LG 2001 Annual Report Download - page 44

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SAMIL ACCOUNTING CORPORATION
»44
LG Electronics Inc. The
43
rd Annual Report
Report of Independent Accountants
To the Board of Directors and Shareholders of
LG Electronics Inc.
We have audited the accompanying non-consolidated balance sheets of LG Electronics Inc. (the
“Company”) as of December 31, 2001 and 2000, and the related non-consolidated statements of income,
appropriations of retained earnings and cash flows for the years then ended, expressed in Korean Won.
These financial statements are the responsibility of the Companys 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 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
financial position of LG Electronics Inc. as of December 31, 2001 and 2000, and the results of its
operations, the changes in its retained earnings and its cash flows for the years then ended, in conformity
with financial accounting standards generally accepted in the Republic of Korea.
As discussed in Note 22 to the accompanying financial statements, for the years ended December 31,
2001 and 2000, the Company entered into various transactions with affiliated companies such as LG
Electronics U.S.A. Inc., including sales of 7,303,044 million and 7,028,871 million, respectively, and
purchases of 1,544,047 million and 1,504,114 million, respectively. As of December 31, 2001 and
2000, related accounts receivable approximate 792,994 million and 806,155 million, respectively,
and related accounts payable approximate 533,769 million and 425,381 million, respectively.
As discussed in Note 27 to the accompanying financial statements, upon a resolution of the board of
directors on November 15, 2001 and upon a resolution of shareholders on December 28, 2001, the
Company is scheduled to carve out its electronics and information & communications businesses and
establish a new company, and convert its remaining business into a holding company on April 1, 2002.
Accordingly, the Company will be split into two companies, a divesting company, tentatively named LG
Electronics Investment Inc., to engage in the operation of investment in subsidiaries and affiliates which are
Kukje Center Building 21st Flr. 191 Hangangro 2ga, Yongsanku, Seoul 140-702, KOREA(Yongsan P.O Box 266, 140-600)