Philips 2007 Annual Report Download - page 239

Philips Annual Report 2007 245
−
−
−−−−−−−
−−−
Intercompany nancing − − −
−
are due in the next ve years:
−
exercised. As a means to protect the Company and its stakeholders
upon exercise of options and convertible personnel debentures and
at an average exercise price of EUR 17.86 totaling EUR 199 million.
G
H
31, 2007 (2006: 35,933,526 shares), acquired at an aggregate cost of
3,940 million is expected to be added to retained earnings.
(2006: EUR 4,671 million), changes in the fair value of cash ow hedges
of EUR 28 million (2006: EUR 8 million) and the revaluation of assets
and liabilities of acquired companies in the context of multi-stage
acquisitions of EUR 133 million (2006: EUR 167 million). Unrealized
Legal reserve afliated companies’
relates to investments in afliated companies (‘wettelijke reserve
deelnemingen’) of EUR 1,343 million (2006: EUR 1,291 million).
EUR 613 million (2006: prot of EUR 235 million).
Pursuant to Dutch law certain limitations exist relating to the
distribution of stockholders’ equity. As a further explanation it
to common stock of EUR 228 million (2006: EUR 228 million) as well
(2006: EUR 4,846 million) and ‘afliated companies’ of EUR 1,343 million
(2006: EUR 1,291 million), totaling EUR 2,915 million (2006: EUR
Net income in 2007 amounted to a prot of EUR 4,655 million
(2006: a prot of EUR 4,664 million).
I
J
Employees
The number of persons employed by the Company at year-end
2007 was 13 (2006: 10) and included the members of the Board
of Management and most members of the Group Management
Committee.
For the remuneration of past and present members of both the Board
of Management and the Supervisory Board, please refer to note 34,
which is deemed incorporated and repeated herein by reference.
K
Obligations not appearing in the balance sheet
General guarantees as referred to in Section 403, Book 2, of the
Dutch Civil Code, have been given by the Company on behalf of
several Group companies in the Netherlands. The liabilities of
these companies to third parties and equity-accounted investees
totalled EUR 1,232 million as of year-end 2007 (2006: EUR 1,215
million). Guarantees totalling EUR 256 million (2006: EUR 262 million)
have also been given on behalf of other Group companies, and
guarantees totalling EUR 44 million (2006: EUR 32 million) on
behalf of unconsolidated companies and third parties. For additional
information, please refer to note 62.
L
Subsequent events
For a description of subsequent events, please refer to note 70.
February 18, 2008
The Supervisory Board
The Board of Management
J
K
L
Auditor’s report
To the Supervisory Board and Shareholders of Koninklijke Philips
Electronics N.V.:
Report on the Company nancial statements
We have audited the accompanying Company nancial statements
2007 which are part of the nancial statements 2007 of Koninklijke
Philips Electronics N.V., Eindhoven, The Netherlands, which comprise
the balance sheet as at December 31, 2007, statement of income
and the statement of changes in equity for the year then ended,
and the notes as set out on page 240 to 245.
Management’s responsibility
The Board of Management is responsible for the preparation and
fair presentation of the Company nancial statements and for the
preparation of the Management report, both in accordance with Part
9 of Book 2 of the Dutch Civil Code. This responsibility includes:
designing, implementing and maintaining internal control relevant
to the preparation and fair presentation of the Company 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 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 nancial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the Company nancial
statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material
misstatement of the Company 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 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 nancial statements.
We believe that the audit evidence we have obtained is sufcient
and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the Company nancial statements give a true and fair
view of the nancial position of Koninklijke Philips Electronics N.V.
as at December 31, 2007, and of its result for the year then ended in
accordance with Part 9 of Book 2 of the Dutch Civil Code.
Report on other legal and regulatory requirements
Pursuant to the legal requirement under 2:393 sub 5 part e of the
Dutch Civil Code, we report, to the extent of our competence, that
the Management report as set out on page 188 to 193, is consistent
with the Company nancial statements as required by 2:391 sub 4
of the Dutch Civil Code.
Amstelveen, February 18, 2008
KPMG Accountants N.V.
M.A. Soeting RA
Group nancial statements Company nancial statements 250 Corporate governance246 Reconciliation of
non-US GAAP information 258 The Philips Group in the last ten years 260
Investor information