Kia 2002 Annual Report Download - page 22

2002 KIA MO TO RS AN N UAL REPORT
4041
Report of Independent Public Accountants
To the Shareholders and Board of Directors of
Kia Motors Corporation:
We have audited the accompanying non-consolidated balance sheets of Kia Motors Corporation as of
December 31, 2002 and 2001, and the related non-consolidated statements of income, appropriations of
retained earnings and cash flows for the years then ended, all expressed in Korean won. These financial
statements are the responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the Republic of
Korea. 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 statements 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
financial position of Kia Motors Corporation as of December 31, 2002 and 2001, and the results of its
operations, changes in its retained earnings and its cash flows for the years then ended in conformity
with financial accounting standards in the Republic of Korea (see Note 2).
The translated amounts in the accompanying financial statements have been translated into U.S. dollars,
solely for the convenience of the reader, on the basis set forth in Note 2.
English Translation of a Report Originally Issued in Korean
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
As explained in Note 2, the Company adopted Statement of Korea Accounting Standards (SKAS) No. 6
- Events Occurring after the Balance Sheet Date and SKAS No. 7 - Capitalization of Financing Costs.
These statements are effective for fiscal years subsequent to December 31, 2002; however, earlier appli-
cation is permitted. In addition, the Company changed its estimation of accrued warranty partially. As a
result of these accounting changes, in 2002, the Company’s net income increased by 29,640 million
(24,692 thousand) and earnings per share increased by 80(0.07), in comparison with previous
accounting method.
Accounting principles and auditing standards and their application in practice vary among countries. The
accompanying financial statements are not intended to present the financial position, results of opera-
tions and cash flows in accordance with accounting principles and practices generally accepted in coun-
tries and jurisdictions other than the Republic of Korea. In addition, the procedures and practices uti-
lized in the Republic of Korea to audit such financial statements may differ from those generally accept-
ed and applied in other countries. Accordingly, this report and the accompanying financial statements
are intended for use by those knowledgeable about Korean accounting procedures and auditing standards
and their application in practice.
This report is effective as of January 29, 2003, the auditors' report date. Certain subsequent events or cir-
cumstances may have occurred between the auditors' report date and the time the auditors' report is read.
Such events and circumstances could significantly affect the accompanying financial statements and
may result in modifications to the auditor's report.
Seoul, Korea
January 29, 2003
Notice to Readers