ORGANIZATION

12 Months Ended

Sep. 30, 2011

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1 - ORGANIZATION

Computer Graphics International Inc. (“CGII” or “the Company”) (formerly known as AMP Productions, Ltd.), was incorporated under the laws of the State of Nevada on February 27, 2003.  China Digital Image Organization Co., Limited (“China Digital”) was incorporated in Hong Kong on August 5, 2009.  China Digital holds 100% of Shenzhen Digital Image Technologies Co., Ltd. (“SZ DIT”), a company incorporated in Shenzhen, Peoples’ Republic of China (“PRC”), and ultimately holds 100% of Shenzhen Digital Image 3D Design and Development Co., Ltd. (“SZ DIDD”) (formerly known as Shenzhen WeiShengMing Industrials Co., Ltd), a company also incorporated in Shenzhen, PRC.

Pursuant to a series of transactions completed in October, 2010, China Digital became the holding company of SZ DIT and SZ DIDD (the "Group Reorganization").  In October, 2010, China Digital acquired a 100% interest in SZ DIT (which directly holds a 100% interest in SZ DIDD) at a consideration of CNY2,000,000 (equivalent to $283,265).  Prior to and after this acquisition, both China Digital and SZ DIT were controlled by the same party, Hua Zeng.  Hua Zeng already controlled and held a 100% interest in SZ DIDD in January, 2007.  In August, 2010, SZ DIT acquired a 100% interest of SZ DIDD.  Prior to and after this acquisition, both SZ DIT and SZ DIDD were controlled by Hua Zeng.

Since China Digital, SZ DIT and SZ DIDD were under common control of the ultimate controlling party, Hua Zeng, both before and after the completion of the Group Reorganization, the Group Reorganization has been accounted for using merger accounting.  The Consolidated Financial Statements have been prepared on the basis as if China Digital had always been the holding company of SZ DIT and SZ DIDD and the group structure had been in existence throughout the years ended September 30, 2011 and 2010 as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation”.

On March 31, 2011, CGII entered into and closed a share purchase and exchange agreement (the “Share Exchange Agreement”) with China Digital, the shareholders of China Digital, and Thomas E. Mills, pursuant to which CGII acquired 100% of the issued and outstanding capital stock of China Digital (the “Share Exchange”) in exchange for (i) 14,462,684 shares of CGII’s common stock, representing 97% of the increased issued and outstanding stock of CGII, and (ii) payment (“the Cash Component”) of $2,368,471 (note 5).  The Cash Component was payable in full within 12 months after the Closing.

In connection with the Share Exchange, Thomas E. Mills sold 260,124 shares of CGII’s common stock to Truth Giver Group Limited, a company incorporated under the laws of the British Virgin Islands and owned by Hua Zeng and Jing Wang, in exchange for an aggregate payment of $300,000.

On completion of the Share Exchange, CGII acquired all of the outstanding issued capital of China Digital.  For accounting and financial reporting purposes, the acquisition has been treated as a reverse acquisition of CGII by China Digital.  On completion of the reverse acquisition, the prior business of CGII was abandoned and all liabilities of CGII were paid off or assumed by Thomas E. Mills, the former director of CGII.  For China Digital, the reverse acquisition is accounted for as a recapitalization.  Consequently, the assets and liabilities of China Digital have been brought forward at their book value and no goodwill has been recognized on the reverse acquisition of CGII. The historical financial statements prior to March 31, 2011 are those of China Digital.

The Company operates in a single reportable segment.  The principal activities of the Company are engaged in sales in majority of software promotion related products to customers in the nature of demonstration video and motion pictures using the application of three-dimension vision technology.

These consolidated financial statements present the Company and its subsidiaries on a historical basis.