GE 2005 Annual Report Download - page 66

Download and view the complete annual report

Please find page 66 of the 2005 GE annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 164

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164

(66)
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements appearing on pages 67, 69, 70, 72 and 74-143 and the
Summary of Operating Segments table on page 38 present fairly, in all material respects, the financial position of
GE as of December 31, 2005 and 2004, and the results of its operations and its cash flows for each of the years in
the three-year period ended December 31, 2005 in conformity with U.S. generally accepted accounting principles.
As discussed in note 1 to the consolidated financial statements, the consolidated financial statements have
been restated.
As discussed in note 1 to the consolidated financial statements, GE in 2004 and 2003 changed its method of
accounting for variable interest entities and in 2003 changed its method of accounting for asset retirement
obligations.
Our audits were made for the purpose of forming an opinion on the consolidated financial statements taken
as a whole. The accompanying consolidating information appearing on pages 68, 71 and 73 is presented for
purposes of additional analysis of the consolidated financial statements rather than to present the financial position,
results of operations and cash flows of the individual entities. The consolidating information has been subjected to
the auditing procedures applied in the audits of the consolidated financial statements and, in our opinion, is fairly
stated in all material respects in relation to the consolidated financial statements taken as a whole.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States), the effectiveness of the Company's internal control over financial reporting as of
December 31, 2005, based on criteria established in Internal Control − Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 10,
2006, except as to the second, third and fourth paragraphs of Management’ s Annual Report on Internal Control over
Financial Reporting (as restated), which are as of January 19, 2007, expressed an unqualified opinion on
management's assessment of, and an adverse opinion on the effective operation of, internal control over financial
reporting as of December 31, 2005.
/s/ KPMG LLP
KPMG LLP
Stamford, Connecticut
February 10, 2006, except as to the restatement discussed in note 1 to the consolidated financial statements, which is
as of January 19, 2007