LONG TERM INVESTMENTS

12 Months Ended

Aug. 31, 2012

LONG TERM INVESTMENTS [Text Block]

5.	LONG TERM INVESTMENTS
	Pro Eco Energy USA Ltd.
	On April 21, 2008, the Company purchased 900,000 shares for $45,000 in Pro Eco Energy USA Ltd. (“Pro Eco Energy”) which represented 8.25% ownership. The Chairman of the Company is a Director in Pro Eco Energy which established the existence of significant influence in Pro Eco Energy and accordingly the equity method of accounting is adopted for the investment.
	During the year ended August 31, 2012, the Company recorded an equity loss of $4,824 (August 31, 2011 – equity loss of $2,304), which resulted in a net investment of $32,197 (August 31, 2011 - $37,021).
	Global Solar Water Power Systems Inc.
	On August 31, 2012, the Company has purchased 9.82% (August 31, 2011 – 8.14%) investment in Global Solar Water Power Systems Inc. (“GSWPS”). This was made by a cash/accrued contribution of $145,500 and an issuance of 500,000 shares of the Company at $0.25 per share for a combined value of $270,500. GSWPS is owned by an executive officer of the Company.
	During the year ended August 31, 2012, the Company increased the investment in GSWPS by $42,000. As at August 31, 2012, based on the management’s assessment of GSWPS’s current operations, the management determined that there was an other than temporary decline in the fair value of the Company’s long-term investment in GSWPS and $197,910 has been written off which resulted in a net investment of $68,500 (August 31, 2011 - $224,410).