LG 2004 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2004 LG annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 129

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129

LG Electronics Inc.
Notes to Non-Consolidated Financial Statements
December 31, 2004 and 2003
LG ELECTRONICS ANNUAL REPORT 2004
066
067
1. The Company
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.
Former LG Electronics Inc. was incorporated in February 1959
under the Commercial Code of the Republic of Korea to
manufacture and sell electronics, and information and
communication products, and had its shares listed on the
Korea Stock Exchange in April 1970.
As of December 31, 2004, the Company operates
manufacturing facilities mainly in Kuro, Pyeongtaek, Chongju,
Gumi and Changwon in the Republic of Korea.
As of December 31, 2004, the Company has outstanding
capital stock amounting to 783,961 million, including non-
voting preferred stock. The Company’s stock was relisted on
the Korean Stock Exchange on April 22, 2002, and its
depositary receipts (“DRs”) were relisted on the London Stock
Exchange in September 2002.
As of December 31, 2004, LG Corp. and its related
parties own 32.1% of the Company’s common stock, while
financial institutions, foreign investors and others own the rest
of the Company’s common stock.
2. Summary of Significant Accounting Policies
The significant accounting policies followed by the
Company in the preparation of its non-consolidated financial
statements are summarized below.
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 non-consolidated 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 non-consolidated financial statements.
Accounting Estimates
The preparation of the financial statements requires
management to make estimates and assumptions that affect
amounts reported therein. Although these estimates are based
on management’s best knowledge of current events and
actions that the Company may undertake in the future, actual
results may differ from those estimates.