Philips 2006 Annual Report Download - page 223

Philips Annual Report 2006 223
II
JJ
KK
LL
MM
To the Supervisory Board and Shareholders of Koninklijke Philips
Electronics N.V.:
Report on the Company fi nancial statements
We have audited the accompanying Company fi nancial statements
2006 which are part of the fi nancial statements of Koninklijke Philips
Electronics N.V., Eindhoven, The Netherlands, which comprise the
balance sheet as at December 31, 2006, statement of income and the
statement of changes in equity for the year then ended and the notes
as set out on page 218 to 222.
Management’s responsibility
The Board of Management is responsible for the preparation and
fair presentation of the Company fi nancial statements and for the
preparation of the Management commentary, both in accordance with
Part 9 of Book 2 of the Netherlands Civil Code. This responsibility
includes: designing, implementing and maintaining internal control relevant
to the preparation and fair presentation of the Company fi nancial
statements that are free from material misstatement, whether due to
fraud or error; selecting and applying appropriate accounting policies;
and making accounting estimates that are reasonable in the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on the Company fi nancial
statements based on our audit. We conducted our audit in accordance
with Dutch law. This law requires that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance whether the Company fi nancial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the Company fi nancial
statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material
misstatement of the Company fi nancial statements, whether due
to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and
fair presentation of the Company fi nancial statements in order to
design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness
of accounting estimates made by management, as well as evaluating
the overall presentation of the Company fi nancial statements.
We believe that the audit evidence we have obtained is suffi cient
and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the Company fi nancial statements give a true and fair
view of the fi nancial position of Koninklijke Philips Electronics N.V.
as at December 31, 2006, and of its result for the year then ended in
accordance with Part 9 of Book 2 of the Netherlands Civil Code.
Report on other legal and regulatory requirements
Pursuant to the legal requirement under 2:393 sub 5 part e of the
Netherlands Civil Code, we report, to the extent of our competence,
that the Management commentary as set out on page 172 to 173,
is consistent with the Company fi nancial statements as required by
2:391 sub 4 of the Netherlands Civil Code.
Amstelveen, February 19, 2007
KPMG Accountants N.V.
A.M. van Drunen Littel RA
Auditors’ report
226 Corporate governance224 Reconciliation of
non-US GAAP information
234 The Philips Group
in the last ten years
236 Investor information