Summary of Significant Accounting Policies, Continued. Receivables
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.
Summary of Significant Accounting Policies, Continued. On November 23, 2010, the court released the restriction on the 95% equity interests in Quan Toodou and issued another Asset Conservatory Notification to restrict the transfer, disposal or payment of dividend on the 38% equity interests in Quan Toodou ("Frozen Equity"), which represents the plaintiff's claim of her portion of the community assets. The court did not specify the period of the conservatory measures and normally, it should be no longer than 2 years according to PRC judicial practice. Subsequently, the Company has evaluated the potential impact of the lawsuit on the contractual arrangements it has currently in place with Xxxx Xxxxxx based on the advice of its PRC legal counsel. Based on the advice from the Company's PRC legal counsel, the restrictions imposed under the conservatory measures did not impact the validity and performance of any of the agreements entered into between Reshuffle Shanghai and Xx. Xxxx as the nominee shareholder of Xxxx Xxxxxx and between Reshuffle Shanghai and Xxxx Xxxxxx. Consequently, prior to the litigation and issuance of the Asset Conservatory Notification, it did not impact the Company's previous accounting conclusion on the consolidation of Xxxx Xxxxxx. Based on the advice of the Company's PRC legal counsel, upon the issuance of the conservatory measures as set out in the Asset Conservatory Notification, the Company concluded that all of these agreements discussed in Note 1 are still valid. While the overall performance of these agreements is still intact, certain restrictions have been imposed as a result of the conservatory measures on the following agreements: • Proxy Agreement—The conservatory measures prohibited the use of voting rights to transfer, dispose or distribute dividend on the Frozen Equity. However, Reshuffle Shanghai could continue to exercise full voting rights on all other matters, including making all the operational and financial decisions. • Option Agreement—the exercise of the option agreement was not allowed under the conservatory measure, however, the exercise under this agreement is subject to restrictions under the current PRC laws regardless of the conservatory measures. Given the PRC laws and regulations prohibit or restrict foreign ownership of companies that provide advertising services and hold ICP license and the License for Transmission of Audio-Visual Programs through the Internet at present, the Company is not allowed to exercise the option to acquire the equity interest in Qu...
Summary of Significant Accounting Policies, Continued. During the course of operations the Gas Departments have activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in business-type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business-type activities column. Further, certain activity may occur during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in business-type activities are eliminated so that only the net amount is included as internal balances in the business-type activities column.
Summary of Significant Accounting Policies, Continued. Financial assets and liabilities measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above was as follows: Cash in bank 97,275,297 — — 97,275,297 Restricted cash 66,227,000 — — 66,227,000 Bank deposit with the maturity term below 3 months 165,875,478 — — 165,875,478 Bank deposit with the maturity term greater than 3 months but less than 1 year 5,837,246 — — 5,837,246 Total 335,215,021 — — 335,215,021 Warrants to purchase Series E Preferred Shares (Note 10) 154,039,611 154,039,611 Cash in bank 872,000,453 — — 872,000,453 Restricted cash 96,786,719 — — 96,786,719 Total 968,787,172 — — 968,787,172 In accordance with the provisions of the Impairment or Disposal of Long-Lived Assets Subsections of ASC 000-00-00, long-lived assets held and used were written down to their fair value whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The determination of fair value of the long-lived assets acquired involves significant judgments and estimates, including, but are not limited to, comparable market transactions, quotes, future cash flows, business plans, technological improvements or obsolesces, and operating results. Impairment charges of RMB 2,372,289, zero and zero related to computer hardware and other equipment was recognized for the years ended December 31, 2009, 2010 and 2011 (Note 4). Financial assets and liabilities measured and recognized at fair value on a non-recurring basis and classified under the appropriate level of the fair value hierarchy as described above was as follows: Computer hardware and other equipment 72,425,312 — — 70,053,023 (2,372,289 )
Summary of Significant Accounting Policies, Continued. Mobile video services Sub-licensing revenues
Summary of Significant Accounting Policies, Continued statements of the China High, WGC, Shangdong Borun and Daqing Borun. All significant inter-company transactions and balances have been eliminated upon consolidation. The unaudited interim consolidated financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of the financial position as of September 30, 2009 and the statements of operations for the nine month periods ended September 30, 2008 and 2009, as well as the statements of cash flows for the nine months ended September 30, 2008 and 2009. Certain information and disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. These unaudited interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2008. The Company believes that these financial statements contain all adjustments necessary so that they are not misleading. The results of operations for interim periods are not necessarily indicative of the results of operations that could be expected for the full year.
Summary of Significant Accounting Policies, Continued. Allowance for Loan Losses (Continued)
Summary of Significant Accounting Policies, Continued. Cash and cash equivalents Trade receivables Materials and supplies Capital assets
Summary of Significant Accounting Policies, Continued. Net Position Flow Assumption
