RE:RE:RE:RE:RE:WORTHLESS PAPERHi eInvestor, good to see you have some of the confusion cleared up. So I assume that you are clear that the dilution noted in note 10 is related to Yangshan and the $467,725 writedown are unrelated?
Now regarding the other concerns. If you refer to note 6 in the financials, they lay out related party transactions, of particular importance is this note stating upon consolidation, any transactions between related subsidiaries are elimated, as any corporation with good IFRS accounting policy would do.
6. RELATED PARTY TRANSACTIONS
Balances and transactions between the Corporation and its subsidiaries, which are related parties of the Corporation, have
been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Corporation and other related parties are disclosed below.
Now as to the detail of the $467,725 amount. I am just guessing at what this is, but if you look throughout the past financial statements there has always been positive and negative amounts in this line item (more negative than positive). My guess is that it's the loss they have to take from the various minority holdings they have that are operating at a loss. I don't think there is anything scammy about it. It's just the nature of the business. They have 16 different subsidiaries and like anything you win some and you lose some. Looking at the beginning balance of $800K from January 2013 and now it's almost $1.5M, on average they've been winning much more than losing. I really think you are looking far too deep into this one number. ..............................................................June 30, 2014 .............December 31, 2013
Opening equity accounted investments .......$1,959,077 ...................$800,402
Gains on share dilution in associated company - ...........................1,082,146
Gain (loss) sharing of associated company ....(467,725) .......................68,143
Foreign exchange ........................................1,444 ..............................8,386
Ending equity accounted investments ..........$1,492,796................. $1,959,077