IntroductionPhilips moved to International Financial Reporting Standards (IFRS) as its sole accounting standard from January 1, 2009 onwards. The use of US GAAP has been discontinued per the same date. This chapter of the Annual Report contains the audited consolidated financial statements including the notes thereon that have been prepared in accordance with IFRS as adopted 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 International Financial Reporting Interpretations Committee (IFRIC) effective year-end 2009 have been adopted by the EU, except that the EU carved out certain hedge accounting provisions of IAS 39. The Company does not utilize this carve-out permitted by the EU. Consequently, the accounting policies applied by the Company also comply fully with IFRS as issued by the IASB. Together with the chapter Company financial statements, this chapter contains the statutory financial statements of the Company. The following chapters and sections of this Annual Report:
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 2009 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 chapters also provide information on the business outlook, investments, financing, personnel and research and development activities. The Statement of income 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 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 on the Group financial statements, Auditor's report - Company on the Company financial statements, Proposed distribution to shareholders, and note (34) Subsequent events for subsequent events. Please refer to Qualifier 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 our knowledge, the Group 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 22, 2010 | ||
