LG 2009 Annual Report Download - page 47

This report is effective as of February 25, 2010, 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 PricewaterhouseCooper is the Korean network firm of PricewaterhouseCoopers International Limited (PwCIL). "PricewaterhouseCoopers" and "PwC" refer to the
network of member of PwCIL. Each member firm is a separate legal entity and does not act as an agent of PwCIL or any other member firm.
REPORT OF INDEPENDENT AUDITORS
FINANCIAL
STATEMENTS
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF LG ELECTRONICS INC.
We have audited the accompanying non-consolidated statements of financial position of LG Electronics Inc. (the “Company”) as of December
31, 2009 and 2008, and the related non-consolidated statements of income, appropriations of retained earnings, changes in shareholders’
equity and cash flows for the years then ended, expressed in Korean won. These financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on these financial statements based on our audits. We did not audit the financial
statements of certain subsidiaries, the investments in which are reflected in the accompanying non-consolidated financial statements using
the equity method of accounting. The investments in those subsidiaries represent 35.1% and 39.9% of the Company’s total assets as of December
31, 2009 and 2008, respectively. These financial statements were audited by other auditors whose reports have been furnished to us and our
opinion, insofar as it relates to the amounts included for the subsidiaries, is based solely on the reports of the other auditors.
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 audits 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 and the reports of the other auditors provide a reasonable basis for our opinion.
In our opinion, based on our audits and the reports of the other auditors, the non-consolidated financial statements referred to above present
fairly, in all material respects, the financial position of LG Electronics Inc. as of December 31, 2009 and 2008, and the results of its operations,
the changes in its retained earnings, the changes in its shareholders’ equity and cash flows for the years then ended in conformity with
accounting principles generally accepted in the Republic of Korea.
As discussed in Note 36 to the accompanying non-consolidated financial statements, on January 1, 2010, the Company adopted the International
Financial Reporting Standards as adopted by the Republic of Korea (“K-IFRS”), which shall be adopted by all listed companies in Korea by
the fiscal year 2011.
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, changes in shareholders’ equity 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 financial statements are for use by those who are
informed about Korean accounting principles or auditing standards and their application in practice.
Seoul, Korea
February 25, 2010
81 Report of Independent Auditors
82 Non-Consolidated Statements of Financial Position
84 Non-Consolidated Statements of Income
85 Non-Consolidated Statements of Appropriations of Retained Earnings
86 Non-Consolidated Statements of Changes in Shareholders’ Equity
87 Non-Consolidated Statements of Cash Flows
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