Common use of Summary of Significant Accounting Policies (Continued Clause in Contracts

Summary of Significant Accounting Policies (Continued. Following is reconciliation of the beginning and ending balances of warrants measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the year ended December 31, 2010 and 2011: Balance as on January 1, 2010 — Issuance of warrants 29,359,551 Changes in fair value of warrants recorded in income statement 124,680,060 Balance as on December 31, 2010 154,039,611 Balance as on January 1, 2011 154,039,611 Changes in fair value of warrants recorded in income statement 113,732,565 Exercise of warrants Proceeds from the exercise of warrants 160,423,540 — Cash conversion of Series E preferred shares (resulting from the exercise of warrants) to Class B Ordinary Shares (160,423,540 ) — Cashless conversion of Series E preferred shares (resulting from the exercise of warrant) to Class B Ordinary Shares — (267,772,176 ) Balance as on December 31, 2011 — In determining the fair value of the warrants, the Company applied the Black-Scholes option pricing model. The assumptions used in the Black-Scholes option pricing model are disclosed in Note 12.