LG 2011 Annual Report Download - page 42

To the Board of Directors and Shareholders of LG Electronics Inc.
We have audited the accompanying consolidated statements of financial position of LG Electronics Inc. and its subsidiaries
(collectively the “Group”) as of December 31, 2011 and 2010, and the related consolidated statements of operations,
comprehensive income, changes in equity and cash flows for the years then ended, expressed in Korean won. These financial
statements are the responsibility of the Group’s management. Our responsibility is the express an opinion on these financial
statements based on our audits. We did not audit the financial statements of certain consolidated subsidiaries, whose financial
statements represent 33% and 35% of the Group’s consolidated total assets as of December 31, 2011 and 2010, respectively,
and 57% and 56% of the Group’s consolidated total sales for the years then ended, respectively. These statements were audited
by other auditors whose reports have been furnished us and our opinion, insofar as it relates to the amounts included for those
subsidiaries, is based solely on the reports of 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 provide a reasonable
basis for our opinion.
In our opinion, based on our audits and the reports of the other auditors, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of the Group as of December 31, 2011 and 2010, and their financial
performance and cash flows for the years ended December 31, 2011 and 2010, in accordance with International Financial
Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”).
Auditing standards and their application in practice vary among countries. 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 is for use by those who are informed about Korean auditing standards and their application in practice.
Seoul, Korea
March 7, 2012
This report is effective as of March 7, 2012, 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 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.
Report of Independent Auditors
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75 Report of Independent Auditors
76 LG Electronics Consolidated Statements of Financial Position
78 LG Electronics Consolidated Statements of Operations
79 LG Electronics Consolidated Statements of Comprehensive Income
80 LG Electronics Consolidated Statements of Changes in Equity
81 LG Electronics Consolidated Statements of Cash Flows
FINANCIAL STATEMENTS