Income Tax (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax

Schedule of income before income taxes

	Years Ended December 31,
	2010		2011		2012
	$		$		$
Income (loss) Before Income Taxes:
PRC	78,382,049		(3,029,769	)	(32,340,085	)
Other	(16,731,339	)	(464,549,563	)	(37,916,141	)
Total	61,650,710		(467,579,332	)	(70,256,226	)

Schedule of expense (benefit) for income taxes

	Years Ended December 31,
	2010		2011		2012
	$		$		$
Current Tax
PRC	18,153,060		17,257,121		16,813,520
Other	2,513,074		58,037		—
	20,666,134		17,315,158		16,813,520
Deferred Tax
PRC	(7,969,900	)	(20,039,088	)	(15,644,866	)
Other	—		—		—
	(7,969,900	)	(20,039,088	)	(15,644,866	)
Income tax expense (benefit)	12,696,234		(2,723,930	)	1,168,654

Schedule of principal components of the deferred income tax assets/ liabilities

	As of December 31,
	2011		2012
	$		$
Deferred tax assets:
Accrued salary expenses	11,798,451		16,586,026
Bad debt provision	3,128,545		8,201,901
Net operating loss carry forwards	19,845,104		24,008,244
Advertising expenses temporarily non-deductible	4,345,753		9,415,848
Other	202,734		312,952
Gross deferred tax assets	39,320,587		58,524,971
Valuation allowance	(689,076	)	(7,324,717	)
Total deferred tax assets	38,631,511		51,200,254
Analysis as:
Current	22,077,959		41,212,042
Non-current	16,553,552		9,988,212
Deferred tax liabilities:
Amortization of intangible and other assets	40,108,863		36,925,632
Total deferred tax liabilities	40,108,863		36,925,632
Analysis as:
Current	—		—
Non-current	40,108,863		36,925,632

Schedule of movement of the valuation allowance

	Years Ended December 31,
	2010	2011	2012
	$	$	$
Balance as of January 1,	157,085	183,392	689,076
Additions	21,110	484,262	6,625,864
Changes due to foreign exchange	5,197	21,422	9,777
Balance as of December 31,	183,392	689,076	7,324,717

Schedule of reconciliation between the provision for income tax computed by applying the statutory tax rate to income before income taxes and the actual provision for income taxes

	Years Ended December 31,
	2010		2011		2012
	$		$		$
PRC income tax rate	25.00	%	25.00	%	25.00	%
Expenses not deductible for tax purposes	12.10	%	(24.26	)%	(14.86	)%
Effect of tax preference	(9.25	)%	0.72	%	(1.91	)%
Effect of different tax rate of subsidiary operation in other jurisdiction	(0.34	)%	(0.83	)%	(2.14	)%
Tax refund	(6.95	)%	—		1.18	%
Valuation allowance movement	0.03	%	(0.10	)%	(9.48	)%
Other	—		0.05	%	0.55	%
	20.59	%	0.58	%	(1.66	)%

Summary of aggregate amount and per share effect of the tax holiday

	Years Ended December 31,
	2010	2011	2012
	$	$	$
The aggregate dollar effect	9,530,020	3,046,393	(1,336,133	)
Per share effect — basic	0.12	0.04	(0.01	)
Per share effect — diluted	0.12	0.04	(0.01	)