Financial statements sample-ACCOUNTING POLICIES（会计政策） AND PROCEDURES（会计程序/方法）5

（Edited by freelance Chinese translator li – English to Chinese translation or Chinese to English translation services- financial statement translation）

Foreign Currency Translation （外币换算）— Branch offices, foreign subsidiaries, and equity interests（权益） are based in Canada, United Kingdom, France, the Netherlands, Germany, Switzerland, China, and Australia. The local currency（本国货币） has been designated as the functional currency（功能性货币/记账本位币） for such operations. Income and expense items are translated at the average monthly rate of exchange（月平均汇率）. Assets and liabilities are translated at the rate of exchange on the balance sheet dates（资产负债表日） with the resultant translation gains or losses（换算损益） included as a separate component of corporate equity. Corporate equity（公司股权/公司权益） includes net cumulative translation gains of $4,648,600 and $3,916,000 at June 30, 2007 and 2006, respectively.

Self-Insurance Programs（自我保险计划） — OCLC uses various self-insurance plans for certain of（以保证） its medical insurance programs（医疗保险计划） in the United States of America. The associated liability（相关负债） has been recorded in the financial statements based on information currently available as to（关于） the estimated ultimate cost（最高费用） for incidents（意外事件） prior to the balance sheet dates. Losses in excess of（超过） certain limits are insured with third-party insurance（第三方保险） companies.

Reclassifications（重新分类） — Certain（某个/某些） 2006 amounts have been reclassified to conform to（符合） the 2007 presentation（表述/表述方式）.