2.4.0.8000070 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIEStruefalsefalse1falsefalsefalseD130101_130630http://www.sec.gov/CIK0001167905duration2013-01-01T00:00:002013-06-30T00:00:001true1fil_SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESAbstractfil_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false2us-gaap_BasisOfPresentationAndSignificantAccountingPoliciesTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><pre>2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</pre><pre>BASIS OF PRESENTATION</pre><pre>The accompanying unaudited consolidated condensed financial statements of the</pre><pre>Company have been prepared pursuant to the rules and regulations of the</pre><pre>Securities and Exchange Commission. Certain information and note disclosures</pre><pre>normally included in annual financial statements prepared in accordance with</pre><pre>generally accepted accounting principles in the United States of America</pre><pre>("GAAP") have been condensed or omitted pursuant to those rules and regulations;</pre><pre>however, although the Company believes that the disclosures are adequate to make</pre><pre>the information not misleading. In the opinion of management, all adjustments</pre><pre>necessary for a fair statement of the results of operations and financial</pre><pre>position for the periods presented have been reflected as required by Regulation</pre><pre>S-X. The results of operations for the interim period presented is not</pre><pre>necessarily indicative of the results of operations to be expected for the year.</pre><pre>These consolidated condensed financial statements should be read in conjunction</pre><pre>with the Company's most recent Form 10-K which includes the audited consolidated</pre><pre>or combined financial statements for the three years ended December 31, 2012.</pre><pre>PRINCIPLES OF CONSOLIDATION</pre><pre>The consolidated condensed financial statements include the accounts of Amincor,</pre><pre>Inc. and all of its consolidated subsidiaries (collectively the "Company"). All</pre><pre>intercompany balances and transactions have been eliminated in consolidation.</pre><pre>USE OF ESTIMATES</pre><pre>The preparation of financial statements in conformity with GAAP requires</pre><pre>management to make estimates and assumptions that affect the reported amount of</pre><pre>assets and liabilities and the disclosure of contingent assets and liabilities</pre><pre>at the date of the financial statements, and the reported amounts of revenues</pre><pre>and expenses during the reporting periods. Significant estimates include the</pre><pre>valuation of goodwill and intangible assets, the useful lives of tangible and</pre><pre>intangible assets, depreciation and amortization of property, plant and</pre><pre>equipment, allowances for doubtful accounts and inventory obsolescence,</pre><pre>estimates related to completion of contracts and loss contingencies on</pre><pre>particular uncompleted contracts and the valuation allowance on deferred tax</pre><pre>assets. Actual results could differ from those estimates.</pre><pre>REVENUE RECOGNITION</pre><pre>BPI</pre><pre>Revenue is recognized from product sales when goods are delivered to BPI's</pre><pre>shipping dock, and are made available for pick-up by the customer, at which</pre><pre>point title and risk of loss pass to the customer. Customer sales discounts are</pre><pre>accounted for as reductions in revenues in the same period the related sales are</pre><pre>recorded.</pre><pre>TYREE</pre><pre>Maintenance and repair services for several retail petroleum customers are</pre><pre>performed under multi-year, unit price contracts ("Tyree Contracts"). Under</pre><pre>these agreements, the customer pays a set price per contracted retail location</pre><pre>per month and Tyree provides a defined scope of maintenance and repair services</pre><pre>at these locations on an on-call or as scheduled basis. Revenue earned under</pre><pre>Tyree Contracts is recognized each month at the prevailing per location unit</pre><pre>price. Revenue from other maintenance and repair services is recognized as these</pre><pre>services are rendered.</pre><pre>Tyree uses the percentage-of-completion method on construction services,</pre><pre>measured by the percentage of total costs incurred to date to estimated total</pre><pre>costs for each contract. This method is used because management considers costs</pre><pre>to date to be the best available measure of progress on these contracts.</pre><pre>Provisions for estimated losses on uncompleted contracts are made in the period</pre><pre>in which overall contract losses become probable. Changes in job performance,</pre><pre>job conditions and estimated profitability, including those arising from final</pre><pre>contract settlements, may result in revisions to costs and income. These</pre><pre>revisions are recognized in the period in which it is probable that the customer</pre><pre>will approve the variation and the amount of revenue arising from the revision</pre><pre>can be reliably measured. An amount equal to contract costs attributable to</pre><pre>claims is included in revenues when negotiations have reached an advance stage</pre><pre>such that it is probable that the customer will accept the claim and the amount</pre><pre>can be measured reliably.</pre><pre>The asset account "Costs and estimated earnings in excess of billings on</pre><pre>uncompleted contracts," represents revenues recognized in excess of amounts</pre><pre>billed.</pre><pre>The liability account, "Billings in excess of cost and estimated earnings on</pre><pre>uncompleted contracts," represents billings in excess of revenues recognized.</pre><pre>AWWT</pre><pre>AWWT provides water remediation and logistics services for its clients which</pre><pre>include any business that produces waste water. AWWT invoices clients based on</pre><pre>bills of lading which specify the quantity and type of water treated. Revenue is</pre><pre>recognized as water remediation services are performed.</pre><pre>ACCOUNTS RECEIVABLE</pre><pre>Accounts receivable are recorded net of an allowance for doubtful accounts. The</pre><pre>credit worthiness of customers is analyzed based on historical experience, as</pre><pre>well as the prevailing business and economic environment. An allowance for</pre><pre>doubtful accounts is established and determined based on management's</pre><pre>assessments of the aging of receivables, payment history, the customer's current</pre><pre>credit worthiness and the economic environment. Accounts are written off when</pre><pre>significantly past due and after exhaustive efforts at collection. Recoveries of</pre><pre>accounts receivables previously written off are recorded as income when</pre><pre>subsequently collected.</pre><pre>Tyree's accounts receivable for maintenance and repair services and construction</pre><pre>contracts are recorded at the invoiced amount and do not bear interest. Tyree,</pre><pre>BPI, EQS, and AWWT extend unsecured credit to customers in the ordinary course</pre><pre>of business but mitigate the associated risks by performing credit checks and</pre><pre>actively pursuing past due accounts. Tyree follows the practice of filing</pre><pre>statutory "mechanics" liens on construction projects where collection problems</pre><pre>are anticipated.</pre><pre>MORTGAGES RECEIVABLE</pre><pre>The mortgages receivable consist of commercial loans collateralized by property</pre><pre>in Pelham Manor, New York. The loans were non-performing and property was in</pre><pre>foreclosure as of December 31, 2012. In 2013, the Company gained title to the</pre><pre>property and is included in property, plant and equipment as of June 30, 2013.</pre><pre>The value of the mortgages was based on the fair value of the collateral</pre><pre>ALLOWANCE FOR LOAN LOSSES</pre><pre>An allowance for loan losses is established as losses are estimated to have</pre><pre>occurred through a provision for loan losses charged to operations. A loan is</pre><pre>determined to be non-accrual when it is probable that scheduled payments of</pre><pre>principal and interest will not be received when due according to the</pre><pre>contractual terms of the loan agreement. When a loan is placed on non-accrual</pre><pre>status, all accrued yet uncollected interest is reversed from income. Payments</pre><pre>received on non-accrual loans are generally applied to the outstanding principal</pre><pre>balance. Loans are removed from non-accrual status when management believes that</pre><pre>the borrower will resume making the payments required by the loan agreement.</pre><pre>INVENTORIES</pre><pre>Inventories are stated at the lower of cost or market using the first-in,</pre><pre>first-out method. Market is determined based on the net realizable value with</pre><pre>appropriate consideration given to obsolescence, excessive levels and other</pre><pre>market factors. An inventory reserve is recorded if the carrying amount of the</pre><pre>inventory exceeds its estimated market value.</pre><pre>PROPERTY, PLANT AND EQUIPMENT</pre><pre>Property, plant and equipment are stated at cost and the related depreciation is</pre><pre>computed using the straight-line method over the estimated useful lives of the</pre><pre>respective assets. Expenditures for repairs and maintenance are charged to</pre><pre>operations as incurred. Renewals and betterments are capitalized. Upon the sale</pre><pre>or retirement of an asset, the related costs and accumulated depreciation are</pre><pre>removed from the accounts and any gain or loss is recognized in the results of</pre><pre>operations.</pre><pre>Leasehold improvements are amortized over the lesser of the estimated life of</pre><pre>the asset or the lease term.</pre><pre>GOODWILL AND INTANGIBLE ASSETS</pre><pre>Goodwill represents the cost of acquiring a business that exceeds the net fair</pre><pre>value ascribed to its identifiable assets and liabilities. Goodwill and</pre><pre>indefinite-lived intangibles are not subject to amortization but are tested for</pre><pre>impairment annually and whenever events or circumstances change, such as a</pre><pre>significant adverse change in the economic climate that would make it more</pre><pre>likely than not that impairment may have occurred. If the carrying value of</pre><pre>goodwill or an indefinite-lived intangible asset exceeds its fair value, an</pre><pre>impairment loss is recognized.</pre><pre>Intangible assets with finite lives are recorded at cost less accumulated</pre><pre>amortization. Finite-lived tangible assets are amortized on a straight-line</pre><pre>basis over the expected useful lives of the respective assets.</pre><pre>IMPAIRMENT OF LONG-LIVED ASSETS</pre><pre>The Company evaluates the fair value of long-lived assets on an annual basis or</pre><pre>whenever events or changes in circumstances indicate that its carrying amounts</pre><pre>may not be recoverable. Accordingly, any impairment of value is recognized when</pre><pre>the carrying amount of a long-lived asset exceeds its fair value.</pre><pre>EARNINGS (LOSS) PER SHARE</pre><pre>Basic earnings (loss) per share is computed by dividing net income (loss)</pre><pre>available to common stockholders by the weighted-average number of common shares</pre><pre>outstanding for the period. Diluted earnings (loss) per share considers the</pre><pre>potential dilution that could occur if securities or other contracts to issue</pre><pre>common stock were exercised or could otherwise cause the issuance of common</pre><pre>stock. Such contracts include stock options and convertible preferred stock,</pre><pre>which when exercised or converted into common stock would cause the issuance of</pre><pre>common stock that then would share in earnings (loss). Such potential additional</pre><pre>common shares are included in the computation of diluted earnings per share.</pre><pre>Diluted loss per share is not computed because any potential additional common</pre><pre>shares would reduce the reported loss per share and therefore have an</pre><pre>antidilutive effect.</pre><pre>SHARE-BASED COMPENSATION</pre><pre>All share-based awards are measured based on their grant date fair values and</pre><pre>are charged to expenses over the period during which the required services are</pre><pre>provided in exchange for the award (the vesting period). Share-based awards are</pre><pre>subject to specific vesting conditions. Compensation cost is recognized over the</pre><pre>vesting period based on the grant date fair value of the awards and the portion</pre><pre>of the award that is ultimately expected to vest.</pre><pre>RECLASSIFICATIONS</pre><pre>Certain reclassifications have been made to the accompanying consolidated</pre><pre>condensed financial statements of prior periods to conform to the current</pre><pre>period's presentation.</pre>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for the basis of presentation and significant accounting policies concepts. Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). Accounting policies describe all significant accounting policies of the reporting entity.No definition available.false0falseSUMMARY OF SIGNIFICANT ACCOUNTING POLICIESUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.amincor.com/20130630/role/idr_DisclosureSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES12