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Abbott Laboratories reports its 50% joint venture investment in TAP Pharmaceutical Products Inc. using the equity method of accounting in its 2007 10-K. The Abbott

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Abbott Laboratories reports its 50% joint venture investment in TAP Pharmaceutical Products Inc. using the equity method of accounting in its 2007 10-K. The Abbott balance sheet reports an investment balance of exist159 million. TAP has total assets of exist1, 354.2 million, liabilities of exist1, 036.7 million, and equity of exist317.5 million. Abbott's investment balance is, thus, equal to its 50% interest in TAP's equity (exist317.5 million times 50% = exist158.75 million, rounded to exist159 million). What adjustment(s) might we consider to Abbott's balance sheet before we forecast its financial statements? What risks might Abbott Laboratories face that are not revealed on the face of its balance sheet? Abbott Laboratories reports its 50% joint venture investment in TAP Pharmaceutical Products Inc. using the equity method of accounting in its 2007 10-K. The Abbott balance sheet reports an investment balance of exist159 million. TAP has total assets of exist1, 354.2 million, liabilities of exist1, 036.7 million, and equity of exist317.5 million. Abbott's investment balance is, thus, equal to its 50% interest in TAP's equity (exist317.5 million times 50% = exist158.75 million, rounded to exist159 million). What adjustment(s) might we consider to Abbott's balance sheet before we forecast its financial statements? What risks might Abbott Laboratories face that are not revealed on the face of its balance sheet

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