LeapFrog 2003 Annual Report Download - page 70

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REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
The Board of Directors
LeapFrog Enterprises, Inc.
We have audited the accompanying consolidated balance sheets of LeapFrog Enterprises, Inc. (the
“Company”), as of December 31, 2003 and 2002, and the related consolidated statements of income,
stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2003. Our
audits also included the financial statement schedule listed in the Index at Item 15(a). These financial statements
and schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on
these financial statements and schedule based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States. 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, the financial statements referred to above present fairly, in all material respects, the
consolidated financial position of LeapFrog Enterprises, Inc. at December 31, 2003 and 2002, and the
consolidated results of its operations and its 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. Also, in our opinion,
the related financial statement schedule, when considered in relation to the basic financial statements taken as a
whole, presents fairly in all material respects the information set forth therein.
As discussed in the Note 2 to the consolidated financial statements, in 2002 the Company changed its
method of accounting for goodwill and other indefinite lived intangible assets.
/s/ E
RNST
&Y
OUNG
LLP
San Francisco, California
February 4, 2004
F-2