Hasbro 2006 Annual Report Download - page 49

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Item 8. Financial Statements and Supplementary Data
Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders
Hasbro, Inc.:
We have audited the accompanying consolidated balance sheets of Hasbro, Inc. and subsidiaries as of
December 31, 2006 and December 25, 2005, and the related consolidated statements of operations, sharehold-
ers’ equity, and cash flows for each of the fiscal years in the three-year period ended December 31, 2006.
These consolidated financial statements are the responsibility of the Company’s management. Our responsibil-
ity is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (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 consolidated financial statements referred to above present fairly, in all material
respects, the financial position of Hasbro, Inc. and subsidiaries as of December 31, 2006 and December 25,
2005, and the results of their operations and their cash flows for each of the fiscal years in the three-year
period ended December 31, 2006, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States), the effectiveness of Hasbro, Inc.’s internal control over financial reporting as of
December 31, 2006, based on criteria established in Internal Control — Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated
February 27, 2007, expressed an unqualified opinion on management’s assessment of, and the effective
operation of, internal control over financial reporting.
As discussed in note 10 to the consolidated financial statements, during the first quarter of 2006, the
Company adopted Statement of Financial Accounting Standards No. 123(R), “Share-Based Payments”. As
discussed in note 11 to the consolidated financial statements, during the fourth quarter of 2006, the Company
adopted Statement of Financial Accounting Standards No. 158, “Employers’ Accounting for Defined Benefit
Pension and Other Postretirement Plans”.
Providence, Rhode Island
February 27, 2007
38