$Baidu (BIDU.US)$Amendments to certain provisions of the und...

$Baidu(BIDU.US)$Amendments to certain provisions of the underlying preferred stock led to an increase in equity law investment losses. If the value of the invested company declines (as described above, possibly due to an adverse modification of the preferred share clause), then the investment company is required to reflect this decline in value in its financial statements under the Equities Act. This means that if the value of the invested company's shares held by the investing company falls, it needs to record a loss reflected in its “other losses.” This is why amending preferred stock provisions may increase equity law investment losses.