LG 2003 Annual Report Download - page 58

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58
Notes to Non-Consolidated Financial Statements
For the years ended December 31, 2003 and 2002
1. The Company
As discussed in Note 30, LG Electronics Inc. (the “Company”) was spun off from LG Electronics Investment Ltd.
(formerly LG Electronics Inc.) on April 1, 2002, to engage in the manufacture and sale of electronic, and information
and communication products.
As of December 31, 2003, the Company operates manufacturing facilities in Kuro, Pyeongtaek, Chongju, Gumi,
and Changwon in the Republic of Korea.
As of December 31, 2003, the Company has outstanding capital stock amounting to ￦783,961 million,
including non-voting preferred stock. The Company’s stock was listed on the Korean Stock Exchange on April 22,
2002, and its depositary receipts (“DRs”) were listed on the London Stock Exchange in September 2002.
As of December 31, 2003, affiliated companies comprised of the LG Group, including LG Corp., and key
management personnel, including the family members of such individuals, own a total of 32.1% of the Company’s
common stock, and financial institutions, foreign investors and others own the rest of the Company’s common
stock.
2. Summary of Significant Accounting Policies
The non-consolidated financial statements as of December 31, 2002 and for the nine-month period from April 1,
2002 (spin-off date) to December 31, 2002, presented herein for comparative purposes, comply with Financial
Accounting Standards of the Republic of Korea effective as of December 31, 2002, except for the early adoption of
Statements of Korean Financial Accounting Standards (“SKFAS”) No. 6, Subsequent Events. The significant
accounting policies followed by the Company in the preparation of its non-consolidated financial statements are
summarized below.
The financial statements of the Company will be approved by the Board of Directors on February 19, 2004.
Basis of Financial Statement Presentation
The Company maintains its accounting records in Korean Won and prepares statutory financial statements in
the Korean language in conformity with accounting principles generally accepted in the Republic of Korea. Certain
accounting principles applied by the Company that conform with financial accounting standards and accounting
principles in the Republic of Korea may not conform with generally accepted accounting principles in other
countries. Accordingly, these financial statements are intended for use by those who are informed about Korean
accounting principles and practices. The accompanying non-consolidated financial statements have been
condensed, restructured and translated into English from the Korean language non-consolidated financial
statements. Certain information attached to the Korean language financial statements, but not required for a fair
presentation of the Company’s financial position, results of operations, or cash flows, is not presented in the
accompanying financial statements.