Note 9 - Assets and Liabilities Classified as Held for Sale

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

9. Assets and liabilities classified as held for sale

In the fourth fiscal quarter of 2015, the Company committed to a plan to sell one of its internet advertising operating VIEs, Beijing Chuang Fu Tian Xia, also known as liansuo.com., which did not qualify for presentation as a discontinued operation, as it was not considered a significant portion of the Company’s internet advertising and data service business segment. The Company expects to consummate the transaction before March 31, 2017 and does not expect to have any continued involvement with the entity after the disposal date.

The Company classified the assets and liabilities of the disposal group as held for sale as of each reporting date and presented separately in the asset and liability section, respectively. The assets and liabilities held by the disposal group are as follows:

	September 30, 2016		December 31, 2015
	US$(’000)		US$(’000)
	(Unaudited)
Assets classified as held for sale
Cash and cash equivalents		46		181
Accounts receivable, net		136		53
Other receivables, net		116		95
Advance to suppliers		348		366
Property and equipment, net		35		43
Deferred tax assets		194		298
Goodwill allocated to the disposal group (1)		889		914
Inter-co balances elimination (2)		-		(68	)
Total assets classified as held for sale		1,764		1,882
Liabilities classified as held for sale
Accounts payable		-		154
Advance from customers		550		588
Accrued payroll and other accruals		37		50
Taxes payable		-		9
Other payables		123		364
Inter-co balances elimination (2)		-		(252	)
Total liabilities classified as held for sale		710		913

(1) Liansuo.com (the disposal group) is a portion of the Company’s internet advertising and data service reporting unit that constitutes a business. Goodwill allocated to the disposal group is calculated based on the relative fair value of liansuo.com and the remaining portion of the reporting unit that will be retained.

(2) Inter-company balances are part of the disposal group’s assets or liabilities, but were eliminated in deriving the consolidated financial statements.