Introduction

Statutory financial statements Accounting policies applied

Presentation of Company financial ... Additional information

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.

Additional information

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.