Advances payable

9 Months Ended

Sep. 30, 2015

Payables and Accruals [Abstract]

Advances Payable [Text Block]

18. Advances payable

 

As of September 30, 2015 and December 31, 2014, advances payable by the Company were $2.0 million and $6.2 million, respectively.

The amounts are special subsidies made by the Chinese government to the Company to offset the costs and charges related to the improvement of production capacities and improvement of the quality of products. For the government subsidies with no further conditions to be met, the amounts are recorded as other income when received; for the amounts with certain operating conditions, the government subsidies are recorded as advances payable when received and will be recorded as a deduction of related expenses and cost of acquired assets when the conditions are met.

The balances are unsecured, interest-free and will be repayable to the Chinese government if the usage of such advance does not continue to qualify for the subsidy.