Condensed Parent Company Financial Information
|12 Months Ended|
Dec. 31, 2021
|Condensed Financial Information Disclosure [Abstract]|
|CONDENSED PARENT COMPANY FINANCIAL INFORMATION||
NOTE 16 – CONDENSED PARENT COMPANY FINANCIAL INFORMATION
The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Company’s China-based operating subsidiaries.
The condensed parent company financial statements have been prepared using the same accounting principles and policies described in the notes to the consolidated financial statements, with the only exception being that the parent company accounts for its subsidiaries. Refer to the consolidated financial statements and notes presented above for additional information and disclosures with respect to these financial statements.
Condensed Parent Company Balance Sheets
Condensed Parent Company Statements of Operations
Condensed Parent Company Statements of Cash Flows
Note 1. Basis of Preparation
The condensed financial information of the Company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Company used the equity method to account for investments in its subsidiaries.
Note 2. Investments in Subsidiaries
The Company and its subsidiaries were included in the consolidated financial statements where the inter-company balances and transactions were eliminated upon consolidation. For purpose of the Company’s stand-alone financial statements, its investments in subsidiaries were reported using the equity method of accounting. The Company’s share of income and losses from its subsidiaries were reported as equity in earnings of subsidiaries in the accompanying parent company financial statements.
Note 3. Retained Earnings
The retained earnings in the Company’s stand-alone financial statements do not represent the distributable earnings of the Group as it includes the statutory reserve of its subsidiaries in PRC of $15,751,712 and $15,751,712 as of December 31, 2021 and 2020, respectively.
The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef