PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2012

PROPERTY, PLANT AND EQUIPMENT [Text Block]

9. PROPERTY, PLANT AND EQUIPMENT

As of December 31, 2012 and 2011, property, plant and equipment consist of:

		December 31,			December 31
		2012			2011
Office buildings	$	8,514,301		$	7,900,978
Plant and machinery		26,149,466			29,822,707
Electronic equipment, furniture and fixtures		10,799,484			10,602,803
Motor vehicles		1,020,480			1,100,810
Purchased software		55,331,553			68,460,250
		101,815,284			117,887,548
Less: accumulated depreciation		(35,545,964	)		(26,726,455	)
	$	66,269,320		$	91,161,093

Depreciation expense for the years ended December 31, 2012, 2011 and 2010 was approximately $11.53 million, $10.85 million and $7.72 million, respectively.

Management regularly evaluates property, plant and equipment for impairment if an event occurs or circumstances change that would potentially indicate that the carrying value of the property, plant and equipment and exceeded its fair value. Management utilizes the discounted cash flow method to estimate the fair value of the property, plant and equipment.

Based on the discounted cash flow method, management determined approximately $11,814,000 purchased software was impaired during the year ended December 31, 2012.