Balance sheet format, terminology, and accounting methods Exhibit 3.5 presents the balance sheet prepared by Ericsson, the Swedish telecommunications firm, for the years ended December 31, 2007, and December 31, 2006. Ericsson applies IFRS, and reports its results in millions of Swedish kronor (SEK. In addition to the items reported in Ericsson€™s balance sheet, assume the following hypothetical information is available to you:
€¢ In 2007 Ericsson revalued land with an acquisition cost of SEK300 million upward, to its current fair value of SEK1,200 million.
€¢ In 2007 Ericsson wrote down the value of equipment, with a net carrying value of SEK2,400 million, to its fair value of SEK1,600 million.
€¢ Included in current provisions for 2007 is the estimated loss on a lawsuit, which a competitor filed, alleging patent infringement, Ericsson estimates the following range of outcomes for this lawsuit: 10% chance of damages of SEK6.000 million. 10% chance of damages of SEK2,400 million. 30% chance of damages of SEK500 million, 10% chance of damages of SEK40 million, and 4% chance of zero damages.
Prepare a balance sheet for Ericsson on December 31, 2007, following the format, terminology and accounting methods required by U.S. GAAP. Ignore any income tax effects any revisions to reportedamounts.

Ericsson Balance Sheet For Years ended December 31, 2007 and 2006 EXHIBIT 3.5 (Problem 31) Dacember 31, SEK million Nates 2007 2006 ASSETS Non-currunt assats Intangible asseta Capitalizad duvulopmant apansan 3,661 22,826 23,958 4,005 Goodwill 6,824 Insollactual propurty rights, brands and other ntangble assets 15,640 Ct1, C26, C27 9,304 Property, plant and oquipmant 7881 Financial assats Equity in jaint vantures and associatad comparien Other investmerts in sharas and participations Customer financing, non-curent Ct2 10,903 738 1,012 2,918 11,690 D400 C12 721 C12 1,921 Other financial assats, non-current C12 2,400 Dalarad tax assets Ca 13,664 87,010 63,373 Current ansets Inventorias Cta 22.475 21,470 C14 Trade rucaivablos 60,492 2,362 15,062 B1.070 Cuntomer firancing, current Dther currant rocanvablas 1,735 C16 15,012 Short-tarm investmants 29,406 Can 32,311 Cash and cash oquivalunts 28,310 158,107 20,900 151,667 Total assots 245,117 214,940 EOUITY AND LIABILITIES Equity Stockholdars' aquty Minority inturast in aquity of subsidiarius C16 Csa 134,112 940 135,0n2 120,113 782 Non-currant liabilitios Pust-umploymere banatits Provisions, non aument Defarrad tax sabilitios C17 6,188 6,068 368 2,799 382 C10, Cac Borrowings, non-ourant 21,320 12,004 Other non-current lablitios 1,714 2,888 22,389 23,724 Current liabilitios 9,358 Provisons, currant Borrowings, currunt Trada payables Other current labilitius Cta 13,280 C10, Caa C22 5,896 1,680 17,427 S8,183 O21 44,995 7,178 77,676 70.321 Total aquity and liabilitios 245,117 214,940