Dominion Power 2002 Annual Report Download - page 99

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To the Shareholders and Board of Directors of
Dominion Resources, Inc.
Richmond, Virginia
We have audited the accompanying consolidated balance sheets
of Dominion Resources, Inc. and subsidiaries as of December
31, 2002 and 2001, and the related consolidated statements
of income, comprehensive income, common shareholders’
equity, and cash flows for each of the three years in the period
ended December 31, 2002. These financial statements are the
responsibility of the Company’s management. Our responsibil-
ity is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with auditing stan-
dards generally accepted in the United States of America. Those
standards 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. 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, such consolidated financial statements
present fairly, in all material respects, the financial position of
Dominion Resources, Inc. and subsidiaries as of December 31,
2002 and 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.
As discussed in Note 18 to the consolidated financial state-
ments, effective January 1, 2002, the Company adopted State-
ment of Financial Accounting Standards No. 142, Goodwill
and Other Intangible Assets. As discussed in Note 15 to the
consolidated financial statements, effective January 1, 2001,
the Company adopted Statement of Financial Accounting
Standards No. 133, Accounting for Derivative Instruments and
Hedging Activities, as amended. Also, as discussed in Note 3 to
the consolidated financial statements, the Company changed its
method of accounting used to develop the market-related value
of pension plan assets in 2000.
Richmond, Virginia
January 21, 2003
(February 19, 2003 as to the last two paragraphs of the Lease
Commitments section of Note 27 and February 21, 2003 as to
the last three paragraphs of Note 30)
Independent Auditors’ Report
97
Dominion ’02 Annual Report