Philips 2008 Annual Report Download - page 192

Introduction
This chapter of this Annual Report contains the IFRS management
commentary and the audited consolidated financial 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 financial statements, this
chapter contains the statutory financial statements of the Company.
The IFRS management commentary together with the following
chapters, sections and pages of this Annual Report:
Who we are that begins on page 14 of this Annual Report;
•
We care about... that begins on page 18 of this Annual Report;•
Our group performance that begins on page 42 of this Annual •
Report; including the management discussion and analysis;
Our sector performance that begins on page 70 of this
•
Annual Report;
Report of the Remuneration Committee that begins on page 116
•
of this Annual Report;
Risk management that begins on page 94 of this Annual Report; and•
Corporate governance that begins on page 254 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 Our group performance and Our sector performance
provide an extensive analysis of the developments during the financial
year 2008 and the results. These chapters also provide information on
the business outlook, investments, financing, personnel and research
and development activities. It should be noted that the figures 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 figures that
are referred to.
The section IFRS management commentary provides an analysis in
summarized form of the developments during the financial year 2008
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.
IFRS financial
statements
The income statement included in the chapter Company financial
statements has been prepared in accordance with section 2:402 of
the Dutch Civil Code, which allows a simplified income statement in
the Company financial statements in the event that a comprehensive
income statement is included in the consolidated financial 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 243, the Auditor’s report on page 249, the section Proposed
distribution to shareholders on page 68 of this Annual Report,
and note 70 for subsequent events.
The IFRS management commentary is based on the IFRS consolidated
financial 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 44 of this Annual Report for more information
about forward-looking statements, third-party market share data, fair
value information, and revisions and reclassifications.
The Board of Management of the Company hereby declares that,
to the best of their knowledge, the IFRS financial statements and
Company financial statements give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company and
the undertakings included in the consolidation taken as a whole and
that the management report referred to above gives a true and fair
view concerning the position as per the balance sheet date, the
development and performance of the business during the financial year
of the Company and the undertakings included in the consolidation
taken as a whole, together with a description of the principal risks
that they face.
Board of Management
February 23, 2009
Philips Annual Report 2008192
180
Sustainability performance
244
Company financial statements
124
US GAAP financial statements
192
IFRS financial statements
IFRS management commentary