Canon 2002 Annual Report Download - page 77

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The Board of Directors and Stockholders
Canon Inc.:
We have audited the accompanying consolidated balance sheets (expressed in yen) of Canon Inc. and subsidiaries as
of December 31, 2002 and 2001, and the related consolidated statements of income, stockholders’ equity and cash
flows for each of the years in the three-year period ended December 31, 2002. These consolidated financial
statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America.
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.
The segment information required to be disclosed in financial statements under accounting principles generally
accepted in the United States of America is not presented in the accompanying consolidated financial statements.
Foreign issuers are currently exempted from such disclosure requirement in Securities Exchange Act filings with the
United States Securities and Exchange Commission.
In our opinion, except for the omission of the segment information as discussed in the third paragraph of this
report, the consolidated financial statements referred to above present fairly, in all material respects, the financial
position of Canon Inc. and subsidiaries at December 31, 2002 and 2001, and the results of their operations and their
cash flows for each of the years in the three-year period ended December 31, 2002, in conformity with accounting
principles generally accepted in the United States of America.
As discussed in note 1 of the notes to the consolidated financial statements, Canon Inc. and subsidiaries changed
their method of accounting for derivative instruments and hedging activities in the year beginning January 1, 2001.
The accompanying consolidated financial statements have been translated into United States dollars solely for the
convenience of the reader. We have recomputed the translation and, in our opinion, the consolidated financial
statements expressed in yen have been translated into United States dollars on the basis set forth in note 2 of the
notes to consolidated financial statements.
Tokyo, Japan
January 28, 2003
INDEPENDENT AUDITORS’ REPORT
75