Philips 2007 Annual Report Download - page 182

Philips Annual Report 2007188
IFRS nancial statements
Introduction
This chapter of this Annual Report contains the IFRS management
commentary and the audited consolidated nancial statements including
the notes thereon prepared in accordance with the International
Financial Reporting Standards as adopted by the European Union
and with the statutory provisions of Part 9, Book 2 of the Dutch Civil
Code. Together with the chapter Company nancial statements, this
chapter contains the statutory nancial statements of the Company.
The IFRS management commentary together with the following
chapters, sections and pages of this Annual Report;
The Philips Group that begins• on page 16 of this Annual Report;
including the management discussion and analysis;
The Philips sectors • that begins on page 62 of this Annual Report;
Risk management that begins on page 98 of this Annual Report;•
Report of the Remuneration Committee that begins on page 118 •
of this Annual Report; and
Corporate governance that begins on page 250 of this Annual Report•
which are deemed incorporated and repeated in this chapter by
reference, form the management report within the meaning of
section 2:391 of the Dutch Civil Code (and related Decrees).
The chapters The Philips Group and The Philips sectors provide an
extensive analysis of the developments during the nancial year 2007
and the results. These chapters also provide information on the
business outlook, investments, nancing, personnel and research and
development activities. It should be noted that the gures used in
these chapters are based on US GAAP because Philips’ primary
external and internal reporting is currently based on US GAAP.
However, the commentary and analysis set out in these chapters is
no different under US GAAP or IFRS, except for the gures that are
referred to.
The section IFRS management commentary provides an analysis in
summarized form of the developments during the nancial year 2007 and
the results based on IFRS on group and sector level. To further facilitate
understanding of the major differences between US GAAP and IFRS
that affect stockholders’ equity and net income, this section includes
a reconciliation from IFRS to US GAAP in respect of these items.
The income statement included in the chapter Company nancial
statements has been prepared in accordance with section 2:402 of
the Dutch Civil Code, which allows a simplied income statement in
the Company nancial statements in the event that a comprehensive
income statement is included in the consolidated nancial statements.
For ‘Additional information’ within the meaning of section 2:392 of the
Dutch Civil Code, please refer to the Auditor’s report on page 239 of
this Annual Report, the Auditor’s report on page 245 of this Annual
Report, the Proposed dividend to shareholders on page 60 of this
Annual Report, and note 70 for subsequent events.
The IFRS management commentary is based on the IFRS consolidated
nancial statements and should be read in conjunction with these
statements. The term EBIT has the same meaning as Income from
operations (IFO), and is used to evaluate the performance of the business.
Please refer to page 6 of this Annual Report for more information about
forward-looking statements, third-party market share data, fair value
information, and reclassications.
128 Group nancial statements 188 IFRS information
IFRS management commentary
240 Company nancial statements