Pfizer 2007 Annual Report Download - page 39

The Board of Directors and Shareholders of Pfizer Inc:
We have audited the accompanying consolidated balance sheets
of Pfizer Inc and Subsidiary Companies as of December 31, 2007
and 2006, and the related consolidated statements of income,
shareholders’ equity, and cash flows for each of the years in the
three-year period ended December 31, 2007. These consolidated
financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.
We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (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 consolidated financial statements referred to
above present fairly, in all material respects, the financial position
of Pfizer Inc and Subsidiary Companies as of December 31, 2007
and 2006, and the results of their operations and their cash
flows for each of the years in the three-year period ended
December 31, 2007, in conformity with U.S. generally accepted
accounting principles.
We also have audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States), the
effectiveness of Pfizer Inc and Subsidiary Companies’ internal
control over financial reporting as of December 31, 2007, based
on criteria established in Internal Control—Integrated Framework
issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO), and our report dated February 29,
2008 expressed an unqualified opinion on the effective operation
of the Company’s internal control over financial reporting.
As discussed in the Notes to the Consolidated Financial
Statements—Note 1D. Significant Accounting Policies: New
Accounting Standards, effective January 1, 2007, Pfizer Inc adopted
the provisions of Financial Accounting Standards Board
Interpretation (FASB) No. 48, Accounting for Uncertainty in
Income Taxes, an interpretation of SFAS 109, Accounting for
Income Taxes, and supplemented by FASB Financial Staff Position
FIN 48-1, Definition of Settlement in FASB Interpretation No. 48,
issued May 2, 2007.
As discussed in the Notes to the Consolidated Financial
Statements—Note 1D. Significant Accounting Policies: New
Accounting Standards, effective January 1, 2006, Pfizer Inc adopted
the provisions of Statement of Financial Accounting Standards No.
123R, Share-Based Payment.
As discussed in the Notes to the Consolidated Financial
Statements—Note 1D. Significant Accounting Policies: New
Accounting Standards, effective December 31, 2006, Pfizer Inc
adopted the provisions of Statement of Financial Accounting
Standards No. 158, Employers’ Accounting for Defined Benefit
Pension and Other Postretirement Plans (an amendment of
Financial Accounting Standards Board Statements No. 87, 88,
106 and 132R).
As discussed in the Notes to the Consolidated Financial
Statements—Note 1D. Significant Accounting Policies: New
Accounting Standards, effective December 31, 2005, Pfizer Inc
adopted the provisions of Financial Accounting Standards Board
(FASB) Interpretation No. 47 (FIN 47), Accounting for Conditional
Asset Retirement Obligations (an interpretation of FASB Statement
No. 143).
KPMG LLP
New York, New York
February 29, 2008
Report of Independent Registered Public Accounting Firm on the
Consolidated Financial Statements
2007 Financial Report 37