Some chipping, surface abrasions, and losses including head of shepherd on upper left and head of angels on upper right (two are restored). Chipping around edges of relief and small loss on lower right corner. Later polychromy. Frame with some old restoration. Some replacement to molding on the sides. Some loose molding, some losses around edges, and chipping. Some worming and losses to polychromy. 3 iron loops on lower portion perhaps for candle arms.
In response to your inquiry, we are pleased to provide you with a general report of the condition of the property described above. Since we are not professional conservators or restorers, we urge you to consult with a restorer or conservator of your choice who will be better able to provide a detailed, professional report. Prospective buyers should inspect each lot to satisfy themselves as to condition and must understand that any statement made by Sotheby's is merely a subjective qualified opinion.
NOTWITHSTANDING THIS REPORT OR ANY DISCUSSIONS CONCERNING CONDITION OF A LOT, ALL LOTS ARE OFFERED AND SOLD "AS IS" IN ACCORDANCE WITH THE CONDITIONS OF SALE PRINTED IN THE CATALOGUE.

The present relief is the third known version of this composition; the earliest example and one made of terracotta  is now in the Detroit Institute of Arts (known as the Ford Nativity) and another stucco version is in the Bardini Collection, Florence.
Three separate episodes are represented here: the Nativity, the Annunciation to the Shepherds and the Adoration of the Shepherds. Each scene recalls Ghiberti’s use of classically inspired figures in a naturalistic landscape setting seen in his work on the Baptistry doors in Florence, a style that was widely hailed and replicated throughout the century.
In the first half of the 20th century, Bode and Valentiner attributed the Ford Nativity, to Lorenzo Ghiberti based on stylistic grounds. More recently, Bellosi and Gentilini have attributed the composition to the young Donatello based on comparisons with his documented works from the first quarter of the 15th century. 
Donatello was apprenticed to Ghiberti from 1404 to 1407 and their mutual influence  justifies the debate. Both sculptors defined the new Renaissance style of relief sculpture and the work of both artists was replicated by their contemporaries (Motture, op. cit.), partially because of the growing market for private devotional images.

RELATED LITERATURE
Enrica Neri Lusanna and Lucia Faedo, Il Museo Bardini a Firenze. Le Scultura, Milan, 1986, p. 244  no. 169, fig. 207;
Alan P. Darr, Peter Barnet, Antonia Bostrum, Italian Sculpture in the Detroit Institute of Arts, vol. I, London 2002, cat. no. 51, pp. 92-95;
Peta Motture, "Making and Viewing: Donatello and the Treatment of the Relief," in Depth of field: the place of relief in the time of Donatello, Leeds, 2004, pp. 18-29