Equity Method Investment
|9 Months Ended|
Sep. 30, 2015
|Equity Method Investment [Abstract]|
|EQUITY METHOD INVESTMENT||
NOTE 8 – EQUITY METHOD INVESTMENT
At September 30, 2015 and December 31, 2014, equity method investment amounted to $54,733,971 and $15,964,812, respectively. The investment represents the Company’s subsidiary, Pingtan Fishing’s interest in Global Deep Ocean Fishing (Pingtan) Industrial Limited (the “Global Deep Ocean”). On June 12, 2014, Pingtan Fishing incorporated Global Deep Ocean with other two unrelated companies in PRC. Pingtan Fishing and the other investing companies accounted for 35% and 65% of the total ownership, respectively. Total registered capital of Global Deep Ocean is RMB 1 billion (approximately $157.4 million) and Pingtan Fishing needs to contribute RMB 350 million (approximately $55.1 million). As of September 30, 2015, Pingtan Fishing has contributed RMB 348 million (approximately $54.8 million). No company holds 50% or more of the total shares. Global Deep Ocean will process, cold storage, and transport deep ocean fishing products.
The Company treats the equity investment in the consolidated financial statements under the equity method. Under the equity method, the investment is initially recorded at cost, adjusted for any excess of the Company’s share of the incorporated-date fair values of the investee’s identifiable net assets over the cost of the investment (if any). Thereafter, the investment is adjusted for the post incorporation change in the Company’s share of the investee’s net assets and any impairment loss relating to the investment. For the three and nine months ended September 30, 2015, the Company’s share of Global Deep Ocean’s net loss was $34,187 and $37,545, respectively, which was included in loss on equity method investment in the accompanying unaudited consolidated statements of income and comprehensive income.
The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.
Reference 1: http://www.xbrl.org/2003/role/presentationRef