Philips 2008 Annual Report Download - page 124

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US GAAP
nancial
statements
Management’s report on internal control over
nancial reporting pursuant to section 404
of the US Sarbanes-Oxley Act
The Board of Management of Koninklijke Philips Electronics N.V.
(‘the Company’) is responsible for establishing and maintaining an
adequate system of internal control over nancial reporting (as such
term is dened in Rule 13a-15(f) under the US Securities Exchange
Act). Internal control over nancial reporting is a process to provide
reasonable assurance regarding the reliability of our nancial reporting
for external purposes in accordance with accounting principles
generally accepted in the United States of America (US GAAP).
Internal control over nancial reporting includes maintaining records
that, in reasonable detail, accurately and fairly reect our transactions;
providing reasonable assurance that transactions are recorded as
necessary for preparation of our nancial statements; providing
reasonable assurance that receipts and expenditures of company
assets are made in accordance with management authorization; and
providing reasonable assurance that unauthorized acquisition, use
or disposition of company assets that could have a material effect
on our nancial statements would be prevented or detected on
a timely basis. Because of its inherent limitations, internal control
over nancial reporting is not intended to provide absolute assurance
that a misstatement of our nancial statements would be prevented
or detected.
The Board of Management conducted an assessment of the Company’s
internal control over nancial reporting based on the Internal Control-
Integrated Framework established by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). Based on
that assessment, the Board of Management concluded that, as of
December 31, 2008, the Company’s internal control over US GAAP
nancial reporting is considered effective.
The Board of Management’s assessment of the effectiveness of the
Company’s internal control over nancial reporting as of December
31, 2008, excluded the following companies acquired by the Company
after January 1, 2008: VISICU Inc., Philips Healthcare Informatics
Limited (formally known as TOMCAT Ltd.), Shenzhen Goldway
Industrial Inc., Dixtal Biomédica Indústria e Comércio Ltda., Dixtal
Tecnologia Indústria e Comércio Ltda., Alpha X-Ray Technologies,
and Melhk Ltd. These acquisitions are wholly-owned subsidiaries of
the Company of which total assets represented 1.0% of consolidated
total assets and net sales represented less than 0.5% of consolidated
net sales of the Company as of and for the year ended December 31,
2008. If adequately disclosed, companies are allowed to exclude
acquisitions from their assessment of internal control over nancial
reporting during the year of acquisition while integrating the acquired
company under guidelines established by the US Securities and
Exchange Commission.
The effectiveness of the Company’s internal control over US GAAP
nancial reporting as of December 31, 2008, as included in this
chapter US GAAP nancial statements, has been audited by KPMG
Accountants N.V., an independent registered public accounting rm,
as stated in their report which follows hereafter.
Board of Management
February 23, 2009
Philips Annual Report 2008124
180
Sustainability performance
192
IFRS nancial statements
244
Company nancial statements
124
US GAAP nancial statements
- Management’s report
- Auditor’s report