Philips 2008 Annual Report Download - page 246

Introduction
Statutory financial statements
The chapters IFRS financial statements and Company financial
statements contain the statutory financial statements of Koninklijke
Philips Electronics N.V. (the ‘Company’).
Accounting policies applied
The financial statements of the Company included in this chapter
are prepared in accordance with Part 9 of Book 2 of the Dutch
Civil Code. Section 362 (8), Book 2, Dutch Civil Code, which allows
companies that apply IFRS as adopted by the European Union in their
consolidated financial statements to use the same measurement
principles in their company financial statements. The Company has
prepared these Company financial statements using this provision.
The accounting policies are described in the section Significant IFRS
accounting policies that begins on page 209 of this Annual Report.
Subsidiaries are accounted for using the net equity value in these
Company financial statements.
Presentation of Company financial statements
The balance sheet presentation deviates from Dutch regulations and
is more in line with common practice in the US in order to achieve
optimal transparency for Dutch and US shareholders.
Under this format, the order of presentation of assets and liabilities is
based on the decreasing degree of liquidity, which is common practice
in the US.
The income statement 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
a comprehensive income statement is included in the
consolidated statements.
Additional information
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 and the section Proposed distribution
to shareholders on page 68 of this Annual Report.
Notes to the Company financial statements
All amounts in millions of euros unless otherwise stated
A
Receivables
2007 2008
Trade accounts receivable 169 104
Affiliated companies 16,481 613
Other receivables 97 87
Advances and prepaid expenses 61 42
Deferred tax assets 65 32
Derivative instruments - assets 276 478
17,149 1,356
An amount of EUR 45 million included in receivables is due after one
year (2007: EUR 65 million).
Until June 2008, cash transactions with US-based group companies
were executed through Koninklijke Philips Electronics N.V. (KPENV),
which resulted in significant individual short-term intercompany
receivables and payables. As from that date, and in line with the
standard practice in other countries, these intercompany receivables
and payables are periodically cleared via Philips Electronics North
America Corporation, a subsidiary of KPENV. Consequently, the
intercompany receivables stated under ‘Affiliated companies’ are
significantly lower compared to previous years.
B
Investments in affiliated companies
The investments in affiliated companies are included in the balance
sheet based on either their net asset value in accordance with the
aforementioned accounting principles of the consolidated financial
statements, or at amortized cost.
equity
investments loans total
Balance as of
January 1, 20081) 16,089 1,006 17,095
Changes:
Transferred to other
non-current financial assets (1,524) −(1,524)
Acquisitions/additions 2,453 4,140 6,593
Sales/redemptions (189) (151) (340)
After-tax income (loss)
from affiliated companies (729) −(729)
Dividends received (2,216) −(2,216)
Translation differences (161) 234 73
Other (995) −(995)
Balance as of
December 31, 2008 12,728 5,229 17,957
The balance as of January 1, 2008 has been restated and revised; see
1)
Significant IFRS accounting policies, sections Change in accounting policy
and Reclassifications and revisions for more details.
Philips Annual Report 2008246
180
Sustainability performance
192
IFRS financial statements
124
US GAAP financial statements
145
Company financial statements
- Introduction
- Notes to the Company financial statements