the company recognizes the effect of income tax positions only if sustaining those positions is more likely than not .
changes in recognition or measurement are reflected in the period in which a change in judgment occurs .
the company records penalties and interest related to unrecognized tax benefits in income taxes in the company 2019s consolidated statements of income .
changes in accounting principles business combinations and noncontrolling interests on january 1 , 2009 , the company adopted revised principles related to business combinations and noncontrolling interests .
the revised principle on business combinations applies to all transactions or other events in which an entity obtains control over one or more businesses .
it requires an acquirer to recognize the assets acquired , the liabilities assumed , and any noncontrolling interest in the acquiree at the acquisition date , measured at their fair values as of that date .
business combinations achieved in stages require recognition of the identifiable assets and liabilities , as well as the noncontrolling interest in the acquiree , at the full amounts of their fair values when control is obtained .
this revision also changes the requirements for recognizing assets acquired and liabilities assumed arising from contingencies , and requires direct acquisition costs to be expensed .
in addition , it provides certain changes to income tax accounting for business combinations which apply to both new and previously existing business combinations .
in april 2009 , additional guidance was issued which revised certain business combination guidance related to accounting for contingent liabilities assumed in a business combination .
the company has adopted this guidance in conjunction with the adoption of the revised principles related to business combinations .
the adoption of the revised principles related to business combinations has not had a material impact on the consolidated financial statements .
the revised principle related to noncontrolling interests establishes accounting and reporting standards for the noncontrolling interests in a subsidiary and for the deconsolidation of a subsidiary .
the revised principle clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as a separate component of equity in the consolidated statements of financial position .
the revised principle requires retrospective adjustments , for all periods presented , of stockholders 2019 equity and net income for noncontrolling interests .
in addition to these financial reporting changes , the revised principle provides for significant changes in accounting related to changes in ownership of noncontrolling interests .
changes in aon 2019s controlling financial interests in consolidated subsidiaries that do not result in a loss of control are accounted for as equity transactions similar to treasury stock transactions .
if a change in ownership of a consolidated subsidiary results in a loss of control and deconsolidation , any retained ownership interests are remeasured at fair value with the gain or loss reported in net income .
in previous periods , noncontrolling interests for operating subsidiaries were reported in other general expenses in the consolidated statements of income .
prior period amounts have been restated to conform to the current year 2019s presentation .
the principal effect on the prior years 2019 balance sheets related to the adoption of the new guidance related to noncontrolling interests is summarized as follows ( in millions ) : .

As of December 31
2008
2007
Equity, as previously reported
$5,310
$6,221
Increase for reclassification of non-controlling interests
105
40
Equity, as adjusted
$5,415
$6,261

the revised principle also requires that net income be adjusted to include the net income attributable to the noncontrolling interests and a new separate caption for net income attributable to aon stockholders be presented in the consolidated statements of income .
the adoption of this new guidance increased net income by $ 16 million and $ 13 million for 2008 and 2007 , respectively .
net .

Question: Analyse this data from a financial earnings document. what is the impact of the reclassification of non-controlling interests in equity?
Choices:
557550
0.01939
1.01977
809.14286
0.01977
Correct choice index: 4