Coca Cola 2004 Annual Report Download - page 75

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Coca-Cola Company and Subsidiaries
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2005. Our proportionate share of the stock-based compensation expense resulting from the adoption of SFAS
No. 123(R) by our equity investees will be recognized as a reduction to equity income.
In December 2004, the FASB issued SFAS No. 153, ‘‘Exchanges of Nonmonetary Assets, an amendment of
APB Opinion No. 29.’’ SFAS No. 153 is based on the principle that exchanges of nonmonetary assets should be
measured based on the fair value of the assets exchanged. APB Opinion No. 29, ‘‘Accounting for Nonmonetary
Transactions,’’ provided an exception to its basic measurement principle (fair value) for exchanges of similar
productive assets. Under APB Opinion No. 29, an exchange of a productive asset for a similar productive asset
was based on the recorded amount of the asset relinquished. SFAS No. 153 eliminates this exception and
replaces it with an exception of exchanges of nonmonetary assets that do not have commercial substance. SFAS
No. 153 is effective for our Company as of July 1, 2005. The Company will apply the requirements of SFAS
No. 153 prospectively.
NOTE 2: BOTTLING INVESTMENTS
Coca-Cola Enterprises Inc.
Coca-Cola Enterprises Inc. (‘‘CCE’’) is a marketer, producer and distributor of bottle and can nonalcoholic
beverages, operating in eight countries. On December 31, 2004, our Company owned approximately 36 percent
of the outstanding common stock of CCE. We account for our investment by the equity method of accounting
and, therefore, our operating results include our proportionate share of income (loss) resulting from our
investment in CCE. As of December 31, 2004, our proportionate share of the net assets of CCE exceeded our
investment by approximately $366 million. This difference is not amortized.
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