EFTA01367011.pdf

Amendment #4 Page 582 of 868 lakILE! (leetaeli The Ccmbined Ertty recognizes revenue when an of the following criteria are met (0 persuasive evidence ci an arrangement exists, (ii) 'delivery or performance has owned (in) the sales pnce is feed a deterrnnatre, and (N) coltectattlity is reasonably assured The Combined Entity's revenue-generating achvey consists of longterm PPM yin the customer under when the customer eines to purchase an of the power generated The Combined Entity has determined that PPM shouki be accosted for as metalrug leases alter evaluating the lease classification criteria As customer payments under a power pactese agreement are dependent on power generation they are considered conbrgent rentals and are excluded from Mure martian actual lease payments Revenue from PPM is red:grazed based on the actual anount of power generated at rates specified under the contracts, assuming the other revenue retortion cr:ena discussedabove are met L Employee benefits The Combined Entity s PRC employees participate in goverrtnerd.mandated defined contritute° plans pasueM to with certain perekm beneMs, medical care, unemployment insurance employee noising fund and otter welfare tenets are provided to employees The Combined Slily accrues for these benefits based on a certain percentage of the employees' saltines as etiolated by PRC labor rules and retie:ens. TM costs of the Contlned Entity's obligations to the defined caghtution plans are charged to the combred statements of comprehensive loss wnen the related employee service is provided and arrowted to USIA 74 and USS202 for the years ended December 31, 2013 and 2014 respectively The Combined Entity has no otrer otsgaton for the payment of employee benefits associatedwith these plans in Government grants Government gaits are non-reciprocal transfers of monetary or non-monetary assets from the government to the Combined Entity A government grant is recognized when ttere is reasonable assurance that the gant we be received and that the Combined &Cy will comply with the conditions Steam° to the grate A government grant related loan asset is recognized initially as deferred income and anodized to profit or loss on a straight-line basis over the useful fife of the asset A grant that compensates the Conned Entity for expenses to be incurred in the false s recognized Moly as deferred mane, and released to profit or loss in the periods in which the expenses are recognized A grant that compensates the Combined Entity for expenses *seed/ 'muffed s recogneed m profit a loss immediately For the years ended December 31 2013 and 2014 US$848 and US$859 representing the amortization d government grant of US$16,715 related to the equipment pscresed in prof years was credited against deprecation expense which is included an cost of revenues in the combined staterrerts d coriumh.nsse loss As of December 31 2013 and 2014 the balance of uremorteed government grant was US$14,173 and US$13.263, respectwely, of which the current portion of USS910 and USSE59 was included in accrued expenses and other current babates. and the non-current porton US$13.263 and US$12,404 was included en over non-current fiabixGes in tre combined balance sheets. respectwely a Operating /oases Tre Combined Ent ty leases premises for offices under rem-cancellable operating leases. Leases with escalated rent provisions are recognized on a straght-fine basis comrenong with tie beginrang of the lease term There are no capital improtemere funding other ease concessions a contingent rent n the lease agreements F-262 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058539 CONFIDENTIAL SONY GM_00204723 EFTA01367011