Note 13 - Variable Interest Entities ("vies") (Tables)

3 Months Ended

Jul. 31, 2016

The total consolidated VIE assets and liabilities reflected on the Company's balance sheet are as follows:

	July 31, 2016	April 30, 2016
Assets
Cash and cash equivalents	$22,571	$161,340
Accounts receivable	634,182	640,656
Other receivables and deposits	46,086	185,144
Property, plant and equipment, net	479,920	413,072
Intangible assets, net	361,940	381,670

Total assets (not include amount due from intra-group companies and related parties)	1,544,699	1,781,882

Liabilities
Deferred income	972,557	1,145,770
Accounts payable	547,752	755,461
Accrued expenses and other payables	2,095,722	2,081,052
Taxes payable	73,443	18,332
Total liabilities (not include amount due to intra-group companies and related parties)	3,689,474	4,000,615

The results of VIEs are as follows, and are included in the consolidated statements of income of the Company:

	Three months ended July 31, 2016	Three months ended July 31, 2015

Revenue	$755,007	$1,683,697
Other income and gains	151	(12,028
Service costs (Not including service costs payable to intra-group companies)	(459,397)	(1,950,100)
Personnel cost	(58,570)	(93,417)
Depreciation expense	(9,801)	(73,168)
Amortization expense	(11,397)	(12,343)
Administrative and other expenses	(123,744)	(109,646)

Income/ (Loss) before provision for income taxes (Not including service costs payable to intra-group companies)	92,249	(567,005)
Provision for income taxes	(48,167)	(19,931)

Net income/ (loss)	44,082	(586,936)

- 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.

+ References + Details

REDtone Asia Inc 10-Q