Note 9 - Assets and Liabilities Classified as Held for Sale

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

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

9. Assets and liabilities classified as held for sale

As discussed in Note

2,

in the

fourth

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., in exchange for cash to continue the expansion of its core business, which did not qualify for presentation as a discontinued operation in accordance with ASC Topic

205,

as it is not considered a significant portion of the Company’s internet advertising and data service business segment. The Company classified the assets and liabilities of the disposal group as held for sale as of

December

31,

2015

and presented separately in the asset and liability section, respectively, in accordance with ASC Topic

360.

The assets and liabilities held by the disposal group after allocation of an approximately

US$914,000

of goodwill from the internet advertising and data service reporting unit based on the relative fair value of the disposal group and the remaining portion of the reporting unit that would be retained are as follows:

	As of December 31, 2015
	US$(’000)
Assets classified as held for sale
Cash and cash equivalents		181
Accounts receivable, net		53
Other receivables, net		95
Advance to suppliers		366
Property and equipment, net		43
Deferred tax assets		298
Goodwill allocated to the disposal group		914
Inter-co balances elimination (1)		(68	)
Total assets classified as held for sale		1,882
Liabilities classified as held for sale
Accounts payable		154
Advance from customers		588
Accrued payroll and other accruals		50
Taxes payable		9
Other payables		364
Inter-co balances elimination (1)		(252	)
Total liabilities classified as held for sale		913

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

The Company reassessed the status of its disposal group and concluded that its disposal group no longer met all the criteria for the classification as held for sale in accordance with ASC Topic

360

during the

fourth

quarter of

2016.

Therefore, the Company reclassified the assets and liabilities related to the disposal group as held and used as of

December

31,

2016.

The Company terminated its plan to sell liansuo.com in

February

2017,

subsequently.