Samsung 1999 Annual Report Download - page 49

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The accompanying financial statements have been extracted
from the Company’s Korean language financial statements that
were prepared using accounting principles, procedures and
reporting practices generally accepted in the Republic of
Korea. These standards vary from international accounting
standards and the accounting principles generally accepted in
the country of the reader. The financial statements have been
translated from Korean into English, and have been formatted
in a manner different from the presentation under Korean
financial statement practices. Certain supplementary
information included in the Korean language statutory 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. Accordingly, the accompanying financial
statements are not intended to present the financial position
and results of operations and cash flows in accordance with
accounting principles and practices generally accepted in
countries and jurisdictions other than the Republic of Korea.
The preparation of financial statements requires management
to make estimates and assumptions that affect amounts
reported therein. Due to the inherent uncertainty involved in
making estimates, actual results reported in future periods
may differ from those estimates.
Cumulative Effect of Significant Changes in Financial Accounting Standards -
Effective January 1, 1999, the financial accounting policies of the Company have been significantly changed in accordance with the
changes of accounting principles generally accepted in Korea. The cumulative effects on assets and liabilities arising in accordance
with the adoption of the revised standards were added to or deducted from the beginning balance of retained earnings, capital
surplus or capital adjustments pursuant to the addendum to the revised financial accounting standards.
A summary of the cumulative effects and variation of net income from the changes in financial accounting standards is as follows:
Millions of Korean Won
Beginning Capital Capital
Retained Earnings Surplus Net Income Adjustment
Equity method valuation of investments (2,476,073) - 305,855 261,434
Adoption of deferred income taxes 741,832 537,734 (199,039)
Recognition of derivative instruments (22,183) - 12,876 (3,794)
Valuation of assets and liabilities at present
value, and others 11,946 (230) (6,587) -
(1,744,478) 537,504 113,105 257,640
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