Et foreign currency translation adjustments relate to

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:: _ et foreign currency translation adjustments relate to the translation of foreign currency- - denominated balance sheets at year-end into $US. The negative amount implied that the $US has strengthened vis-a-vis the currency in which the financial statements of foreign subsidiaries are maintained with a consequent decline in the $US value of the net assets of those subsidiaries. The adjustment relating to postretirement benefit obligations relates to the financial statement effects of the changes in pension benefits or actuarial assumptions. We discuss the accounting for pension plans and other postretirement benefits in Module 10. Proceeds from sales and repurchases of the stock of noncontrolling shareholders as well as dividends paid to noncontrolling shareholders are reflected in the noncontrolling equity account. One final point: the financial press sometimes refers to a measure called book value per .This is the net book value of the company that is available to common shareholders, defined stockholders' equity of the parent's shareholders less preferred stock (and preferred additional - in capital) divided by the number of common shares outstanding (issued common shares less ury shares). Aon's book value per share of its common stock at the end of 2010 is computed 8,251 million/(385.9 million shares - 53.6 million shares) = $24.83 book value per share. In trast, Aon's market price per share ranged from $36.81 to $42.32 in the 4th quarter of 2010. UITY CARVE-OUTS AND CONVERTIBLES crJXlratedivestitures, or equity carve-outs, are increasingly common as companies seek to aug- t shareholder value through partial or total divestiture of operating units. Generally, equity ·e-outs are motivated by the notion that consolidated financial statements often obscure the ormance of individual business units, thus complicating their evaluation by outsiders. Corpo- managers are concerned that this difficulty in assessing the performance of individual business limits their ability to reach full valuation. Shareholder value is, therefore, not maximized. In nse, conglomerates have divested subsidiaries so that the market can individually price them. II-Ofts - itycarve-outs take many forms. The first and simplest form of divestiture is the outright sale of siness unit, called a sell-off. In this case, the company sells its equity interest to an unrelated .The sale is accounted for just like the sale of any other asset. Specifically, any excess (deficit) -cash received over the book value of the business unit sold is recorded as a gain (loss) on the sale. To illustrate, in 2010, Conoco Phillips sold its Syncrude Canada Ltd. business for $4.6 ion and recorded a pretax gain on that sale of $2.9 billion as disclosed in the following excerpt - ill its 2010 annual report: On June 25, 2010, we sold our 9.03 percent interest in the Syncrude Canada Ltd. joint venture for $4.6 billion. The $2.9 billion before-tax gain was included in the "Gain on dispositions" line of our consolidated statement of operations. The cash proceeds were included in the "Proceeds from asset dispositions"
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