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Disclosures: Noncontrolling interests, foreign currency 10K

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Please solve this problem with 10k.
http://ir.corporate.discovery.com/phoenix.zhtml?c=222412&p=irol-irhome

1. Calculate the percentage of consolidated net income that is assigned to any non-controlling interests.
2. Calculate the percentage claim on assets that the non-controlling interest has in the company.
3. Identify the cumulative translation adjustment recorded on the consolidated financial statements.
4. Explain how foreign currency fluctuations have affected the company's results of operations. Include specific evidence to support your answer.

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Solution Preview

1. Calculate the percentage of consolidated net income that is assigned to any non-controlling interests.

2/945 = .0021164 or .2% See statement attached for amounts circled (page down)

2. Calculate the percentage claim on assets that the non-controlling interest has in the company.

$2 / $12,930 = .0001546 or .02% See statement attached for amounts circled (page down)

3. Identify the cumulative ...

Solution Summary

Attached are screen shots of the relevant pages with the amounts circled for you and commentary to respond to the questions.

$2.19
See Also This Related BrainMass Solution

Pending litigation, special purpose entities

3. HP describes is pending litigation in note 17 (pp 136-143). Under what conditions can HP avoid recognition of these pending liabilities in its financial statements?

4. In its statement of stockholders' equity (p. 88), HP reports a cumulative translation adjustment (CTA) of $22 million, up from $2 million in 2003.
a. Assuming that the company's subsidiaries are solvent, how does a positive CTA arise?
b. How has this cumulative equity adjustment affected reported profit?
c. What does the increase in the CTA from 2003 imply about the relative value of the $US vis-à-vis other world currencies?

5. In its summary of the financial statement impact of recent accounting pronouncements (p 97), HP indicates that FIN 46(R) has not had a material impact.
a. Briefly discuss how FIN 46(R) has affected the accounting for special purpose entities (SPEs).
b. Briefly discuss the financial statement implications of the increasing use of qualifying special purpose entities (QSPEs).

The attached has study questions around FIN 46(R) and SPEs. Please help me understand what the impact is as it related to HPs 10k.

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