Philips 2015 Annual Report Download - page 103

Group nancial statements 12
Annual Report 2015 103
12 Group nancial statements
Introduction
This section of the Annual Report contains the audited
consolidated nancial statements including the notes
thereon that have been prepared in accordance with
International Financial Reporting Standards (IFRS) as
endorsed by the European Union (EU) and with the
statutory provisions of Part 9, Book 2 of the Dutch Civil
Code. All standards and interpretations issued by the
International Accounting Standards Board (IASB) and
the IFRS Interpretations Committee eective year-end
2015 have been endorsed by the EU, except that the EU
did not adopt some paragraphs of IAS 39 applicable to
certain hedge transactions. Philips has no hedge
transactions to which these paragraphs are applicable.
Consequently, the accounting policies applied by
Philips also comply fully with IFRS as issued by the
IASB.
Together with the section Company nancial
statements, this section contains the statutory nancial
statements of the Company.
The following sections and chapters:
• chapter 4, Our strategic focus, of this Annual Report
•chapter 5, Group performance, of this Annual Report
•chapter 6, Sector performance, of this Annual Report
• chapter 7, Risk management, of this Annual Report
• chapter 10, Supervisory Board report, of this Annual
Report
•section 10.1, Report of the Corporate Governance and
Nomination & Selection Committee, of this Annual
Report
•section 10.2, Report of the Remuneration Committee,
of this Annual Report
• chapter 11, Corporate governance, of this Annual
Report
• chapter 19, Forward-looking statements and other
information, of this Annual Report
form the Management report within the meaning of
section 2:391 of the Dutch Civil Code (and related
Decrees).
The sections Group performance and Sector
performance provide an extensive analysis of the
developments during the nancial year 2015 and the
results. The term EBIT has the same meaning as Income
from operations (IFO), and is used to evaluate the
performance of the business. These sections also
provide information on the business outlook,
investments, nancing, personnel and research and
development activities.
The Statement of income included in the section
Company nancial statements has been prepared in
accordance with section 2:402 of the Dutch Civil Code,
which allows a simplied Statement of income in the
Company nancial statements in the event that a
comprehensive Statement of income is included in the
consolidated Group nancial statements.
For ‘Additional information’ within the meaning of
section 2:392 of the Dutch Civil Code, please refer to
section 13.5, Independent auditor’s report, of this
Annual Report, section 5.4, Proposed distribution to
shareholders, of this Annual Report, and note 32,
Subsequent events.
Please refer to chapter 19, Forward-looking statements
and other information, of this Annual Report for more
information about forward-looking statements, third-
party market share data, fair value information, and
revisions and reclassications.
The Board of Management of the Company hereby
declares that, to the best of our knowledge, the Group
nancial statements and Company nancial statements
give a true and fair view of the assets, liabilities, nancial
position and prot 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 nancial 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
Frans van Houten
Abhijit Bhattacharya
Pieter Nota
February 23, 2016