LG 2003 Annual Report Download - page 50

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50
Report of Independent Accountants
For the years ended December 31, 2003 and 2002
As discussed in Note 9 to the accompanying non-consolidated financial statements, the Company invested its
27,841 shares (40.8%) of LG.Philips Displays Holding B.V. into LG Electronics Wales Ltd., a subsidiary located in
the U.K., at the value of ￦500,821 million (GBP238 million).
As discussed in Note 2 to the accompanying non-consolidated financial statements, the Company has adopted
the newly established Statements of Korean Financial Accounting Standards (“SKFAS”) effective as of January 1,
2003. The effect of this adoption of new SKFAS was to decrease sales and cost of sales for the year ended
December 31, 2003 by ￦1,244,262 million each.
As discussed in Note 33 to the accompanying non-consolidated financial statements, upon a resolution of the
Board of Directors in February 2004, the Company is scheduled to acquire commercial papers (having a face value
of ￦100,000 million at an annual interest rate of 7.5%, and maturing at the end of three months from the issuance
date) of LG Card Co., Ltd., as part of the fulfillment of LG Card Co., Ltd.’s business normalization agreement with
the creditor financial institutions.
Accounting principles and auditing standards and their application in practice vary among countries. The
accompanying non-consolidated financial statements are not intended to present the financial position, results of
operations and cash flows in conformity with accounting principles and practices generally accepted in countries
and jurisdictions other than the Republic of Korea. In addition, the procedures and practices used in the Republic of
Korea to audit such financial statements may differ from those generally accepted and applied in other countries.
Accordingly, this report and the accompanying non-consolidated financial statements are for use by those who are
knowledgeable about Korean accounting principles or auditing standards and their application in practice.
Seoul, Korea
January 30, 2004
This report is effective as of January 30, 2004, the audit report date. Certain subsequent events or circumstances, which
may occur between the audit report date and the time of reading this report, could have a material impact on the
accompanying non-consolidated financial statements and notes thereto.
Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may
have to be revised to reflect the impact of such subsequent events or circumstances, if any.
*Samil PricewaterhouseCoopers is the Korean member firm of the PricewaterhouseCoopers. PricewaterhouseCoopers refers to the network of member
firms of PricewaterhouseCoopers international Limited, each of which is a separate and independent legal entity.