partnering for the future 123R), that requires all share-based payments, including grants of employee stock options, to be recognized in the income statement based on their fair values. Pro forma disclosure is no longer an alternative. SFAS No.123R is effective for the first interim or annual periods beginning July 1, 2005. Retroactive application of the requirements of SFAS No.123R to the begin- ning of the fiscal year that includes the effective date would be permitted. Bunge currently reports stock compensation based on APB No. 25 with pro forma disclosures regarding fair value. criterion of APB No. 23,  Accounting for Income Taxes—Special Areas, due to ambiguities surrounding the implementation of the Act and is effective upon issuance. Bunge is currently reviewing this provision of the act and has not completed its evaluation of the provision’s effect on Bunge. In December 2004, the FASB deferred the issuance of their final standard on earnings per share SFAS No.128R,  Earnings per Share, an amendment to FAS 128. The final standard is expected to be effective in 2005 and will require retrospective application for  all prior periods presented. The significant proposed changes to the EPS computation are changes to the treasury stock method and contingent share guidance for computing year-to-date diluted EPS, removal of the ability to overcome the presumption of share settlement when computing diluted EPS when there is a choice of share or cash settlement and inclusion of mandatorily convert- ible securities in basic EPS. Bunge is currently evaluating the proposed provisions of this amendment to determine the impact on its consolidated financial statements. In November 2004, the FASB issued SFAS No.151,  Inventory Costs, an amendment of ARB No. 43, Chapter 4  (SFAS No.151), to clarify the accounting for abnormal amounts of idle facility expense, freight, handling costs and wasted material (spoilage) relating to inventory pricing. SFAS No.151 requires that such items be recognized as current-period charges regardless of whether they meet the criterion of “so abnormal” and requires that the allocation of fixed production overheads to inventory be based on the normal capacity of the production facilities. The guidance is effective for inventory costs incurred during fiscal years beginning after June 15, 2005. Bunge has determined that SFAS No.151 will not have a material effect on its consolidated financial statements.  reclassifications Certain reclassifications were made to the prior years’ consolidated financial statements to conform to the current year’s presentation.  In December 2004, the FASB issued SFAS No.153,  Exchanges  of Nonmonetary Assets, an amendment of APB Opinion No. 29. APB Opinion No. 29,  Accounting for Nonmonetary Transactions, provided an exception to its basic measurement principle (fair value) for exchanges of similar productive assets. Under APB Opinion No. 29, an exchange of a productive asset for a similar productive asset was based on the recorded amount of the asset relinquished. SFAS No.153 eliminates this exception and replaces it with an exception for exchanges of nonmonetary assets that do not have commercial substance. SFAS No.153 is effective prospectively for nonmonetary asset exchanges occurring in  fiscal periods beginning after June 15, 2005. acquisition of bunge brasil minority interest In the  second half of 2004, Bunge acquired the remaining 17% of the outstanding capital stock of Bunge Brasil S.A. that it did not already own for $314 million in cash. The acquisition was funded with net proceeds of a public offering of Bunge’s common shares in June 2004 (see Note 23). As a result of the acquisition, Bunge directly owns 100% of Bunge Brasil and its subsidiaries, Bunge Alimentos S.A., Bunge’s Brazilian agribusiness and food products subsidiary, and Bunge Fertilizantes S.A., Bunge’s Brazilian fertilizer subsidiary. Bunge has been consolidating Bunge Alimentos and Bunge Fertilizantes since 1997. The acqui- sition was accounted for under the purchase method as a step acquisition of minority interest. In December 2004, the FASB issued proposed FSP No. FAS 109-b, Accounting and Disclosure Guidance for the Foreign Earnings Repatriation Provision Within the American Jobs Creation Act of 2004. The American Jobs Creation Act of 2004 (the Act) was signed into law by the President and includes a provision that allows U.S. corporations, in certain circumstances, to repatriate cumulative non-U.S. earnings at tax rates that may be below the 35% U.S. statutory rate. FSP No. FAS 109-b is intended to provide limited relief in the application of the indefinite reinvestment The following table summarizes the preliminary allocation of  $137 million, which is the excess of the cost to acquire the minority interest in Bunge Brasil over the historical book value  of the acquired minority interest, to certain intangible assets  and segments. This allocation is subject to adjustments based on the finalization of the fair value of these intangible assets. 61 2. business combinations