HOME PURCHASE DOWN PAYMENT	9 Months Ended
HOME PURCHASE DOWN PAYMENT	May 31, 2012
Home Purchase Down Payment
HOME PURCHASE DOWN PAYMENT	NOTE 12 – HOME PURCHASE DOWN PAYMENT According to the Company’s Employee Welfare Policy, the Company may sign a home purchase agreement with teachers which would allow teachers to purchase home property at a discounted market rate. Pursuant to the home purchase agreement between the Company and teachers, teachers were given the right to purchase a home property upon their 8th year of service. There were two payment options: (1) one-time full payment of the home purchase price based on the signed agreement; or (2) RMB 20,000 down payment with remaining balance to be paid in 8 equal annual installments until their 8th year of service. Those teachers who selected option (2) would be charged an interest of 7% if they do not make payment on time during the 8 year period. If teachers resign or leave the school for any reasons, they will be entitled to a refund based on the terms of the home purchase agreement. There were minimal refunds for the nine month and three month periods ended May 31, 2012 and May 31, 2011. For accounting purposes, cash received from teachers through payment options (1) and (2) and late interest payments are recorded as deposits at the time of receipt. The Company recognizes profit when the sale is consummated. The Company records the home purchase transactions in accordance to the deposit method pursuant to FASB ASC Topic 360-20, Real Estate Sales. Under the deposit method, the seller does not recognize any profit, does not record notes receivable, and continues to report in its financial statements the property which has been assumed by the buyer. Cash received from the buyer, including the initial investment and subsequent collections of principal and interest, is reported as a deposit. Interest collected that is subject to refund and is included in the deposit account before a sale is consummated is accounted for as part of buyer’s initial investment at the time the sale is consummated. There were no apartments sold for the nine-month and three-month periods ended May 31, 2012 and May 31, 2011, and as such the Company recognized no income from selling apartments. As of May 31, 2012 and August 31, 2011, home deposits were $930,366 and $878,668, respectively.

China Bilingual Technology & Education Group Inc. 10-Q