LG 2004 Annual Report Download - page 59

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LG ELECTRONICS ANNUAL REPORT 2004
058
059
As discussed in Notes 5 and 9 to the accompanying non-consolidated financial statements, as per the resolution of the
Board of Directors dated February 6, 2004, the Company purchased LG Card Co., Ltd. (LG Card)'s commercial papers with a face value
of 150,000 million as part of the fulfillment of LG Card's business normalization agreement with the creditor financial institutions. The
commercial papers of 38,124 million are scheduled to be converted to equity of LG Card and the remaining commercial papers
amounting to 111,876 million are scheduled to be collected within December 31, 2005. The Company recognized an impairment loss
of 41,437 million on the said commercial papers for the year ended December 31, 2004.
As discussed in Note 33 to the accompanying non-consolidated financial statements, on January 1, 2005 the Company
merged a part of PC division of LG IBM PC Co., Ltd., a joint venture with IBM Korea Inc. This merger is aimed to optimize business
efficiency, align operational strategies, and maximize profitability.
As discussed in Note 33 to the accompanying non-consolidated financial statements, on January 24, 2005, the Company
signed a memorandum of understanding with Nortel Networks Corporation of Canada for establishment of a joint venture to engage in
the field of communication equipment and networking solution.
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 28, 2005
*Samil PricewaterhouseCoopers is the Korean member firm of PricewaterhouseCoopers. PricewaterhouseCoopers refers to the network of member firms of PricewaterhouseCoopers International
Limited each of which is a separate and independent legal entity.
This report is effective as of January 28, 2005, 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.