TAX RECOVERABLE AND JUDICIAL DEPOSITS IN BRAZIL AND PRIOR PERIOD ADJUSTMENTS

12 Months Ended

Jan. 31, 2015

Accounting Changes and Error Corrections [Abstract]

Accounting Changes and Error Corrections [Text Block]

16. Tax recoverable and judicial deposits in Brazil and prior period adjustments

A prior period adjustment was made to the Company’s Brazilian subsidiary’s balance sheet as at January 31, 2014 of US $1.3 million in connection with its lawsuit against the federal Brazilian government since 2002 and primarily related to judicial deposits made by the Brazilian subsidiary since 2006. While this has built up over more than 12 years, the amounts in any one year are not material. In its prior fiscal years, the Brazilian subsidiary incorrectly recorded the aforementioned US $1.3 million judicial deposit as an asset. The Company believes that the judicial deposit will be returned to it. U.S. GAAP requires that a contingent asset not be recorded until realized and as the collection of this asset is not certain, a decision was made to adjust the balance sheet to eliminate this asset.

There will be no impact on the net income (loss) or earnings (loss) per share for the years ended January 31, 2014 and 2015.