Restatement of financial statements

9 Months Ended

Sep. 30, 2011

NotesToFinancialStatementsAbstract

Note 2 Restatement of financial statements

The financial statements for the period ended September 31, 2011 have been restated to reflect the change to the following previously reported items: long term investment, additional paid in capital, subscription received and equity. The accompanying consolidated financial statements for the quarter ended September 31, 2011 have been restated to reflect those corrections.

The effects of the Company’s previously issued consolidated financial statement as of September 30, 2011 are summarized as follows:

Selected Consolidated Balance Sheet information as of September 30, 2011 

	Previously Reported		Increase (Decrease)			Restated
	$		$			$
Assets
Long-term Investment		5,065,838		(2,798,586	)		2,267,252
Total Assets		5,065,938		(2,798,586	)		2,267,352
Stockholders’ Equity
Additional Paid-in Capital		2,883,651		(78,000)			2,805,651
Subscription Received		4,587,838		(2,720,586	)		1,867,252
Total Stockholders’ Equity		5,065,938		(2,798,586	)		2,267,352
Total Liabilities and Stockholders’ Equity		5,065,938		(2,798,586	)		2,267,352

Note 2a

The Company has restated its financial statements for the period ended September 31, 2011 to correct an error in the recording of the carrying value of its investment in China Wood, Inc. ("China Wood").

The Company initially recorded its holdings of the China Wood Shares (defined hereinafter) at its fair value of $5,065,838 at the date of the transaction, and the Company relied upon Viking Nevis’s (defined hereinafter) Guaranty and Repurchase Agreement (defined hereinafter) to determine the value of China Wood Shares, in which Viking Nevis, on April 11, 2012, guaranteed that the price per share of the China Wood Shares that it had previously sold to the Company in consideration of the Company issuing Viking Nevis 14,481,420 shares of Company common stock, would not be less than $4.50 per share and agreed to repurchase the China Wood Shares by tendering shares of common stock of the Company owned by Viking Nevis to the Company if the 45-day volume weighted average price (“VWAP”) of the China Wood Shares was equal to or less than US$4.00 per share. Accordingly, the Company valued the China Wood Shares at $4.00/share and an impairment loss of $2,798,586 was recognized in the Company’s previously issued consolidated financial statements for the year ended December 31, 2011.

During the three month period ended June 30, 2013, the Company re-visited the accounting treatment for the above transactions, and determined that the exchange of China Wood Shares was a nonmonetary transaction and, therefore, should be accounted under ASC 845, “Nonmonetary Transactions.” The Company further determined that the exchange of shares had no commercial substance due to the fact that the Company’s future cash flows were not expected to significantly change as a result of the exchange of the shares. Therefore, the Company has now recorded the value of the China Wood Shares at their carrying value on the transaction date, and the excess of the fair value of purchase consideration over the assets purchased has been charged to additional paid in capital. On December 31, 2011, the China Wood Shares were fully impaired and charged to the income statements.