Philips announces it will change the accounting treatment of remaining stake in LG Display
Amsterdam, The Netherlands – Royal Philips Electronics (NYSE:PHG, AEX:PHI) today announced that effective March 1, 2008, it will abandon equity accounting for its current shareholding in LG Display Co., Ltd. (NYSE: LPL, KRX: 034220), formerly known as LG.Philips LCD Co., Ltd. Instead, Philips will apply fair-value accounting for this participation effective as of the same date. This change follows the reduction of Philips’ stake in LG Display to 19.9% in October 2007, and the stepping down of Mr. Rudy Provoost, Executive Vice President and member of the Philips Board of Management, as Chairman of the Board of Directors of LG Display, effective today.
As per March 1, 2008, the difference between the book value of Philips’ interest in LG Display (approximately EUR 1,635 million) and the then-current fair value of this stake (which stands at EUR 2,300 million as of today) will be added to accumulated other comprehensive income as part of Philips’ group equity.
LG Display shareholders today approved the appointment of Mr. Paul Verhagen, Executive Vice President and Chief Financial Officer of Philips Consumer Lifestyle, as a member of the LG Display Board of Directors.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.