Hasbro 2007 Annual Report Download - page 46

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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 30, 2007 and December 31, 2006, 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 30, 2007.
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 30, 2007 and December 31,
2006, and the results of their operations and their cash flows for each of the fiscal years in the three-year
period ended December 30, 2007, in conformity with U.S. generally accepted accounting principles.
As discussed in note 8 to the consolidated financial statements, on January 1, 2007 the Company adopted
Financial Accounting Standards Board Interpretation No. 48, “Accounting for Uncertainty in Income Taxes.”
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 Payment”. 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”.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States), Hasbro, Inc.’s internal control over financial reporting as of December 30, 2007, 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 26, 2008, expressed an
unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.
Providence, Rhode Island
February 26, 2008
38