Stora Enso is a Finnish pulp and paper manufacturing company. It discloses in its 1999 consolidated Annual Report, the following items: Excerpted from the Consolidated balance sheet Assets mill. 1999 1998 () Shares, associated companies 165.5 334.1 Shares, other companies 280.4 128.8 In the notes to its financial statements, the Stora Enso provides explanations relating to these two items: Excerpts from the notes Note 12 Associated companies mill. 1999 1998 Historical cost Jan. 1 289.9 273.1 Translation difference 1.8 -14.8 Additions 20.2 42.3 Disposals -36.8 -1.2 Transfers to other companies -141.9 -9.4 Historical cost Dec. 31 133.2 290.0 Equity adjustments to investments in associated companies Jan. 1 44.2 44.8 Equity earnings in associated companies 9.7 10.0 Translation difference -27.3 -0.1 Dividends received during the year -3.1 -7.2 Taxes -2.4 -2.6 Disposals and other changes 11.2 -0.7 Equity adjustments Dec. 31 32.3 44.2 Carrying value of investments in associated companies on Dec. 31 165.5 334.2 Note 14 Shares in other companies mill. 1999 1998 Acquisition cost Jan. 1 128.8 57 Translation differences 0.5 -1.1 Additions 13.4 68.8 Disposals -7.1 -4.8 Write-downs 3 -0.5 Transfers from associated companies 141.9 9.4 Carrying amount Dec. 31 280.4 128.8 In addition, the company explains in the notes that associated companies (voting rights between 20% and 50%) are consolidated using the equity method and the income statements of foreign subsidiaries are translated into Euros using the average rate for the accounting period. The balance sheets of foreign subsidiaries are translated using the rate prevailing on the balance sheet day. Pechiney, a French group operating worldwide in aluminum and packaging materials, discloses in its 1999 Annual Report the following note: Note 7 Investments in Equity Affiliates (in millions of ) 1999 1998 1997 Beginning of period 334 337 354 Changes: - Equity in net income of Quensland Alumina Limited, Pechiney Reynolds Qubec Inc. and in partnerships 7 7 10 - Equity in net income of other affiliates 41 10 20 - Dividends received from equity affiliates (12) (12) (20) - New investments or share capital increases - - 42 - Divestments and reduction in ownership percentage (73) - (71) - Change from equity method to consolidation - - (9) - Change from consolidation to equity method 457 - 7 - Translation adjustment 22 (10) 5 - Other 1 2 (1) End of period 777 334 337 Required A) Using the Stora Enso data Associated companies: explain the computation of the historical cost at year-end and the meaning of each component of this computation. Where will be found, other than in the notes, the carrying value of associated companies at year-end? Other companies: explain the computation of carrying amount at year-end and the meaning of each component of this computation. Double-check the carrying value of other companies at year-end. What is the usefulness to an investor or shareholder of the 1999 figure of 280.4 millions shown both in the balance sheet and in the notes? B) Comparison: notes 12 and 14 in Stora Ensos annual report and note 7 in Pechineys annual report have the same purpose. Compare and contrast the computations and reporting choices made by each company.