XML 33 R20.htm IDEA: XBRL DOCUMENT v3.22.1
VARIABLE INTEREST ENTITIES
12 Months Ended
Dec. 31, 2021
VARIABLE INTEREST ENTITIES  
VARIABLE INTEREST ENTITIES

10. VARIABLE INTEREST ENTITIES

Since 2016, the Company, through its subsidiaries, entered into silent partnership agreements and/or various types of bankruptcy remote arrangements for the sole purpose of holding Japan project companies. Under the silent partnership agreements and/or the bankruptcy remote arrangements, the project companies are considered VIEs in which the Company has no majority equity interests, but is entitled to substantially all of the economic interests of the projects. In addition, the Company has the power to make decisions over the activities that most significantly impact the economic performance of the projects under the asset management agreement signed simultaneously between the project companies and a wholly-owned subsidiary, Canadian Solar Projects K.K. As such, the Company concluded it was the primary beneficiary of the project companies and thus these project companies were accounted for as consolidated VIEs since their establishment. The Company does not retain any ownership interest nor control of the bankruptcy remote entities, which individually and, in the aggregate, are insignificant.

As of December 31, 2020 and 2021, the carrying amounts and classifications of the consolidated VIEs’ major assets and liabilities with immaterial items combined, excluding intercompany balances which are eliminated upon consolidation, included in the Company’s consolidated balance sheets are as follows:

​

​

​

​

​

​

​

    

At December 31, 

​

At December 31, 

​

​

2020

​

2021

​

​

$

​

$

Cash

​

42,064

​

48,200

Project assets

​

337,836

​

289,315

Other assets

​

79,580

​

53,091

Total assets

​

459,480

​

390,606

​

​

​

​

​

Short-term borrowings

​

180,773

​

113,857

Long-term borrowings

​

52,408

​

106,880

Other liabilities

​

60,845

​

36,872

Total liabilities

​

294,026

​

257,609

​

Net income and overall cash flow activities during the years ended December 31, 2020 and 2021 were immaterial to the Company’s consolidated financial statements.