Philips 2007 Annual Report Download - page 53

Philips Annual Report 2007 59
Since the ultimate disposition of asserted claims
and proceedings and investigations cannot be predicted
with certainty, an adverse outcome could have a material
adverse effect on the Company’s consolidated nancial
position and consolidated results of operations for
a particular period.
For a description of the legal proceedings relating
to asbestos, MedQuist, LG.Philips LCD and CRT
investigations and other matters, please refer to note 27.
IFRS-only
Currently, Philips’ primary external and internal reporting
is based on US GAAP. In addition, Philips issues quarterly
and annual nancial information prepared in accordance
with International Financial Reporting Standards (IFRS).
The US Securities and Exchange Commission (SEC) has
issued a nal ruling that eliminates the requirement that
‘Foreign Private Issuers’ such as Philips le US GAAP-
based nancial statements (or a reconciliation thereto)
and will accept reporting based solely on IFRS.
Consequently, Philips will simplify its reporting by moving
to IFRS as its sole reporting standard no later than from
January 1, 2009, and will discontinue the use of US GAAP
as of the same date.
98 Risk management 112 Our leadership 116 Report of the Supervisory Board 126 Financial Statements