------- | --------- | ---------- | ----------- | ---------------- | ---------------- | --------- | ---------------- |  |  | --------------- |  |  | - | ------- |  | 
|                                            |                      |           |            |             |                  | Weighted Average |           |                  | 
|                                            |                      |           |            | Weighted    |                  |                  | Remaining |                  |  | 
|                                            |                      | Number of |            |             | Average Exercise |                  |           | Contractual Term |  |  | Aggregate       | 
|                                            |                      | Options   |            |             | Price            |                  |           | (in years)       |  |  | Intrinsic Value | 
|                                            |                      |           |            |             |                  |                  |           |                  |  |  |                 | 
|Options outstanding as of August 31, 2005   |                      |           | 73,848,900 |             |                  | $                | 18.27     |                  |  |  |                 |  |  |   |         | 
|                                           
|                                           
|                                           
|                                           
|                                            | Granted              |           |            | 424,685     |                  |                  | $         | 26.19            |  |  |                 |  |  |   |         |  | 
|                                           
|                                           
|                                           
|                                           
|                                            | Exercised            |           |            | (11,505,998 | )                |                  | $         | 15.87            |  |  |                 |  |  |   |         |  | 
|                                           
|                                           
|                                           
|                                           
|                                            | Expired or cancelled |           |            | (321,108    | )                |                  | $         | 19.53            |  |  |                 |  |  |   |         |  | 
|                                           
|                                           
|                                           
|                                           
|                                            | Forfeited            |           |            | (730,887    | )                |                  | $         | 22.83            |  |  |                 |  |  |   |         |  | 
|                                            |                      |           |            |             |                  |                  |           |                  |  |  |                 | 
|Options outstanding as of February 28, 2006 |                      |           | 61,715,592 |             |                  | $                | 18.71     |                  |  |  | 6.8             |  |  | $ | 858,523 | 
|                                            |                      |           |            |             |                  |                  |           |                  |  |  |                 | 
|Options exercisable as of February 28, 2006 |                      |           | 40,793,726 |             |                  | $                | 16.53     |                  |  |  | 6.0             |  |  | $ | 656,574 | 
|                                            |                      |           |            |             |                  |                  |           |                  |  |  |                 | 



|                                                                |  |               |        |  |              |   |        |      |  |   |         |  |  |   |        | 
|--------------------------------------------------------------- |  | ------------- | ------ |  | ------------ | - | ------ | ---- |  | - | ------- |  |  | - | ------ | 
|                                                                |  | For the Three |        |  | For the Six  |  
|                                                                |  | Months Ended  |        |  | Months Ended |  
|                                                                |  | February 28,  |        |  | February 28, |  
|                                                                |  |               |        |  |              |  
|                                                                |  | 2006          |        |  | 2005         |   |        | 2006 |  |   | 2005    | 
|                                                                |  |               |        |  |              |   |        |      |  |   |         | 
|Weighted average grant-date fair value of stock options granted |  | $             | 12.50  |  |              | $ | 11.35  |      |  | $ | 11.10   |  |  | $ | 11.31  | 
|                                                               
|                                                               
|                                                               
|                                                               
|Total fair value of stock options vested(1)                     |  | $             | 1,345  |  |              | $ | 8,274  |      |  | $ | 31,470  |  |  | $ | 26,577 | 
|                                                               
|                                                               
|                                                               
|                                                               
|Total intrinsic value of stock options exercised                |  | $             | 97,723 |  |              | $ | 20,774 |      |  | $ | 150,446 |  |  | $ | 44,101 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In the Companys Quarterly Report on
    Form 10-Q for the
    three months ended November 30, 2005, the total fair value
    of stock options vested during the three months ended
    November 30, 2005 and 2004 was reported as $378,122 and
    $269,380, respectively. These amounts represented the total fair
    value of all stock options vested as of November 30, 2005
    and 2004. The total fair value of stock options vested during
    the three months ended November 30, 2005 and 2004 was
    $30,125 and $18,303, respectively.



12



---



##### 



ACCENTURE SCA


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(In thousands of U.S. Dollars, except share and per
share amounts or as otherwise disclosed)


(Unaudited)




|                         |  |                          |      |   |            |  |      |           |  |  |      |  
|------------------------ |  | ------------------------ | ---- | - | ---------- |  | ---- | --------- |  |  | ---- | -
|                         |  | For the Six Months Ended |     
|                         |  | February 28,             |     
|                         |  |                          |     
|                         |  | 2006(1)                  |      |   | 2005       | 
|                         |  |                          |      |   |            | 
|                         |  | Senior                   |      |   | Senior     |  |      | Other     | 
|                         |  | Executives               |      |   | Executives |  |      | Employees | 
|                         |  |                          |      |   |            |  |      |           | 
|Expected life (in years) |  |                          | 7.4  |   |            |  | 6.0  |           |  |  | 5.0  |  
|                        
|                        
|                        
|                        
|Risk-free interest rate  |  |                          | 4.13 | % |            |  | 4.02 | %         |  |  | 3.52 | %
|                        
|                        
|                        
|                        
|Expected volatility      |  |                          | 37   | % |            |  | 41   | %         |  |  | 41   | %
|                        
|                        
|                        
|                        
|Expected dividend yield  |  |                          | 1    | % |            |  | 0    | %         |  |  | 0    | %






|    |                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------
|(1) | No stock options were granted to Other Employees
    during the six months ended February 28, 2006.





| |                       
| | ----------------------
| | Restricted Share Units



|                                          |  |             |            |   |                  |   |       | 
|----------------------------------------- |  | ----------- | ---------- | - | ---------------- | - | ----- | 
|                                          |  | Number of   |            |   | Weighted Average |  
|                                          |  | Restricted  |            |   | Grant-Date       |  
|                                          |  | Share Units |            |   | Fair Value       |  
|                                          |  |             |            |   |                  |  
|Nonvested balance as of August 31, 2005   |  |             | 18,122,113 |   |                  | $ | 26.65 | 
|                                         
|                                         
|                                         
|                                         
|Granted                                   |  |             | 18,427,143 |   |                  |   | 25.59 | 
|                                         
|                                         
|                                         
|                                         
|Vested                                    |  |             | (1,137,252 | ) |                  |   | 23.60 | 
|                                         
|                                         
|                                         
|                                         
|Forfeited                                 |  |             | (607,470   | ) |                  |   | 23.22 | 
|                                          |  |             |            |   |                  |  
|Nonvested balance as of February 28, 2006 |  |             | 34,804,534 |   |                  | $ | 23.62 | 
|                                          |  |             |            |   |                  |  



Employee Share Purchase Plan




13



---



##### 



ACCENTURE SCA


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(In thousands of U.S. Dollars, except share and per
share amounts or as otherwise disclosed)


(Unaudited)






|   |                                                  
|-- | -------------------------------------------------
|3. | RESTRUCTURING AND REORGANIZATION (BENEFITS) COSTS

Restructuring






|                                                     |  |                    |        |   |                  |   |         |      |  |   |         |   |  |   |         |  
|---------------------------------------------------- |  | ------------------ | ------ | - | ---------------- | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|                                                     |  | Three Months Ended |        |   | Six Months Ended |  
|                                                     |  | February 28,       |        |   | February 28,     |  
|                                                     |  |                    |        |   |                  |  
|                                                     |  | 2006               |        |   | 2005             |   |         | 2006 |  |   | 2005    |  
|                                                     |  |                    |        |   |                  |   |         |      |  |   |         |  
|Restructuring liability balance, beginning of period |  | $                  | 64,353 |   |                  | $ | 100,069 |      |  | $ | 69,919  |   |  | $ | 102,761 |  
|                                                    
|                                                    
|                                                    
|                                                    
|Payments made                                        |  |                    | (5,223 | ) |                  |   | (12,167 | )    |  |   | (11,235 | ) |  |   | (18,049 | )
|                                                    
|                                                    
|                                                    
|                                                    
|Other(1)                                             |  |                    | 2,616  |   |                  |   | (829    | )    |  |   | 3,062   |   |  |   | 2,361   |  
|                                                     |  |                    |        |   |                  |   |         |      |  |   |         |  
|Restructuring liability, end of period               |  | $                  | 61,746 |   |                  | $ | 87,073  |      |  | $ | 61,746  |   |  | $ | 87,073  |  
|                                                     |  |                    |        |   |                  |   |         |      |  |   |         |  






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



Reorganization




14



---



##### 



ACCENTURE SCA


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(In thousands of U.S. Dollars, except share and per
share amounts or as otherwise disclosed)


(Unaudited)




|                                                      |                          |                    |         |         |                  |   |         |         |         |   |         |         |         |   |         |         |         |  
|----------------------------------------------------- | ------------------------ | ------------------ | ------- | ------- | ---------------- | - | ------- | ------- | ------- | - | ------- | ------- | ------- | - | ------- | ------- | ------- | -
|                                                      |                          | Three Months Ended |         |         | Six Months Ended |  
|                                                      |                          | February 28,       |         |         | February 28,     |  
|                                                      |                          |                    |         |         |                  |  
|                                                      |                          | 2006               |         |         | 2005             |   |         | 2006    |         |   | 2005    |        
|                                                      |                          |                    |         |         |                  |   |         |         |         |   |         |        
|Reorganization liability balance, beginning of period |                          | $                  | 378,118 |         |                  | $ | 502,478 |         |         | $ | 381,440 |         |         | $ | 454,042 |        
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Final determinations(1)  |                    |         | (13,540 | )                |   |         | (42,239 | )       |   |         | (14,638 | )       |   |         | (42,239 | )      
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Changes in estimates     |                    |         |        |                  |   |         |        |         |   |         |        |         |   |         |        |        
|                                                      |                          |                    |         |         |                  |   |         |         |         |   |         |        
|                                                      |                          | Benefit recorded   |         |         | (13,540          | ) |         |         | (42,239 | ) |         |         | (14,638 | ) |         |         | (42,239 | )
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Interest expense accrued |                    |         | 6,125   |                  |   |         | 6,462   |         |   |         | 12,607  |         |   |         | 13,470  |        
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Payments                 |                    |         |        |                  |   |         |        |         |   |         |        |         |   |         |        |        
|                                                      |                          |                    |         |         |                  |   |         |         |         |   |         |        
|Benefits, net of accrued interest and payments        |                          |                    | (7,415  | )       |                  |   | (35,777 | )       |         |   | (2,031  | )       |         |   | (28,769 | )      
|                                                     
|                                                     
|                                                     
|                                                     
|Foreign currency translation                          |                          |                    | 3,821   |         |                  |   | 1,126   |         |         |   | (4,885  | )       |         |   | 42,554  |        
|                                                      |                          |                    |         |         |                  |   |         |         |         |   |         |        
|Reorganization liability, end of period               |                          | $                  | 374,524 |         |                  | $ | 467,827 |         |         | $ | 374,524 |         |         | $ | 467,827 |        
|                                                      |                          |                    |         |         |                  |   |         |         |         |   |         |        




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





|   |                                     
|-- | ------------------------------------
|4. | ACCUMULATED OTHER COMPREHENSIVE LOSS



|                                                                                    |  |              |          |   |            |   |          |  
|----------------------------------------------------------------------------------- |  | ------------ | -------- | - | ---------- | - | -------- | -
|                                                                                    |  | February 28, |          |   | August 31, |  
|                                                                                    |  | 2006         |          |   | 2005       |  
|                                                                                    |  |              |          |   |            |  
|Foreign currency translation adjustments                                            |  | $            | (47,827  | ) |            | $ | (43,036  | )
|                                                                                   
|                                                                                   
|                                                                                   
|                                                                                   
|Unrealized losses on marketable securities, net of
    reclassification adjustments |  |              | (3,911   | ) |            |   | (2,219   | )
|                                                                                   
|                                                                                   
|                                                                                   
|                                                                                   
|Minimum pension liability adjustments, net of tax                                   |  |              | (187,028 | ) |            |   | (187,229 | )
|                                                                                    |  |              |          |   |            |  
|Accumulated other comprehensive loss                                                |  | $            | (238,766 | ) |            | $ | (232,484 | )
|                                                                                    |  |              |          |   |            |  



|                   |  |              |         |  |      |   |         | 
|------------------ |  | ------------ | ------- |  | ---- | - | ------- | 
|                   |  | February 28, |        
|                   |  |              |        
|                   |  | 2006         |         |  | 2005 |  
|                   |  |              |         |  |      |  
|                  
|                  
|                  
|                  
|Three months ended |  | $            | 119,144 |  |      | $ | 357,009 | 
|                  
|                  
|                  
|                  
|Six months ended   |  | $            | 419,031 |  |      | $ | 716,418 | 

15



---



##### 



ACCENTURE SCA


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(In thousands of U.S. Dollars, except share and per
share amounts or as otherwise disclosed)


(Unaudited)




|   |         
|-- | --------
|5. | GOODWILL



|                           |  |                 |         |  |                |                  |        |             |  |   |                   |   |  |   |         | 
|-------------------------- |  | --------------- | ------- |  | -------------- | ---------------- | ------ | ----------- |  | - | ----------------- | - |  | - | ------- | 
|                           |  |                 |         |  |                | Foreign currency |        |             | 
|                           |  | Balance at      |         |  | Additions/     |                  |        | translation |  |   | Balance at        |  
|                           |  | August 31, 2005 |         |  | Adjustments(1) |                  |        | adjustments |  |   | February 28, 2006 |  
|                           |  |                 |         |  |                |                  |        |             |  |   |                   |  
|Communications & High Tech |  | $               | 73,086  |  |                | $                | 6,069  |             |  | $ | (2,321            | ) |  | $ | 76,834  | 
|                          
|                          
|                          
|                          
|Financial Services         |  |                 | 51,569  |  |                |                  | 224    |             |  |   | (737              | ) |  |   | 51,056  | 
|                          
|                          
|                          
|                          
|Government                 |  |                 | 24,933  |  |                |                  | 117    |             |  |   | (292              | ) |  |   | 24,758  | 
|                          
|                          
|                          
|                          
|Products                   |  |                 | 196,937 |  |                |                  | 23,843 |             |  |   | (855              | ) |  |   | 219,925 | 
|                          
|                          
|                          
|                          
|Resources                  |  |                 | 31,963  |  |                |                  | 182    |             |  |   | (445              | ) |  |   | 31,700  | 
|                           |  |                 |         |  |                |                  |        |             |  |   |                   |  
|Total                      |  | $               | 378,488 |  |                | $                | 30,435 |             |  | $ | (4,650            | ) |  | $ | 404,273 | 
|                           |  |                 |         |  |                |                  |        |             |  |   |                   |  




|    |                                                                                          
|--- | -----------------------------------------------------------------------------------------
|(1) | Additions/ Adjustments primarily represents acquisitions made in
    the current quarter.



|   |                                    
|-- | -----------------------------------
|6. | PROFIT SHARING AND RETIREMENT PLANS



|                                        |  |                                 |         |          |       |   |        |            |          |   |         |   |  |   |        |  
|--------------------------------------- |  | ------------------------------- | ------- | -------- | ----- | - | ------ | ---------- | -------- | - | ------- | - |  | - | ------ | -
|                                        |  | Pension Benefits                |        
|                                        |  |                                 |        
|                                        |  | Three Months Ended February 28, |        
|                                        |  |                                 |        
|                                        |  | 2006                            |         |          | 2005  |  
|                                        |  |                                 |         |          |       |  
|                                        |  |                                 |         | Non-U.S. |       |   |        |            | Non-U.S. |  
|Components of pension expense           |  | U.S. Plans                      |         |          | Plans |   |        | U.S. Plans |          |   | Plans   |  
|                                        |  |                                 |         |          |       |   |        |            |          |   |         |  
|Service cost                            |  | $                               | 16,103  |          |       | $ | 12,173 |            |          | $ | 12,379  |   |  | $ | 12,270 |  
|                                       
|                                       
|                                       
|                                       
|Interest cost                           |  |                                 | 12,481  |          |       |   | 5,225  |            |          |   | 10,417  |   |  |   | 4,518  |  
|                                       
|                                       
|                                       
|                                       
|Expected return on plan assets          |  |                                 | (13,080 | )        |       |   | (4,821 | )          |          |   | (10,723 | ) |  |   | (3,765 | )
|                                       
|                                       
|                                       
|                                       
|Amortization of transitional obligation |  |                                 |        |          |       |   |       |            |          |   |        |   |  |   | 138    |  
|                                       
|                                       
|                                       
|                                       
|Amortization of loss (gain)             |  |                                 | 7,785   |          |       |   | 453    |            |          |   | 3,360   |   |  |   | (276   | )
|                                       
|                                       
|                                       
|                                       
|Amortization of prior service cost      |  |                                 | 287     |          |       |   | 379    |            |          |   | 323     |   |  |   | 308    |  
|                                       
|                                       
|                                       
|                                       
|Special termination benefits charge     |  |                                 |        |          |       |   | 501    |            |          |   |        |   |  |   | (546   | )
|                                        |  |                                 |         |          |       |   |        |            |          |   |         |  
|Total                                   |  | $                               | 23,576  |          |       | $ | 13,910 |            |          | $ | 15,756  |   |  | $ | 12,647 |  
|                                        |  |                                 |         |          |       |   |        |            |          |   |         |  

16



---



##### 



ACCENTURE SCA


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(In thousands of U.S. Dollars, except share and per
share amounts or as otherwise disclosed)


(Unaudited)


|                                        |  |                               |         |          |       |   |        |            |          |   |         |   |  |   |        |  
|--------------------------------------- |  | ----------------------------- | ------- | -------- | ----- | - | ------ | ---------- | -------- | - | ------- | - |  | - | ------ | -
|                                        |  | Pension Benefits              |        
|                                        |  |                               |        
|                                        |  | Six Months Ended February 28, |        
|                                        |  |                               |        
|                                        |  | 2006                          |         |          | 2005  |  
|                                        |  |                               |         |          |       |  
|                                        |  |                               |         | Non-U.S. |       |   |        |            | Non-U.S. |  
|Components of pension expense           |  | U.S. Plans                    |         |          | Plans |   |        | U.S. Plans |          |   | Plans   |  
|                                        |  |                               |         |          |       |   |        |            |          |   |         |  
|Service cost                            |  | $                             | 32,206  |          |       | $ | 25,005 |            |          | $ | 24,758  |   |  | $ | 23,383 |  
|                                       
|                                       
|                                       
|                                       
|Interest cost                           |  |                               | 24,962  |          |       |   | 10,512 |            |          |   | 20,833  |   |  |   | 8,737  |  
|                                       
|                                       
|                                       
|                                       
|Expected return on plan assets          |  |                               | (26,160 | )        |       |   | (9,686 | )          |          |   | (21,446 | ) |  |   | (7,048 | )
|                                       
|                                       
|                                       
|                                       
|Amortization of transitional obligation |  |                               |        |          |       |   |       |            |          |   |        |   |  |   | 269    |  
|                                       
|                                       
|                                       
|                                       
|Amortization of loss (gain)             |  |                               | 15,570  |          |       |   | 919    |            |          |   | 6,720   |   |  |   | (535   | )
|                                       
|                                       
|                                       
|                                       
|Amortization of prior service cost      |  |                               | 574     |          |       |   | 764    |            |          |   | 645     |   |  |   | 592    |  
|                                       
|                                       
|                                       
|                                       
|Special termination benefits charge     |  |                               |        |          |       |   | 501    |            |          |   |        |   |  |   | 341    |  
|                                        |  |                               |         |          |       |   |        |            |          |   |         |  
|Total                                   |  | $                             | 47,152  |          |       | $ | 28,015 |            |          | $ | 31,510  |   |  | $ | 25,739 |  
|                                        |  |                               |         |          |       |   |        |            |          |   |         |  

|                                        |  |                                 |       |          |       |   |      |            |          |   |       |   |  |   |     |  
|--------------------------------------- |  | ------------------------------- | ----- | -------- | ----- | - | ---- | ---------- | -------- | - | ----- | - |  | - | --- | -
|                                        |  | Postretirement Benefits         |      
|                                        |  |                                 |      
|                                        |  | Three Months Ended February 28, |      
|                                        |  |                                 |      
|                                        |  | 2006                            |       |          | 2005  |  
|                                        |  |                                 |       |          |       |  
|                                        |  |                                 |       | Non-U.S. |       |   |      |            | Non-U.S. |  
|Components of postretirement expense    |  | U.S. Plans                      |       |          | Plans |   |      | U.S. Plans |          |   | Plans |  
|                                        |  |                                 |       |          |       |   |      |            |          |   |       |  
|Service cost                            |  | $                               | 2,524 |          |       | $ | 525  |            |          | $ | 1,773 |   |  | $ | 413 |  
|                                       
|                                       
|                                       
|                                       
|Interest cost                           |  |                                 | 1,538 |          |       |   | 442  |            |          |   | 1,384 |   |  |   | 448 |  
|                                       
|                                       
|                                       
|                                       
|Expected return on plan assets          |  |                                 | (355  | )        |       |   |     |            |          |   | (334  | ) |  |   |    |  
|                                       
|                                       
|                                       
|                                       
|Amortization of transitional obligation |  |                                 | 20    |          |       |   |     |            |          |   | 20    |   |  |   |    |  
|                                       
|                                       
|                                       
|                                       
|Amortization of loss (gain)             |  |                                 | 630   |          |       |   | (201 | )          |          |   | 373   |   |  |   | 24  |  
|                                       
|                                       
|                                       
|                                       
|Amortization of prior service cost      |  |                                 | (200  | )        |       |   | 184  |            |          |   | (200  | ) |  |   | (68 | )
|                                        |  |                                 |       |          |       |   |      |            |          |   |       |  
|Total                                   |  | $                               | 4,157 |          |       | $ | 950  |            |          | $ | 3,016 |   |  | $ | 817 |  
|                                        |  |                                 |       |          |       |   |      |            |          |   |       |  

|                                        |  |                               |       |          |       |   |       |            |          |   |       |   |  |   |       |  
|--------------------------------------- |  | ----------------------------- | ----- | -------- | ----- | - | ----- | ---------- | -------- | - | ----- | - |  | - | ----- | -
|                                        |  | Postretirement Benefits       |      
|                                        |  |                               |      
|                                        |  | Six Months Ended February 28, |      
|                                        |  |                               |      
|                                        |  | 2006                          |       |          | 2005  |  
|                                        |  |                               |       |          |       |  
|                                        |  |                               |       | Non-U.S. |       |   |       |            | Non-U.S. |  
|Components of postretirement expense    |  | U.S. Plans                    |       |          | Plans |   |       | U.S. Plans |          |   | Plans |  
|                                        |  |                               |       |          |       |   |       |            |          |   |       |  
|Service cost                            |  | $                             | 5,048 |          |       | $ | 1,043 |            |          | $ | 3,545 |   |  | $ | 863   |  
|                                       
|                                       
|                                       
|                                       
|Interest cost                           |  |                               | 3,076 |          |       |   | 877   |            |          |   | 2,767 |   |  |   | 923   |  
|                                       
|                                       
|                                       
|                                       
|Expected return on plan assets          |  |                               | (710  | )        |       |   |      |            |          |   | (667  | ) |  |   |      |  
|                                       
|                                       
|                                       
|                                       
|Amortization of transitional obligation |  |                               | 40    |          |       |   |      |            |          |   | 40    |   |  |   |      |  
|                                       
|                                       
|                                       
|                                       
|Amortization of loss (gain)             |  |                               | 1,260 |          |       |   | (146  | )          |          |   | 746   |   |  |   | 46    |  
|                                       
|                                       
|                                       
|                                       
|Amortization of prior service cost      |  |                               | (400  | )        |       |   | 112   |            |          |   | (401  | ) |  |   | (68   | )
|                                        |  |                               |       |          |       |   |       |            |          |   |       |  
|Total                                   |  | $                             | 8,314 |          |       | $ | 1,886 |            |          | $ | 6,030 |   |  | $ | 1,764 |  
|                                        |  |                               |       |          |       |   |       |            |          |   |       |  



|   |                                                     
|-- | ----------------------------------------------------
|7. | MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS EQUITY

Share Purchase Activity




17



---



##### 



ACCENTURE SCA


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(In thousands of U.S. Dollars, except share and per
share amounts or as otherwise disclosed)


(Unaudited)




|                                                |  |        |            |  |        |   |           |  
|----------------------------------------------- |  | ------ | ---------- |  | ------ | - | --------- | -
|                                                |  | Shares |            |  | Amount |  
|                                                |  |        |            |  |        |  
|Available authorization as of August 31, 2005   |  |        |            |  |        | $ | 1,121,113 |  
|                                               
|                                               
|                                               
|                                               
|Purchases and redemptions(1)(2)(3)              |  |        | 28,429,440 |  |        |   | (750,899  | )
|                                               
|                                               
|                                               
|                                               
|Additional authorizations(4)                    |  |        |            |  |        |   |          |  
|                                                |  |        |            |  |        |  
|Available authorization as of February 28, 2006 |  |        |            |  |        | $ | 370,214   |  
|                                                |  |        |            |  |        |  




|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes 17,017,398 Accenture SCA Class I common shares
    redeemed or purchased for a total cash outlay of $501,869 and
    240,929 Accenture Canada Holdings Inc. exchangeable shares
    purchased for a total cash outlay of $6,940.                                                                                                                                                                                                                                                                                                       
|(2) | Includes 10,939,355 Accenture Ltd Class A common shares
    purchased by a subsidiary of the Company for an aggregate
    purchase price of $235,431.                                                                                                                                                                                                                                                                                                                                                                                           
|(3) | Includes 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 funds 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 $1,000,000 was authorized
    for redemptions and purchases under the Companys share
    purchase programs.                                                                                                                                                                                                                                                                                                                                                                                                   





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On September 14, 2005, the Company made a tender offer to
    Accenture SCA Class I common shareholders that resulted in
    the redemption and purchase on October 14, 2005 of an
    aggregate of 35,922,744 Accenture SCA Class I common shares
    at a price of $21.50 per share. The total cash outlay for
    this transaction was $774,519 and was separately authorized by
    the Board of Directors of Accenture.
|
| |  | As authorized under its various employee equity share plans, the
    Company acquired an aggregate of 161,869 Accenture Ltd
    Class A common shares via share withholding for payroll tax
    obligations due from the Companys employees and former
    employees in connection with the delivery of Accenture Ltd
    Class A common shares under those plans.                                                         

Other




Dividend




18



---



##### 



ACCENTURE SCA


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(In thousands of U.S. Dollars, except share and per
share amounts or as otherwise disclosed)


(Unaudited)


Class III Common Shares




|                  |  |            |                |                   |               |  |                 |        |  |   |               |  |  |        |             |  |  |   |         | 
|----------------- |  | ---------- | -------------- | ----------------- | ------------- |  | --------------- | ------ |  | - | ------------- |  |  | ------ | ----------- |  |  | - | ------- | 
|                  |  |            |                | February 28, 2006 |               |  | August 31, 2005 |       
|                  |  |            |                |                   |               |  |                 |       
|Title of Issuance |  | Authorized |                |                   | Issued Shares |  |                 | Amount |  |   | Issued Shares |  |  | Amount |            
|                  |  |            |                |                   |               |  |                 |        |  |   |               |  |  |        |            
|Class III         |  |            | 9,782,549,738  |                   |               |  | 496,142,313     |        |  | $ | 558,515       |  |  |        | 437,270,118 |  |  | $ | 490,472 | 
|                 
|                 
|                 
|                 
|Class III-A       |  |            | 5,000,000      |                   |               |  | 5,000,000       |        |  |   | 5,435         |  |  |        | 5,000,000   |  |  |   | 5,435   | 
|                 
|                 
|                 
|                 
|Class III-B       |  |            | 5,000,000      |                   |               |  | 5,000,000       |        |  |   | 5,435         |  |  |        | 5,000,000   |  |  |   | 5,435   | 
|                 
|                 
|                 
|                 
|Class III-C       |  |            | 10,000,000     |                   |               |  | 10,000,000      |        |  |   | 10,870        |  |  |        | 10,000,000  |  |  |   | 10,870  | 
|                 
|                 
|                 
|                 
|Class III-D       |  |            | 10,000,000     |                   |               |  | 10,000,000      |        |  |   | 10,870        |  |  |        | 10,000,000  |  |  |   | 10,870  | 
|                 
|                 
|                 
|                 
|Class III-E       |  |            | 15,000,000     |                   |               |  | 15,000,000      |        |  |   | 16,304        |  |  |        | 15,000,000  |  |  |   | 16,304  | 
|                 
|                 
|                 
|                 
|Class III-F       |  |            | 15,000,000     |                   |               |  | 15,000,000      |        |  |   | 16,304        |  |  |        | 15,000,000  |  |  |   | 16,304  | 
|                 
|                 
|                 
|                 
|Class III-G       |  |            | 20,000,000     |                   |               |  | 20,000,000      |        |  |   | 21,739        |  |  |        | 20,000,000  |  |  |   | 21,739  | 
|                 
|                 
|                 
|                 
|Class III-H       |  |            | 25,000,000     |                   |               |  | 25,000,000      |        |  |   | 27,174        |  |  |        | 25,000,000  |  |  |   | 27,174  | 
|                 
|                 
|                 
|                 
|Class III-I       |  |            | 5,000,000      |                   |               |  | 5,000,000       |        |  |   | 5,435         |  |  |        | 5,000,000   |  |  |   | 5,435   | 
|                 
|                 
|                 
|                 
|Class III-J       |  |            | 5,000,000      |                   |               |  | 5,000,000       |        |  |   | 5,435         |  |  |        | 5,000,000   |  |  |   | 5,435   | 
|                 
|                 
|                 
|                 
|Class III-K       |  |            | 16,050,000     |                   |               |  | 16,050,000      |        |  |   | 18,074        |  |  |        | 16,050,000  |  |  |   | 18,074  | 
|                 
|                 
|                 
|                 
|Class III-L       |  |            | 5,025,720      |                   |               |  | 5,025,720       |        |  |   | 5,540         |  |  |        | 5,025,720   |  |  |   | 5,540   | 
|                 
|                 
|                 
|                 
|Class III-M       |  |            | 68,626,707     |                   |               |  | 68,626,707      |        |  |   | 78,398        |  |  |        | 68,626,707  |  |  |   | 78,398  | 
|                 
|                 
|                 
|                 
|Class III-N       |  |            | 12,747,835     |                   |               |  | 12,747,835      |        |  |   | 18,301        |  |  |        | 12,747,835  |  |  |   | 18,301  | 
|                  |  |            |                |                   |               |  |                 |        |  |   |               |  |  |        |            
|Total             |  |            | 10,000,000,000 |                   |               |  | 713,592,575     |        |  | $ | 803,829       |  |  |        | 654,720,380 |  |  | $ | 735,786 | 
|                  |  |            |                |                   |               |  |                 |        |  |   |               |  |  |        |            



|   |                              
|-- | -----------------------------
|8. | COMMITMENTS AND CONTINGENCIES

Guarantees






19



---



##### 



ACCENTURE SCA


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(In thousands of U.S. Dollars, except share and per
share amounts or as otherwise disclosed)


(Unaudited)




The NHS Contracts




Design, Development and
Deployment of the Systems


percentage-of








| |                     
| | --------------------
| | Operational Services



20



---



##### 



ACCENTURE SCA


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(In thousands of U.S. Dollars, except share and per
share amounts or as otherwise disclosed)


(Unaudited)




Legal Contingencies






|   |                  
|-- | -----------------
|9. | SEGMENT REPORTING

Disclosures about Segments of an Enterprise and Related
Information,






|                           |  |                                 |           |  |               |   |          |                 |  |   |           |  |  |   |         | 
|-------------------------- |  | ------------------------------- | --------- |  | ------------- | - | -------- | --------------- |  | - | --------- |  |  | - | ------- | 
|                           |  | Three Months Ended February 28, |          
|                           |  |                                 |          
|                           |  | 2006                            |           |  | 2005          |  
|                           |  |                                 |           |  |               |  
|                           |  | Revenues before                 |           |  | Operating     |   |          | Revenues before |  |   | Operating | 
|                           |  | Reimbursements                  |           |  | Income (Loss) |   |          | Reimbursements  |  |   | Income    | 
|                           |  |                                 |           |  |               |   |          |                 |  |   |           | 
|Communications & High Tech |  | $                               | 1,026,092 |  |               | $ | 177,488  |                 |  | $ | 982,088   |  |  | $ | 138,496 | 
|                          
|                          
|                          
|                          
|Financial Services         |  |                                 | 833,362   |  |               |   | 102,332  |                 |  |   | 859,336   |  |  |   | 127,053 | 
|                          
|                          
|                          
|                          
|Government                 |  |                                 | 597,687   |  |               |   | (136,584 | )               |  |   | 521,111   |  |  |   | 13,343  | 
|                          
|                          
|                          
|                          
|Products                   |  |                                 | 1,004,205 |  |               |   | (82,678  | )               |  |   | 851,394   |  |  |   | 97,991  | 
|                          
|                          
|                          
|                          
|Resources                  |  |                                 | 639,066   |  |               |   | 76,754   |                 |  |   | 596,493   |  |  |   | 95,069  | 
|                          
|                          
|                          
|                          
|Other                      |  |                                 | 2,383     |  |               |   |         |                 |  |   | 3,100     |  |  |   |        | 
|                           |  |                                 |           |  |               |   |          |                 |  |   |           | 
|Total                      |  | $                               | 4,102,795 |  |               | $ | 137,312  |                 |  | $ | 3,813,522 |  |  | $ | 471,952 | 
|                           |  |                                 |           |  |               |   |          |                 |  |   |           | 

|                           |  |                               |           |  |               |   |         |                 |  |   |           |  |  |   |         | 
|-------------------------- |  | ----------------------------- | --------- |  | ------------- | - | ------- | --------------- |  | - | --------- |  |  | - | ------- | 
|                           |  | Six Months Ended February 28, |          
|                           |  |                               |          
|                           |  | 2006                          |           |  | 2005          |  
|                           |  |                               |           |  |               |  
|                           |  | Revenues before               |           |  | Operating     |   |         | Revenues before |  |   | Operating | 
|                           |  | Reimbursements                |           |  | Income (Loss) |   |         | Reimbursements  |  |   | Income    | 
|                           |  |                               |           |  |               |   |         |                 |  |   |           | 
|Communications & High Tech |  | $                             | 2,073,633 |  |               | $ | 349,794 |                 |  | $ | 1,955,019 |  |  | $ | 287,825 | 
|                          
|                          
|                          
|                          
|Financial Services         |  |                               | 1,688,234 |  |               |   | 183,935 |                 |  |   | 1,666,029 |  |  |   | 222,479 | 
|                          
|                          
|                          
|                          
|Government                 |  |                               | 1,195,806 |  |               |   | (74,962 | )               |  |   | 1,044,914 |  |  |   | 59,610  | 
|                          
|                          
|                          
|                          
|Products                   |  |                               | 2,021,240 |  |               |   | 35,055  |                 |  |   | 1,713,592 |  |  |   | 183,859 | 
|                          
|                          
|                          
|                          
|Resources                  |  |                               | 1,289,352 |  |               |   | 156,046 |                 |  |   | 1,160,885 |  |  |   | 176,329 | 
|                          
|                          
|                          
|                          
|Other                      |  |                               | 4,005     |  |               |   |        |                 |  |   | 3,438     |  |  |   |        | 
|                           |  |                               |           |  |               |   |         |                 |  |   |           | 
|Total                      |  | $                             | 8,272,270 |  |               | $ | 649,868 |                 |  | $ | 7,543,877 |  |  | $ | 930,102 | 
|                           |  |                               |           |  |               |   |         |                 |  |   |           | 

21



---



##### 






ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS


The following discussion and analysis should be read in
conjunction with our Consolidated Financial Statements and
related Notes included elsewhere in this Quarterly Report on
Form 10-Q and in
our Annual Report on
Form 10-K for the
year ended August 31, 2005, and with the information under
the heading Managements Discussion and Analysis of
Financial Condition and Results of Operations in our
Annual Report on
Form 10-K for the
year ended August 31, 2005.


We use the terms we, our Company,
our and us in this report to refer to
Accenture SCA and its subsidiaries. All references to years,
unless otherwise noted, refer to our fiscal year, which ends on
August 31. For example, a reference to fiscal
2005 or fiscal year 2005 means the
12-month period that
ended on August 31, 2005. All references to quarters,
unless otherwise noted, refer to the quarters of our fiscal
year.


Disclosure Regarding Forward-Looking Statements


10-Q




|  |                                                                                                                                                                                                                                                                                                                                         
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our results of operations are materially affected by economic
    and political conditions, levels of business activity and rates
    of change in the industries we serve, as well as by the pace of
    technological change and the type and level of technology
    spending by our clients.                                        
| 
| | Our business will be negatively affected if we are not able to
    anticipate and keep pace with rapid changes in technology or if
    growth in the use of technology in business is not as rapid as
    in the past.                                                                                                                  
| 
| | We may face damage to our professional reputation or legal
    liability if our clients are not satisfied with our services.                                                                                                                                                                                                            
| 
| | Our contracts with clients may not be profitable or may be
    terminated by our clients on short notice.                                                                                                                                                                                                                               
| 
| | As our work with government clients increases, so does our
    exposure to various risks inherent in the government contracting
    process.                                                                                                                                                                                            
| 
| | Our global operations involve many complex risks, some of which
    may be beyond our control.                                                                                                                                                                                                                                          
| 
| | The consulting, technology and outsourcing markets are highly
    competitive and the pace of consolidation, as well as vertical
    integration, among our competitors continues to increase. As a
    result, we may not be able to compete effectively if we cannot
    efficiently respond to these developments in a timely manner.
| 
| | If we are unable to attract, retain and motivate employees, we
    will not be able to compete effectively and will not be able to
    grow our business.                                                                                                                                                                               
| 
| | Our profitability will suffer if we are not able to maintain our
    pricing and utilization rates and control our costs. A
    continuation of current pricing pressures could result in
    permanent changes in pricing policies and delivery capabilities.                                                                          
| 
| | Our quarterly revenues, operating results and profitability will
    vary from quarter to quarter, which may result in increased
    volatility of the share price of Accenture Ltd Class A
    common shares, which, in turn, will affect the current market
    value of Accenture SCAs Class I common shares.                       

22



---



##### 





|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We continue to achieve greater percentages of revenues and
    growth through outsourcing. This continued outsourcing growth
    could result in higher concentrations of revenues and
    contributions to income from a smaller number of our larger
    clients on customized outsourcing solutions or, in the case of
    our more-standardized business process outsourcing services,
    from larger numbers of clients for whom we provide these
    more-standardized services. As our outsourcing business
    continues to grow, we may continue to experience increased
    pressure on our overall margins, particularly during the early
    stages of new outsourcing contracts.
| 
| | On certain complex contracts where we partner with third
    parties, our ability to perform may be adversely affected if
    these third parties cannot deliver their contributions in a
    timely manner. Clients are increasingly demanding that we
    guarantee the performance of these third parties, whom we do not
    control.                                                                                                                                                                                                                                                                                                                                                     
| 
| | We may be exposed to potential risks if we are unable to
    maintain effective internal controls.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| 
| | Tax legislation, future legislation and negative publicity
    related to Bermuda companies such as our parent, Accenture Ltd
    (Accenture), may lead to an increase in our tax
    burden or affect our relationships with our clients.                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| 
| | Our services or solutions may infringe upon the intellectual
    property rights of others.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| 
| | We have only a limited ability to protect our intellectual
    property rights, which are important to our success.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| 
| | If our alliances do not succeed, we may not be successful in
    implementing our growth strategy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| 
| | The share price of Accenture Ltd Class A common shares and,
    consequently, the market value of Accenture SCA Class I
    common shares, may be adversely affected from time to time by
    sales, or the anticipation of future sales, of Accenture Ltd
    Class A common shares held by our employees and former
    employees or received upon the redemption of Accenture SCA
    Class I common shares.                                                                                                                                                                                                                                                                               
| 
| | We may need additional capital in the future, and this capital
    may not be available to us. The raising of additional capital
    may dilute shareholders ownership in Accenture.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| 
| | We are registered in Luxembourg, and a significant portion of
    our assets is located outside the United States. As a result, it
    may not be possible for shareholders to enforce civil liability
    provisions of the Federal or state securities laws of the United
    States.                                                                                                                                                                                                                                                                                                                                                                                                       
| 
| | Luxembourg law differs from the laws in effect in the United
    States and may afford less protection to shareholders.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

10-K


Overview








23



---



##### 















24



---



##### 





Share-Based Payment












The NHS Contracts




25



---



##### 







| |                                                  
| | -------------------------------------------------
| | Design, Development and Deployment of the Systems









| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We completed a detailed review of the status and availability of
    certain application software to be provided by one of our major
    subcontractors, which led us to conclude that the delivery and
    deployment of key components of the Systems will be
    significantly delayed. Due to these delays, we expect that we
    will deploy a larger number of interim Systems over a longer
    period of time in order to meet the short-term needs of local
    healthcare providers, which will increase our costs. In
    addition, we expect these delays to reduce demand for our
    Systems because they may cause some local healthcare providers
    to seek solutions from outside the NHS program and eventually
    not to implement our new Systems when they become available.                                                                                                                                                        
|
| |  | During the second quarter, we modified our planned deployment
    approach, increasing the expected percentage of deployments from
    one of our two primary care solutions. We expect this will
    increase our integration costs. We also expect that integration
    and regression testing costs will increase due to recent
    information regarding delivery plans for the national
    spine into which the Systems we deploy will connect.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | We also now have a greater experience of deploying Systems.
    During the second quarter, we deployed for the first time a
    substantial release of software in an acute NHS facility. Our
    experiences have led us to expect a greater need to customize
    interim Systems, which we expect to increase our costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| |  | During the second quarter, we have seen a reduction in demand
    for Systems from local healthcare providers. We believe this was
    due primarily to the delay in the availability of certain
    application software described above and the announced
    governmental initiative to allow general practitioners to
    upgrade existing systems or deploy alternate systems. While the
    NHS Contracts require us to develop new Systems and incur the
    costs associated with such activities, local healthcare
    providers, as independent statutory bodies, can choose whether
    and when Systems are deployed, and we are entitled to receive
    payments only when Systems are deployed. As a result, this new,
    increased uncertainty as to the timing and level of deployment
    demand has caused us to revise our estimates as to the amount of
    revenue that we expect to receive in connection with the NHS
    Contracts.



26



---



##### 









| |                     
| | --------------------
| | Operational Services



Bookings and Backlog








27



---



##### 



Critical Accounting Policies and Estimates


10-K


Revenues by Segment/Operating Group




28



---



##### 





|                                     |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      |  |     |    |   |  |     |    |   | 
|------------------------------------ | -------------------------- | -------------- | ----- | ----- | ---------- |  | ----- | -------------- | ------------- | ---------------- | ------------ | --- | -- | ---- | -- | --- | ---- |  | --- | -- | - |  | --- | -- | - | 
|                                     |                            |                |       |       |            |  |       |                |               | Percent of Total |             
|                                     |                            |                |       |       |            |  |       |                |               | Revenues Before  |             
|                                     |                            |                |       |       |            |  |       | Reimbursements |              
|                                     |                            | Three Months   |       |       |            |  |       |                | for the Three |                 
|                                     |                            | Ended          |       |       | Percent    |  |       | Percent        |               |                  | Months Ended |    
|                                     |                            | February 28,   |       |       | Increase   |  |       | Increase       |               |                  | February 28, |    
|                                     |                            |                |       |       | (Decrease) |  |       | Local          |               |                  |              |    
|                                     |                            | 2006           |       |       | 2005       |  |       | US$            |               |                  | Currency     |     |    | 2006 |    |     | 2005 | 
|                                     |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      | 
|                                     |                            | (in millions)  |       |       |            |  |       |                |               |                  |             
|                                    
|                                    
|                                    
|                                    
|OPERATING GROUPS                     |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      |  |     |    |   |  |     |   
|                                    
|                                    
|                                    
|                                    
|                                     | Communications & High Tech |                | $     | 1,027 |            |  | $     | 982            |               |                  |              | 4   | %  |      |    | 9   | %    |  |     | 25 | % |  |     | 26 | %
|                                    
|                                    
|                                    
|                                    
|                                     | Financial Services         |                |       | 833   |            |  |       | 859            |               |                  |              | (3  | )  |      |    | 3   |      |  |     | 20 |   |  |     | 22 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Government                 |                |       | 598   |            |  |       | 521            |               |                  |              | 15  |    |      |    | 19  |      |  |     | 15 |   |  |     | 14 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Products                   |                |       | 1,004 |            |  |       | 851            |               |                  |              | 18  |    |      |    | 24  |      |  |     | 24 |   |  |     | 22 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Resources                  |                |       | 639   |            |  |       | 597            |               |                  |              | 7   |    |      |    | 11  |      |  |     | 16 |   |  |     | 16 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Other                      |                |       | 2     |            |  |       | 3              |               |                  |              | n/m |    |      |    | n/m |      |  |     |   |   |  |     |   |  
|                                     |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      | 
|TOTAL Revenues Before Reimbursements |                            |                | 4,103 |       |            |  | 3,813 |                |               |                  | 8            |     |    |      | 13 |     |      |  | 100 | %  |   |  | 100 | % 
|                                     |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      | 
|                                     |                            | Reimbursements |       |       | 388        |  |       |                | 403           |                  |              |     | (4 | )    |    |     |      |  |     |    |   |  |     |    |   | 
|                                     |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      | 
|                                     |                            | TOTAL REVENUES |       | $     | 4,491      |  |       | $              | 4,216         |                  |              |     | 7  | %    |    |     |      |  |     |    |   |  |     |    |   | 
|                                     |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      | 
|GEOGRAPHY                            |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      |  |     |    |   |  |     |   
|                                    
|                                    
|                                    
|                                    
|                                     | Americas                   |                | $     | 1,898 |            |  | $     | 1,572          |               |                  |              | 21  | %  |      |    | 19  | %    |  |     | 46 | % |  |     | 41 | %
|                                    
|                                    
|                                    
|                                    
|                                     | EMEA(1)                    |                |       | 1,914 |            |  |       | 1,970          |               |                  |              | (3  | )  |      |    | 7   |      |  |     | 47 |   |  |     | 52 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Asia Pacific               |                |       | 291   |            |  |       | 271            |               |                  |              | 7   |    |      |    | 15  |      |  |     | 7  |   |  |     | 7  |  
|                                     |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      | 
|TOTAL Revenues Before Reimbursements |                            |                | 4,103 |       |            |  | 3,813 |                |               |                  | 8            |     |    |      | 13 |     |      |  | 100 | %  |   |  | 100 | % 
|                                     |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      | 
|                                     |                            | Reimbursements |       |       | 388        |  |       |                | 403           |                  |              |     | (4 | )    |    |     |      |  |     |    |   |  |     |    |   | 
|                                     |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      | 
|                                     |                            | TOTAL REVENUES |       | $     | 4,491      |  |       | $              | 4,216         |                  |              |     | 7  | %    |    |     |      |  |     |    |   |  |     |    |   | 
|                                     |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      | 
|TYPE OF WORK                         |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      |  |     |    |   |  |     |   
|                                    
|                                    
|                                    
|                                    
|                                     | Consulting                 |                | $     | 2,466 |            |  | $     | 2,301          |               |                  |              | 7   | %  |      |    | 13  | %    |  |     | 60 | % |  |     | 60 | %
|                                    
|                                    
|                                    
|                                    
|                                     | Outsourcing                |                |       | 1,637 |            |  |       | 1,512          |               |                  |              | 8   |    |      |    | 13  |      |  |     | 40 |   |  |     | 40 |  
|                                     |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      | 
|TOTAL Revenues Before Reimbursements |                            |                | 4,103 |       |            |  | 3,813 |                |               |                  | 8            |     |    |      | 13 |     |      |  | 100 | %  |   |  | 100 | % 
|                                     |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      | 
|                                     |                            | Reimbursements |       |       | 388        |  |       |                | 403           |                  |              |     | (4 | )    |    |     |      |  |     |    |   |  |     |    |   | 
|                                     |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      | 
|                                     |                            | TOTAL REVENUES |       | $     | 4,491      |  |       | $              | 4,216         |                  |              |     | 7  | %    |    |     |      |  |     |    |   |  |     |    |   | 
|                                     |                            |                |       |       |            |  |       |                |               |                  |              |     |    |      |    |     |      | 






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

Three Months Ended February 28, 2006 Compared to Three
Months Ended February 28, 2005




| |         
| | --------
| | Revenues





29



---



##### 



















| |                   
| | ------------------
| | Operating Expenses





| |                 
| | ----------------
| | Cost of Services



30



---



##### 









| |                    
| | -------------------
| | Sales and Marketing





| |                                 
| | --------------------------------
| | General and Administrative Costs





| |                        
| | -----------------------
| | Reorganization Benefits





| |                 
| | ----------------
| | Operating Income



31



---



##### 





|                           |  |                                 |      |           |      |   |             |            |  |                |        |   |              |                |    |  |               |   |    |  |  |   |      |  
|-------------------------- |  | ------------------------------- | ---- | --------- | ---- | - | ----------- | ---------- |  | -------------- | ------ | - | ------------ | -------------- | -- |  | ------------- | - | -- |  |  | - | ---- | -
|                           |  | Three Months Ended February 28, |     
|                           |  |                                 |     
|                           |  |                                 |      | Effect of |      |   |            
|                           |  |                                 |      | Increase  |      |   | Adjustments |            |  | Reorganization |        |   | Net Increase |               
|                           |  | 2006                            |      |           | 2005 |   |             | (Decrease) |  |                | (1)(2) |   |              | Benefits(2)(3) |    |  | (Decrease)(2) |  
|                           |  |                                 |      |           |      |   |             |            |  |                |        |   |              |                |    |  |               |  
|                           |  | (in millions)                   |     
|                          
|                          
|                          
|                          
|Communications & High Tech |  | $                               | 177  |           |      | $ | 139         |            |  | $              | 38     |   |              | $              | 12 |  |               | $ | 8  |  |  | $ | 58   |  
|                          
|                          
|                          
|                          
|Financial Services         |  |                                 | 102  |           |      |   | 127         |            |  |                | (25    | ) |              |                | 12 |  |               |   | 7  |  |  |   | (6   | )
|                          
|                          
|                          
|                          
|Government                 |  |                                 | (136 | )         |      |   | 13          |            |  |                | (149   | ) |              |                | 7  |  |               |   | 5  |  |  |   | (137 | )
|                          
|                          
|                          
|                          
|Products                   |  |                                 | (83  | )         |      |   | 98          |            |  |                | (181   | ) |              |                | 13 |  |               |   | 7  |  |  |   | (161 | )
|                          
|                          
|                          
|                          
|Resources                  |  |                                 | 77   |           |      |   | 95          |            |  |                | (18    | ) |              |                | 8  |  |               |   | 4  |  |  |   | (6   | )
|                           |  |                                 |      |           |      |   |             |            |  |                |        |   |              |                |    |  |               |  
|Total                      |  | $                               | 137  |           |      | $ | 472         |            |  | $              | (335   | ) |              | $              | 51 |  |               | $ | 28 |  |  | $ | (256 | )
|                           |  |                                 |      |           |      |   |             |            |  |                |        |   |              |                |    |  |               |  






|    |                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Adjustments represent the estimated amounts that would have been
    incurred had we expensed employee stock options and employee
    share purchase rights for the three months ended
    February 28, 2005.
|(2) | May not total due to rounding.                                                                                                                                                                               
|(3) | Reorganization benefits recorded during the period were
    allocated to the reportable operating groups as follows:                                                                                         

|                           |  |                                 |     |   |         |   |     |           |  |   |    | 
|-------------------------- |  | ------------------------------- | --- | - | ------- | - | --- | --------- |  | - | -- | 
|                           |  | Three Months Ended February 28, |    
|                           |  |                                 |    
|                           |  | 2006(1)                         |     |   | 2005(1) |   |     | Change(1) | 
|                           |  |                                 |     |   |         |   |     |           | 
|                           |  | (in millions)                   |    
|                          
|                          
|                          
|                          
|Communications & High Tech |  | $                               | (3  | ) |         | $ | (11 | )         |  | $ | 8  | 
|                          
|                          
|                          
|                          
|Financial Services         |  |                                 | (3  | ) |         |   | (10 | )         |  |   | 7  | 
|                          
|                          
|                          
|                          
|Government                 |  |                                 | (2  | ) |         |   | (7  | )         |  |   | 5  | 
|                          
|                          
|                          
|                          
|Products                   |  |                                 | (3  | ) |         |   | (10 | )         |  |   | 7  | 
|                          
|                          
|                          
|                          
|Resources                  |  |                                 | (2  | ) |         |   | (6  | )         |  |   | 4  | 
|                           |  |                                 |     |   |         |   |     |           | 
|Total                      |  | $                               | (14 | ) |         | $ | (42 | )         |  | $ | 28 | 
|                           |  |                                 |     |   |         |   |     |           | 






|    |                               
|--- | ------------------------------
|(1) | May not total due to rounding.





| |   |                                                                                                                                                                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Communications & High Tech operating income increased
    primarily due to improved gross margins in our Americas and EMEA
    regions and strong consulting revenue growth in our Americas
    region.                                                                                                                                 
|
| |  | Financial Services operating income decreased due to a decline
    in revenue and higher sales and marketing and general and
    administrative costs.                                                                                                                                                                                  
|
| |  | Government recorded an operating loss principally due to a
    $225 million loss provision associated with the NHS
    Contracts, which was partially offset by strong gross margins in
    outsourcing and increased profitability on certain consulting
    contracts. See  The NHS Contracts.                                     
|
| |  | Products recorded an operating loss principally due to a
    $225 million loss provision associated with the NHS
    Contracts, which was partially offset by strong revenue growth,
    primarily in consulting and outsourcing, as well as improvements
    in gross margins and lower operating costs. See
     The NHS Contracts.
|
| |  | Resources operating income decreased due to delivery
    inefficiencies on a small number of contracts, increases in
    payroll costs and a temporary decline in staff utilization,
    which were partially offset by strong revenue growth.                                                                                          

32



---



##### 





| |                           
| | --------------------------
| | Provision for Income Taxes





Six Months Ended February 28, 2006 Compared to Six
Months Ended February 28, 2005


|                                     |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      |  |     |    |   |  |     |    |   | 
|------------------------------------ | -------------------------- | ---------------- | ----- | ----- | -------- |  | ------- | ----------- | ----- | ---------------- | ------------ | --- | - | ---- | -- | --- | ---- |  | --- | -- | - |  | --- | -- | - | 
|                                     |                            |                  |       |       |          |  |         |             |       | Percent of Total |             
|                                     |                            |                  |       |       |          |  |         |             |       | Revenues Before  |             
|                                     |                            |                  |       |       |          |  |         |             |       | Reimbursements   |             
|                                     |                            |                  |       |       |          |  |         | for the Six |      
|                                     |                            | Six Months Ended |       |       |          |  | Percent |             |       | Months Ended     |             
|                                     |                            | February 28,     |       |       | Percent  |  |         | Increase    |       |                  | February 28, |    
|                                     |                            |                  |       |       | Increase |  |         | Local       |       |                  |              |    
|                                     |                            | 2006             |       |       | 2005     |  |         | US$         |       |                  | Currency     |     |   | 2006 |    |     | 2005 | 
|                                     |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      | 
|                                     |                            | (in millions)    |       |       |          |  |         |             |       |                  |             
|                                    
|                                    
|                                    
|                                    
|OPERATING GROUPS                     |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      |  |     |    |   |  |     |   
|                                    
|                                    
|                                    
|                                    
|                                     | Communications & High Tech |                  | $     | 2,074 |          |  | $       | 1,955       |       |                  |              | 6   | % |      |    | 8   | %    |  |     | 25 | % |  |     | 26 | %
|                                    
|                                    
|                                    
|                                    
|                                     | Financial Services         |                  |       | 1,688 |          |  |         | 1,666       |       |                  |              | 1   |   |      |    | 5   |      |  |     | 20 |   |  |     | 22 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Government                 |                  |       | 1,196 |          |  |         | 1,045       |       |                  |              | 14  |   |      |    | 17  |      |  |     | 15 |   |  |     | 14 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Products                   |                  |       | 2,021 |          |  |         | 1,714       |       |                  |              | 18  |   |      |    | 21  |      |  |     | 24 |   |  |     | 23 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Resources                  |                  |       | 1,289 |          |  |         | 1,161       |       |                  |              | 11  |   |      |    | 13  |      |  |     | 16 |   |  |     | 15 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Other                      |                  |       | 4     |          |  |         | 3           |       |                  |              | n/m |   |      |    | n/m |      |  |     |   |   |  |     |   |  
|                                     |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      | 
|TOTAL Revenues Before Reimbursements |                            |                  | 8,272 |       |          |  | 7,544   |             |       |                  | 10           |     |   |      | 12 |     |      |  | 100 | %  |   |  | 100 | % 
|                                     |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      | 
|                                     |                            | Reimbursements   |       |       | 762      |  |         |             | 744   |                  |              |     | 2 |      |    |     |      |  |     |    |   |  |     |    |   | 
|                                     |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      | 
|                                     |                            | TOTAL REVENUES   |       | $     | 9,034    |  |         | $           | 8,288 |                  |              |     | 9 | %    |    |     |      |  |     |    |   |  |     |    |   | 
|                                     |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      | 
|GEOGRAPHY                            |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      |  |     |    |   |  |     |   
|                                    
|                                    
|                                    
|                                    
|                                     | Americas                   |                  | $     | 3,753 |          |  | $       | 3,126       |       |                  |              | 20  | % |      |    | 19  | %    |  |     | 45 | % |  |     | 41 | %
|                                    
|                                    
|                                    
|                                    
|                                     | EMEA(1)                    |                  |       | 3,925 |          |  |         | 3,880       |       |                  |              | 1   |   |      |    | 7   |      |  |     | 48 |   |  |     | 52 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Asia Pacific               |                  |       | 594   |          |  |         | 538         |       |                  |              | 10  |   |      |    | 14  |      |  |     | 7  |   |  |     | 7  |  
|                                     |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      | 
|TOTAL Revenues Before Reimbursements |                            |                  | 8,272 |       |          |  | 7,544   |             |       |                  | 10           |     |   |      | 12 |     |      |  | 100 | %  |   |  | 100 | % 
|                                     |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      | 
|                                     |                            | Reimbursements   |       |       | 762      |  |         |             | 744   |                  |              |     | 2 |      |    |     |      |  |     |    |   |  |     |    |   | 
|                                     |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      | 
|                                     |                            | TOTAL REVENUES   |       | $     | 9,034    |  |         | $           | 8,288 |                  |              |     | 9 | %    |    |     |      |  |     |    |   |  |     |    |   | 
|                                     |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      | 
|TYPE OF WORK                         |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      |  |     |    |   |  |     |   
|                                    
|                                    
|                                    
|                                    
|                                     | Consulting                 |                  | $     | 5,042 |          |  | $       | 4,686       |       |                  |              | 8   | % |      |    | 11  | %    |  |     | 61 | % |  |     | 62 | %
|                                    
|                                    
|                                    
|                                    
|                                     | Outsourcing                |                  |       | 3,230 |          |  |         | 2,858       |       |                  |              | 13  |   |      |    | 15  |      |  |     | 39 |   |  |     | 38 |  
|                                     |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      | 
|TOTAL Revenues Before Reimbursements |                            |                  | 8,272 |       |          |  | 7,544   |             |       |                  | 10           |     |   |      | 12 |     |      |  | 100 | %  |   |  | 100 | % 
|                                     |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      | 
|                                     |                            | Reimbursements   |       |       | 762      |  |         |             | 744   |                  |              |     | 2 |      |    |     |      |  |     |    |   |  |     |    |   | 
|                                     |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      | 
|                                     |                            | TOTAL REVENUES   |       | $     | 9,034    |  |         | $           | 8,288 |                  |              |     | 9 | %    |    |     |      |  |     |    |   |  |     |    |   | 
|                                     |                            |                  |       |       |          |  |         |             |       |                  |              |     |   |      |    |     |      | 






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

33



---



##### 



Revenues


















Operating Expenses




34



---



##### 





| |                 
| | ----------------
| | Cost of Services







| |                    
| | -------------------
| | Sales and Marketing





| |                                 
| | --------------------------------
| | General and Administrative Costs





| |                        
| | -----------------------
| | Reorganization Benefits



35



---



##### 





| |                 
| | ----------------
| | Operating Income



|                           |  |                               |     |           |      |   |             |            |  |                |        |   |              |               |    |  |               |   |    |  |  |   |      |  
|-------------------------- |  | ----------------------------- | --- | --------- | ---- | - | ----------- | ---------- |  | -------------- | ------ | - | ------------ | ------------- | -- |  | ------------- | - | -- |  |  | - | ---- | -
|                           |  | Six Months Ended February 28, |    
|                           |  |                               |    
|                           |  |                               |     | Effect of |      |   |            
|                           |  |                               |     | Increase  |      |   | Adjustments |            |  | Reorganization |        |   | Net Increase |              
|                           |  | 2006                          |     |           | 2005 |   |             | (Decrease) |  |                | (1)(2) |   |              | Benefit(2)(3) |    |  | (Decrease)(2) |  
|                           |  |                               |     |           |      |   |             |            |  |                |        |   |              |               |    |  |               |  
|                           |  | (in millions)                 |    
|                          
|                          
|                          
|                          
|Communications & High Tech |  | $                             | 350 |           |      | $ | 288         |            |  | $              | 62     |   |              | $             | 19 |  |               | $ | 7  |  |  | $ | 88   |  
|                          
|                          
|                          
|                          
|Financial Services         |  |                               | 184 |           |      |   | 222         |            |  |                | (38    | ) |              |               | 19 |  |               |   | 7  |  |  |   | (12  | )
|                          
|                          
|                          
|                          
|Government                 |  |                               | (75 | )         |      |   | 60          |            |  |                | (135   | ) |              |               | 11 |  |               |   | 5  |  |  |   | (119 | )
|                          
|                          
|                          
|                          
|Products                   |  |                               | 35  |           |      |   | 184         |            |  |                | (149   | ) |              |               | 20 |  |               |   | 6  |  |  |   | (123 | )
|                          
|                          
|                          
|                          
|Resources                  |  |                               | 156 |           |      |   | 176         |            |  |                | (20    | ) |              |               | 13 |  |               |   | 4  |  |  |   | (3   | )
|                           |  |                               |     |           |      |   |             |            |  |                |        |   |              |               |    |  |               |  
|Total                      |  | $                             | 650 |           |      | $ | 930         |            |  | $              | (280   | ) |              | $             | 82 |  |               | $ | 27 |  |  | $ | (171 | )
|                           |  |                               |     |           |      |   |             |            |  |                |        |   |              |               |    |  |               |  






|    |                                                                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Adjustments represent the estimated amounts that would have been
    incurred had we expensed employee stock options and employee
    share purchase rights for the six months ended February 28,
    2005.
|(2) | May not total due to rounding.                                                                                                                                                                             
|(3) | Reorganization benefits recorded during the period were
    allocated to the reportable operating groups as follows:                                                                                       

|                           |  |                               |     |   |         |   |     |           |  |   |    | 
|-------------------------- |  | ----------------------------- | --- | - | ------- | - | --- | --------- |  | - | -- | 
|                           |  | Six Months Ended February 28, |    
|                           |  |                               |    
|                           |  | 2006(1)                       |     |   | 2005(1) |   |     | Change(1) | 
|                           |  |                               |     |   |         |   |     |           | 
|                           |  | (in millions)                 |    
|                          
|                          
|                          
|                          
|Communications & High Tech |  | $                             | (4  | ) |         | $ | (11 | )         |  | $ | 7  | 
|                          
|                          
|                          
|                          
|Financial Services         |  |                               | (3  | ) |         |   | (10 | )         |  |   | 7  | 
|                          
|                          
|                          
|                          
|Government                 |  |                               | (2  | ) |         |   | (7  | )         |  |   | 5  | 
|                          
|                          
|                          
|                          
|Products                   |  |                               | (4  | ) |         |   | (10 | )         |  |   | 6  | 
|                          
|                          
|                          
|                          
|Resources                  |  |                               | (2  | ) |         |   | (6  | )         |  |   | 4  | 
|                           |  |                               |     |   |         |   |     |           | 
|Total                      |  | $                             | (15 | ) |         | $ | (42 | )         |  | $ | 27 | 
|                           |  |                               |     |   |         |   |     |           | 






|    |                               
|--- | ------------------------------
|(1) | May not total due to rounding.





| |   |                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Communications & High Tech operating income increased
    primarily due to improved gross margins and revenue growth in
    our Americas and EMEA regions.                                                                            
|
| |  | Financial Services operating income decreased due to delivery
    inefficiencies on a small number of contracts, a temporary
    decline in staff utilization and higher sales and marketing and
    general and administrative costs.
|
| |  | Government recorded an operating loss principally due to a
    $225 million loss provision associated with the NHS
    Contracts recorded during the second quarter of fiscal 2006,
    which was partially offset by strong gross    

36



---



##### 



| |   |                                                                                                                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | margins in outsourcing and increased profitability on certain
    consulting contracts. See  The NHS
    Contracts.                                                                                                                                                                                                                          
|
| |  | Products recorded an operating loss principally due to a
    $225 million loss provision associated with the NHS
    Contracts recorded during the second quarter of fiscal 2006,
    which was partially offset by strong revenue growth, as well as
    improvement in gross margins and lower operating costs. See
     The NHS Contracts.
|
| |  | Resources operating income decreased due to delivery
    inefficiencies on a small number of contracts, increases in
    payroll costs and a temporary decline in staff utilization,
    which were partially offset by strong revenue growth.                                                                                                  



| |                
| | ---------------
| | Interest Income



Other Expense




Provision for Income Taxes






Liquidity and Capital Resources






| |   |                                                                         
| | - | ------------------------------------------------------------------------
| |  | 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.



37



---



##### 





|                                                             |                      |                               |      |        |      |   |     |        |   |   |      |        |  
|------------------------------------------------------------ | -------------------- | ----------------------------- | ---- | ------ | ---- | - | --- | ------ | - | - | ---- | ------ | -
|                                                             |                      | Six Months Ended February 28, |     
|                                                             |                      |                               |     
|                                                             |                      | 2006                          |      |        | 2005 |   |     | Change |  
|                                                             |                      |                               |      |        |      |   |     |        |  
|                                                             |                      | (in millions)                 |     
|                                                            
|                                                            
|                                                            
|                                                            
|Net cash provided by (used in):                              |                      |                               |      |        |      |   |     |        |   |   |      |       
|                                                            
|                                                            
|                                                            
|                                                            
|                                                             | Operating activities |                               | $    | 1,052  |      |   | $   | 726    |   |   | $    | 326    |  
|                                                            
|                                                            
|                                                            
|                                                            
|                                                             | Investing activities |                               |      | 47     |      |   |     | (199   | ) |   |      | 246    |  
|                                                            
|                                                            
|                                                            
|                                                            
|                                                             | Financing activities |                               |      | (1,517 | )    |   |     | (125   | ) |   |      | (1,392 | )
|                                                            
|                                                            
|                                                            
|                                                            
|Effect of exchange rate changes on cash and cash equivalents |                      |                               | (32  | )      |      |   | 105 |        |   |   | (137 | )     
|                                                             |                      |                               |      |        |      |   |     |        |  
|Net (decrease) increase in cash and cash equivalents         |                      | $                             | (450 | )      |      | $ | 507 |        |   | $ | (957 | )     
|                                                             |                      |                               |      |        |      |   |     |        |  

Operating Activities.


Investing Activities.


Financing Activities.


Borrowing Facilities




|                                                                                         |  |               |       | 
|---------------------------------------------------------------------------------------- |  | ------------- | ----- | 
|                                                                                         |  | Facility      |      
|                                                                                         |  | Amount        |      
|                                                                                         |  |               |      
|                                                                                         |  | (in millions) |      
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|Syndicated loan facility                                                                 |  | $             | 1,500 | 
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|Separate bilateral, uncommitted, unsecured multicurrency
    revolving credit facilities |  |               | 250   | 
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|Local guaranteed and non-guaranteed lines of credit                                      |  |               | 130   | 
|                                                                                         |  |               |      
|Total                                                                                    |  | $             | 1,880 | 
|                                                                                         |  |               |      







| |                 
| | ----------------
| | Client Financing



38



---



##### 





|                                                           |  |                      |      |   |            |   |     | 
|---------------------------------------------------------- |  | -------------------- | ---- | - | ---------- | - | --- | 
|                                                           |  | February 28,         |      |   | August 31, |  
|                                                           |  | 2006                 |      |   | 2005       |  
|                                                           |  |                      |      |   |            |  
|                                                           |  | (In millions, except |     
|                                                           |  | number of clients)   |     
|                                                          
|                                                          
|                                                          
|                                                          
|Number of clients                                          |  |                      | 28   |   |            |   | 29  | 
|                                                          
|                                                          
|                                                          
|                                                          
|Client financing included in Current unbilled services     |  | $                    | 218  |   |            | $ | 262 | 
|                                                          
|                                                          
|                                                          
|                                                          
|Client financing included in Non-current unbilled services |  |                      | 496  |   |            |   | 472 | 
|                                                           |  |                      |      |   |            |  
|Total client financing, current and non-current            |  |                      | 714  |   |            |   | 734 | 
|                                                          
|                                                          
|                                                          
|                                                          
|Loss provision(1)                                          |  |                      | (442 | ) |            |   |    | 
|                                                           |  |                      |      |   |            |  
|Total client financing, net of loss provision              |  | $                    | 272  |   |            | $ | 734 | 
|                                                           |  |                      |      |   |            |  




|    |                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The loss provision established during the second quarter of
    fiscal 2006 was associated with the NHS Contracts. See
     The NHS Contracts.

Share Purchases and Redemptions






| |                                              
| | ---------------------------------------------
| | Senior Executive Trading Policy and Practices







Off-Balance Sheet Arrangements




39



---



##### 










ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK


10-K





ITEM 4. CONTROLS AND PROCEDURES


Evaluation of Disclosure Controls and Procedures


10-Q, 13a-14(c) 15d-14(c)


Changes in Internal Control Over Financial Reporting







PART II  OTHER INFORMATION







|        |                  
|------- | -----------------
|ITEM 1. | LEGAL PROCEEDINGS







40



---



##### 






ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND
USE OF PROCEEDS; ISSUER PURCHASES OF EQUITY SECURITIES


Purchases and redemptions of Accenture SCA Class I
common shares and Accenture Canada Holdings Inc. exchangeable
shares




|                                     |                          |                     |  |            |                |                     |   |                    |                 |  |                    |   |  |  |  |   | 
|------------------------------------ | ------------------------ | ------------------- |  | ---------- | -------------- | ------------------- | - | ------------------ | --------------- |  | ------------------ | - |  |  |  | - | 
|                                     |                          |                     |  |            |                |                     |   | Approximate Dollar |                
|                                     |                          |                     |  |            |                | Total Number of     |   |                    | Value of Shares | 
|                                     |                          |                     |  |            |                | Shares Purchased as |   |                    | that May Yet Be | 
|                                     |                          |                     |  |            |                | Part of Publicly    |   |                    | Purchased Under | 
|                                     |                          | Total Number of     |  |            | Average Price  |                     |   | Announced Plans or |                 |  | Publicly Announced |  
|Period                               |                          | Shares Purchased(1) |  |            | Paid per Share |                     |   | Programs           |                 |  | Plans or Programs  |  
|                                     |                          |                     |  |            |                |                     |   |                    |                 |  |                    |  
|                                    
|                                    
|                                    
|                                    
|Accenture
    SCA                    |                          |                     |  |            |                |                     |   |                    |                 |  |                    |   |  |  |  |  
|                                    
|                                    
|                                    
|                                    
|December 1, 2005  December 31, 2005 |                          |                     |  |            |                |                     |   |                    |                 |  |                    |   |  |  |  |  
|                                    
|                                    
|                                    
|                                    
|                                     | Class I common shares    |                     |  |           |                |                     |   |                   |                 |  |                    |  |  |  |  |  | 
|                                    
|                                    
|                                    
|                                    
|January 1, 2006  January 31, 2006   |                          |                     |  |            |                |                     |   |                    |                 |  |                    |   |  |  |  |  
|                                    
|                                    
|                                    
|                                    
|                                     | Class I common shares    |                     |  | 9,067,451  |                |                     | $ | 30.68              |                 |  |                    |  |  |  |  |  | 
|                                    
|                                    
|                                    
|                                    
|February 1, 2006  February 28, 2006 |                          |                     |  |            |                |                     |   |                    |                 |  |                    |   |  |  |  |  
|                                    
|                                    
|                                    
|                                    
|                                     | Class I common shares    |                     |  | 2,563,884  |                |                     | $ | 32.03              |                 |  |                    |  |  |  |  |  | 
|                                    
|                                    
|                                    
|                                    
|Total                                |                          |                     |  |            |                |                     |   |                    |                 |  |                    |   |  |  |  |  
|                                    
|                                    
|                                    
|                                    
|                                     | Class I common shares(2) |                     |  | 11,631,335 |                |                     | $ | 30.98              |                 |  |                    |  |  |  |  |  | 
|                                    
|                                    
|                                    
|                                    
|Accenture Canada Holdings Inc.       |                          |                     |  |            |                |                     |   |                    |                 |  |                    |   |  |  |  |  
|                                    
|                                    
|                                    
|                                    
|December 1, 2005  December 31, 2005 |                          |                     |  |            |                |                     |   |                    |                 |  |                    |   |  |  |  |  
|                                    
|                                    
|                                    
|                                    
|                                     | Exchangeable shares      |                     |  |           |                |                     |   |                   |                 |  |                    |  |  |  |  |  | 
|                                    
|                                    
|                                    
|                                    
|January 1, 2006  January 31, 2006   |                          |                     |  |            |                |                     |   |                    |                 |  |                    |   |  |  |  |  
|                                    
|                                    
|                                    
|                                    
|                                     | Exchangeable shares(3)   |                     |  | 186,004    |                |                     | $ | 28.63              |                 |  |                    |  |  |  |  |  | 
|                                    
|                                    
|                                    
|                                    
|February 1, 2006  February 28, 2006 |                          |                     |  |            |                |                     |   |                    |                 |  |                    |   |  |  |  |  
|                                    
|                                    
|                                    
|                                    
|                                     | Exchangeable shares      |                     |  | 27,554     |                |                     | $ | 32.51              |                 |  |                    |  |  |  |  |  | 
|                                    
|                                    
|                                    
|                                    
|Total                                |                          |                     |  |            |                |                     |   |                    |                 |  |                    |   |  |  |  |  
|                                    
|                                    
|                                    
|                                    
|                                     | Exchangeable shares      |                     |  | 213,558    |                |                     | $ | 29.13              |                 |  |                    |  |  |  |  |  | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | To date, the Board of Directors of Accenture has authorized an
    aggregate of $3.2 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. As of February 28,
    2006, an aggregate of $252 million remained available for
    these purchases and redemptions and on March 24, 2006, an
    additional $1.0 billion was authorized for use in these
    share purchase programs.
|(2) | During the second quarter of fiscal 2006, the Company redeemed
    and purchased, in accordance with its Articles of Association, a
    total of 11,631,335 Accenture SCA Class I common shares and
    171,319 ACHI exchangeable shares from current and former senior
    executives and their permitted transferees.                                                                                                                                                                                                                              
|(3) | Includes 42,239 ACHI exchangeable shares purchased from a former
    senior executive in a discounted share transaction.                                                                                                                                                                                                                                                                                                                                                                                                                             

Purchases and redemptions of Accenture SCA Class II and
Class III common shares






41



---



##### 



Purchases and redemptions of Accenture Ltd Class A and
Class X common shares




|                                     |                                   |                  |  |            |                |                     |   |                    |                    |  |                   |         |  |  |   |     | 
|------------------------------------ | --------------------------------- | ---------------- |  | ---------- | -------------- | ------------------- | - | ------------------ | ------------------ |  | ----------------- | ------- |  |  | - | --- | 
|                                     |                                   |                  |  |            |                |                     |   | Approximate Dollar |                   
|                                     |                                   |                  |  |            |                |                     |   | Value of Shares    |                   
|                                     |                                   |                  |  |            |                | Total Number of     |   |                    | that May Yet Be    | 
|                                     |                                   |                  |  |            |                | Shares Purchased as |   |                    | Purchased Under    | 
|                                     |                                   |                  |  |            |                | Part of Publicly    |   |                    | Publicly Announced | 
|                                     |                                   | Total Number of  |  |            | Average Price  |                     |   | Announced Plans or |                    |  | Plans or Programs |        
|Period                               |                                   | Shares Purchased |  |            | Paid per Share |                     |   | Programs(1)(2)     |                    |  | (in millions)     |        
|                                     |                                   |                  |  |            |                |                     |   |                    |                    |  |                   |        
|                                    
|                                    
|                                    
|                                    
|December 1, 2005  December 31, 2005 |                                   |                  |  |            |                |                     |   |                    |                    |  |                   |         |  |  |   |    
|                                    
|                                    
|                                    
|                                    
|                                     | Class A common shares             |                  |  | 73,781     |                |                     | $ | 28.72              |                    |  |                   |        |  |  | $ | 703 | 
|                                    
|                                    
|                                    
|                                    
|                                     | Class X common shares             |                  |  |           |                |                     |   |                   |                    |  |                   |        |  |  |   |    | 
|                                    
|                                    
|                                    
|                                    
|January 1, 2006  January 31, 2006   |                                   |                  |  |            |                |                     |   |                    |                    |  |                   |         |  |  |   |    
|                                    
|                                    
|                                    
|                                    
|                                     | Class A common shares             |                  |  | 551,702    |                |                     | $ | 23.51              |                    |  |                   | 75,271  |  |  | $ | 701 | 
|                                    
|                                    
|                                    
|                                    
|                                     | Class X common shares             |                  |  | 7,569,186  |                |                     | $ | 0.0000225          |                    |  |                   |        |  |  |   |    | 
|                                    
|                                    
|                                    
|                                    
|February 1, 2006  February 28, 2006 |                                   |                  |  |            |                |                     |   |                    |                    |  |                   |         |  |  |   |    
|                                    
|                                    
|                                    
|                                    
|                                     | Class A common shares             |                  |  | 70,058     |                |                     | $ | 28.74              |                    |  |                   | 43,623  |  |  | $ | 700 | 
|                                    
|                                    
|                                    
|                                    
|                                     | Class X common shares             |                  |  | 6,608,576  |                |                     | $ | 0.0000225          |                    |  |                   |        |  |  |   |    | 
|                                    
|                                    
|                                    
|                                    
|Total                                |                                   |                  |  |            |                |                     |   |                    |                    |  |                   |         |  |  |   |    
|                                    
|                                    
|                                    
|                                    
|                                     | Class A common shares(1)(2)(3)(4) |                  |  | 695,541    |                |                     | $ | 24.59              |                    |  |                   | 118,894 |  |  |   |     | 
|                                    
|                                    
|                                    
|                                    
|                                     | Class X common shares(5)          |                  |  | 14,177,762 |                |                     | $ | 0.0000225          |                    |  |                   |        |  |  |   |     | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Since April 2002, 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 second quarter of fiscal
    2006, we did not purchase any Accenture Ltd Class A common
    shares under this program. The Board of Directors of Accenture
    has authorized an aggregate of $1.6 billion for use in
    these open-market share purchases. As of February 28, 2006,
    an aggregate of $581 million remained available for these
    open-market share purchases and on March 24, 2006, an
    additional $500 million was authorized for use in these
    open-market share purchases. The open-market purchase program
    does not have an expiration date.
|(2) | In July 2002, the Company publicly announced our 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
    Accentures initial public offering. During the second
    quarter of fiscal 2006, 118,894 Accenture Ltd Class A
    common shares were purchased under this program. The RSU
    Sell-Back Program was terminated, effective March 1, 2006.
    The approximately $119 million of remaining funds
    authorized for purchases under this program have been made
    available for use in the Companys other share purchase
    programs.                                                                                                                   
|(3) | During the second quarter of fiscal 2006, the Company purchased
    474,238 Accenture Ltd Class A common shares for an
    aggregate purchase price of $10 million. These transactions
    consisted of purchases of Accenture shares received in
    connection with Accentures transition to a corporate
    structure held by certain former senior executives.                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(4) | During the second quarter of fiscal 2006, Accenture purchased
    102,409 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.                                                                                                                                                                                                                                                                                   
|(5) | During the second quarter of fiscal 2006, Accenture redeemed
    14,177,762 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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##### 






ITEM 3. DEFAULTS UPON SENIOR SECURITIES







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







ITEM 5. OTHER INFORMATION









ITEM 6. EXHIBITS




|        |    |         |  |                                                                                                                                                                                                              
|------- | -- | ------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |        
|Number  |    | Exhibit
|        |    |        
|        | 10 | .1      |  | Description of Accenture Annual Bonus Plan                                                                                                                                                                   
|       
|        | 31 | .1      |  | Certification of the Chief Executive Officer pursuant to
    Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act
    of 1934, as adopted pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002
|       
|        | 31 | .2      |  | Certification of the Chief Financial Officer pursuant to
    Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act
    of 1934, as adopted pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002
|       
|        | 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                                                
|       
|        | 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                                                

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##### 






SIGNATURES




|                     |  |                                                                                                                             
|-------------------- |  | ----------------------------------------------------------------------------------------------------------------------------
|Date: March 31, 2006 |  | ACCENTURE SCA
    represented by its general partner, Accenture Ltd, itself
    represented by its duly authorized signatory
|                     |  | By: /s/ Michael G. McGrath                                                                                                  
|                     |  |                                                                                                                             
|                     |  | Name: Michael G. McGrath                                                                                                    
|                     |  | Title:   Chief Financial Officer of Accenture
    Ltd, general partner of Accenture SCA                                     

44