Amazon.com 2003 Annual Report Download - page 50

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REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
The Board of Directors and Stockholders
Amazon.com, Inc.
We have audited the accompanying consolidated balance sheets of Amazon.com, Inc. as of December 31,
2003 and 2002, and the related consolidated statements of operations, stockholders’ deficit and cash flows for
each of the three years in the period ended December 31, 2003. Our audits also included the financial statement
schedule listed at Item 15(a)(2). These financial statements and schedule are the responsibility of the Company’s
management. Our responsibility is to express an opinion on these financial statements and schedule based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
consolidated financial position of Amazon.com, Inc. at December 31, 2003 and 2002, and the consolidated
results of its operations and its cash flows for each of the three years in the period ended December 31, 2003, in
conformity with accounting principles generally accepted in the United States. Also, in our opinion, the related
financial statement schedule, when considered in relation to the basic financial statements taken as a whole,
presents fairly in all material respects the information set forth therein.
As discussed in Note 1 to the consolidated financial statements, the Company adopted the full provisions of
Statement of Financial Accounting Standards No. 141, Business Combinations, and No. 142, Goodwill and Other
Intangible Assets, effective January 1, 2002. The Company also adopted Statement of Financial Accounting
Standards No. 133, Accounting for Derivative Instruments and Hedging Activities, effective January 1, 2001. In
addition, as discussed in Note 1 to the consolidated financial statements, effective January 1, 2002, the Company
prospectively changed its inventory costing method to the first-in first-out method of accounting.
/s/ E
RNST
&Y
OUNG
LLP
Seattle, Washington
January 23, 2004,
except for the last two paragraphs of Note 6 and Note 17,
as to which the date is January 27, 2004
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