Dominion Power 2003 Annual Report Download - page 56

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54.Dominion 2003
Independent Auditors’ Report
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,
2003 and 2002, and the related consolidated statements of
income, common shareholders’ equity and comprehensive
income, and cash flows for each of the three years in the period
ended December 31, 2003. 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 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, 2003 and
2002, and the results of their operations and their cash flows for
each of the three years in the period ended December 31, 2003,
in conformity with accounting principles generally accepted in
the United States of America.
As discussed in Note 3 to the consolidated financial state-
ments, the Company changed its methods of accounting to
adopt new accounting standards for: asset retirement obligations,
contracts involved in energy trading, derivative contracts not
held for trading purposes, derivative contracts with a price
adjustment feature, the consolidation of variable interest entities,
and guarantees in 2003; goodwill and intangible assets in
2002; and derivative contracts and hedging activities in 2001.
Richmond, Virginia
February 26, 2004