Statutory ﬁnancial statements
The chapters Group 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 Significant accounting policies.
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 in order to achieve optimal transparency between the Group ﬁnancial statements and the Company ﬁnancial statements. Under this format, the order of presentation of assets and liabilities is based on a decreasing degree of liquidity.
The Company balance sheet has been prepared before the appropriation of result.
The Company statement of income has been prepared in accordance with Section 2:402 of the Dutch Civil Code, which allows a simpliﬁed Statement of income in the Company ﬁnancial statements in the event that a comprehensive Statement of income is included in the consolidated Group ﬁnancial statements.
For ‘Additional information’ within the meaning of Section 2:392 of the Dutch Civil Code, please refer to Auditor's report - Group, Auditor's report - Company, and Proposed distribution to shareholders.