EFTA01367013.pdf

Amendment #4 Page 584 of 868 • Level 2 inns are irputs other tren quoted paces ncluded within Level 'I get are observable for tit asset or heady. ether areal/ or snored,/ • Level 3 inputs are unobservable inputs lame asset or liability. The carry amount of cash restricted cash. notes receivable. accounts receivable amounts due from rated parties. accounts payable, amounts &e to rated parties, accrued expenses and Over anent bababes as cf December 31. 2013 and 2014, approximate their far varies Long-term bank loans far value is based on the amount of future cash flows assoaated with each debt instrument cescounted at the Combined Entity s current borrowing rate for smdar debt instruments of corrporatie terms. The carrying value of the long-term loans approximate thee fair values as all the longterm bank loans carry variable interest rates which approximate rates currently offered by the Combined Entity's tautens for entre debt instruments of comparable matinees r. Rearatty issued accountbwr standards The Financial Accountrg Standards Board (*PASEO issued Accounting Startanla Updsles (AStl) No 201409, Revenue Iran Contnects win Callomen, in Ma/ 2)14 Asu 2014.09 requires en eray to recOgniZe revenue to depict the transfer of prorated goods a services to customers n an annul tret reflects the COModeratiOn 10 whch the erty expects la be eatled in excharge for those goods or services An arty should also disclose sufficert quantitative and qualitative ntorrretion to enable users of finance' statements to Lnderstand the nature, amout Wong, and uncertainty of revenue and cash flows arising From contracts vnth customers The new standard is elleave for annual reeving periods begnnng after Decanter 15. 2017 The Combined Entity has rot yet ckteirrme0 the Impact of the raw standard on Is cur! pclicres ' Cr weenie recopri!on 3. Property. plant and equipment. net Property. part and equipment consists of the fotomng December 31, 2013 2014 US$ US$ Machinery and equipment 272,251 271.371 Buildings 3,082 3,282 Equipment and furniture 293 311 Veludes 354 294 275,980 275,258 Less Accurrulaed depreciator, (51 685) (68420) Property. art and equipment. ret 224.315 208,838 Depreciation expense for property, part and equipment was US514.907 and USS15,062 for the years ended Decanter 31, 2013 and 2014. respected* As of December 31. 2013 and 2014, the Combined Entity has pledged property. plant and equipment with a total carrying aniount of LISS221.480 and USS205.965 respectively. to seen bank borroworgs 4. Income taxes No provsk:n for Hong Kong profits tax as made for Holston XIL arid Hanlon BAV, es they cad not Novotny assessable profits arising in or derived frOM MO; Kong in 2013 as 2014 F-264 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-0058541 CONFIDENTIAL SDNY_GM_00204725 EFTA01367013