Company financial statements
Statutory financial statements
The sections Group financial statements and Company financial statements contain the statutory financial statements of Koninklijke Philips N.V. (the Company).
A description of the Company’s activities and group structure is included in the Consolidated Financial Statements.
Accounting policies applied
The financial statements of the Company included in this section are prepared in accordance with Part 9 of Book 2 of the Dutch Civil Code. Section 362 (8), Book 2, Dutch Civil Code, allows companies that apply IFRS as adopted by the European Union in their consolidated financial statements to use the same measurement principles in their company financial statements. The Company has prepared these Company financial statements using this provision.
The accounting policies are described in note (1) Significant accounting policies.
Investments in group companies are accounted for using the equity method in these Company financial statements.
Presentation of Company financial statements
The structure of the Company balance sheets is aligned with the Consolidated balance sheets in order to achieve optimal transparency between the Group financial statements and the Company financial statements. Consequently, the presentation of the Company balance sheets deviates from Dutch regulations.
The Company balance sheet has been prepared before the appropriation of result.
The Company statement of income has been prepared in accordance with Section 2:402 of the Dutch Civil Code, which allows a simplified Statement of income in the Company financial statements in the event that a comprehensive Statement of income is included in the consolidated Group financial statements.
For ‘Additional information’ within the meaning of Section 2:392 of the Dutch Civil Code, please refer to Independent auditor's report - Group, Independent auditor's report - Company, and Proposed distribution to shareholders.
Prior-period financial statements have been restated following the adoption of IAS 19R, which mainly relates to accounting for pensions.