ComEd 2002 Annual Report Download - page 78

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To the Shareholders and Board of Directors of Exelon Corporation:
In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income, cash flows and
changes in shareholders’ equity and comprehensive income present fairly, in all material respects, the financial position of Exelon
Corporation and Subsidiary Companies (Exelon) at December 31, 2002 and December 31, 2001, and the results of their operations and
their cash flows for each of the three years in the period ended December 31, 2002 in conformity with accounting principles generally
accepted in the United States of America.These financial statements are the responsibility of Exelon’s management;our responsibility
is to express an opinion on these financial statements based on our audits.We conducted our audits of these statements in accordance
with auditing standards generally accepted in the United States of America,which require that we plan and perform the audit 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,assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial statement presentation.We believe that our audits
provide a reasonable basis for our opinion.
As discussed in Note 2 to the consolidated financial statements,Exelon acquired Unicom Corporation on October 20,2000 in a business
combination accounted for under the purchase method of accounting. The results of Unicom Corporation are included in the consoli-
dated financial statements since the acquisition date.
As discussed in Note 4 to the consolidated financial statements, Exelon changed its method of accounting for nuclear outage costs
in 2000.
As discussed in Note 1 to the consolidated financial statements, Exelon changed its method of accounting for derivative instruments
and hedging activities effective January 1, 2001.
As discussed in Note 4 to the consolidated financial statements, Exelon changed its method of accounting for goodwill effective
January 1, 2002.
Chicago,Illinois
January 29, 2003, except for Note 23 for which the date is February 20,2003.
Report of Independent Accountants
exelon corporation and subsidiary companies
76