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 ) : .

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as of december 31 | 2008 | 2007
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equity as previously reported | $ 5310 | $ 6221
increase for reclassification of non-controlling interests | 105 | 40
equity as adjusted | $ 5415 | $ 6261
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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: what is the impact of the reclassification of non-controlling interests in equity?
Program: divide(105, 5310)
Answer: 0.01977