Annual Report 1998 - Omron

INDEPENDENT AUDITORS’ REPORT
To the Board of Directors and Shareholders of OMRON Corporation
We have audited the accompanying consolidated balance sheets of OMRON Corporation and subsidiaries as of
March 31, 1998 and 1997, and the related consolidated statements of income, shareholders’ equity and cash flows
for each of the three years in the period ended March 31, 1998, all expressed in Japanese yen. 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 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.
OMRON Corporation and subsidiaries have not adopted the recognition and measurement principles prescribed
in Statement of Financial Accounting Standards (“SFAS”) No. 115 in accounting for certain investments in debt and
equity securities. The effects on the consolidated financial statements of not adopting SFAS No. 115 are summarized
in Note 4 to the consolidated financial statements.
Certain information required by SFAS No. 14 has not been presented in the accompanying consolidated financial
statements. In our opinion, presentation of various segment information regarding operations is required for a complete
presentation of the Company’s consolidated financial statements in accordance with accounting principles generally
accepted in the United States.
In our opinion, except for the effects of the departure from SFAS No. 115 and the omission of segment information
as discussed in the preceding paragraphs, the consolidated financial statements referred to above present fairly, in all
material respects, the financial position of OMRON Corporation and subsidiaries as of March 31, 1998 and 1997, and
the results of their operations and their cash flows for each of the three years in the period ended March 31, 1998 in
conformity with accounting principles generally accepted in the United States.
Our audits also comprehended the translation of Japanese yen amounts into United States dollar amounts and, in
our opinion, such translation has been made in conformity with the basis stated in Note 2 to the consolidated financial
statements. Such United States dollar amounts are presented solely for convenience.
Osaka, Japan
May 18, 1998
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