SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jul. 31, 2019

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of subsidiaries and variable interest entities

The Company’s consolidated financial statements reflect the operating results of the following entities:


	Date of		Place of	Percentage of
	incorporation		incorporation	ownership		Principal activities
ATIF		January 5, 2015	British Virgin Islands	100	%	Parent Holding
Wholly owned subsidiaries
ATIF HK		January 6, 2015	Hong Kong	100	%	Investment holding
Huaya		May 20, 2015	PRC	100	%	WFOE, Consultancy and information technology support
VIE
Qianhai		November 3, 2015	PRC	VIE		Listing and financial consulting services

Schedule of financial statement amounts and balances of the VIE were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances

The following financial statement amounts and balances of the VIE were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances:


	As of July 31,
	2019		2018
Current assets	$	3,673,890	$	3,689,028
Non-current assets		68,375		49,378
Total assets		3,742,265		3,738,406
Current liabilities		980,364		1,512,761
Non-current liabilities		—		—
Total liabilities		980,364		1,512,761
Net assets	$	2,761,901	$	2,225,645

The summarized operating results of the VIE’s are as follows:


	For the years ended July 31,
	2019		2018		2017
Operating revenue	$	2,777,618	$	5,341,271	$	3,657,223
Income from operations		884,789		2,927,679		925,065
Income before income taxes		930,361		2,863,744		2,147,253
Net income	$	697,631	$	2,146,927	$	641,107

The summarized cash flow information of the VIE are as follows:


	For the years ended July 31,
	2019		2018		2017
Net cash (used in) provided by operating activities	$	(3,380,071)	$	2,036,439	$	153,718
Net cash provided by (used in) investing activities		2,700,687		(2,898,916)		(20,483)
Net cash provided by (used in) financing activities	$	(14,626)	$	755,139	$	—

Schedule of estimated useful lives of assets

Property and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows:


		Useful life
Electronic equipment		3 years
Office furniture		5 years

Schedule of estimated useful lives of intangible assets

The straight-line method is used to compute amortization over the estimated useful lives of the intangible assets, as follows:


		Useful life
Accounting software		5 years
Financial and news platform		15 years

Schedule of disaggregation of revenue by service type

Revenue disaggregated by service type was as follows for the years ended July 31, 2019, 2018, and 2017:


	For the years ended July 31,
	2019		2018		2017
Revenue from consulting services	$	3,078,758	$	5,236,196	$	3,469,224
Revenue from customer’s initial registration fee		—		71,695		166,147
Total revenue	$	3,078,758	$	5,307,891	$	3,635,371

Schedule of currency exchange rates

The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report:


	July 31, 2019		July 31, 2018		July 31, 2017
Foreign currency	Balance Sheet	Profits/Loss	Balance Sheet	Profits/Loss	Balance Sheet	Profits/Loss
RMB: 1USD	0.1453	0.1463	0.1467	0.1538	0.1487	0.1466
HKD: 1USD	0.1278	0.1276	0.1274	0.1278	0.1280	0.1287

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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