INTANGIBLE ASSETS (Intangible assets, excluding land use rights)
12 Months Ended
Dec. 31, 2013
Intangible assets, excluding land use rights
 
Intangible assets  
INTANGIBLE ASSETS

8. INTANGIBLE ASSETS

 

In connection with the acquisition of Binglangjiang, the Company acquired a legal right to develop and operate Phase II of Binglangjiang’s hydroelectric power project. The development right allows the Company to expand the power generation capacity of Binglangjiang by utilizing the existing water dam of Binglangjiang, which has a useful life of 30 years. The Company recognized the fair value of US$2,909 of the development right as a separate intangible asset apart from goodwill in accordance with ASC 805. The estimated useful life of the development right is 30 years.

 

In connection with the acquisition of Jinling, the Company acquired a right to use the dam of the Dongguan hydropower project which has a useful life of 40 years. The Company recognized the fair value of US$1,759 for the dam use right as a separate intangible asset apart from goodwill in accordance with ASC 805. The estimated useful life of the dam use right of Dongguan is 40 years.

 

During the year ended December 31, 2013, the Company acquired financial system software, which has an estimated useful life of 5 years, for US$90.

 

Intangible assets and their related accumulated amortization as of December 31, 2012 and 2013 are as follows:

 

 

 

December 31, 2012

 

 

 

Gross
Carrying
Value

 

Accumulated
Amortization

 

Foreign Currency
Translation
Adjustment

 

Net
Carrying
Value

 

Development right of Binglangjiang Phase II

 

2,909

 

(629

)

619

 

2,899

 

Dam use right of Dongguan

 

1,759

 

(90

)

92

 

1,761

 

Total

 

4,668

 

(719

)

711

 

4,660

 

 

 

 

December 31, 2013

 

 

 

Gross
Carrying
Value

 

Accumulated
Amortization

 

Foreign Currency
Translation
Adjustment

 

Net
Carrying
Value

 

Development right of Binglangjiang Phase II

 

2,909

 

(749

)

706

 

2,866

 

Dam use right of Dongguan

 

1,759

 

(137

)

146

 

1,768

 

Software

 

90

 

(11

)

1

 

80

 

Total

 

4,758

 

(897

)

853

 

4,714

 

 

Amortization expenses from continuing operations for the years ended December 31, 2011, 2012 and 2013 were US$161, US$165 and US$178, respectively, which have been reported in the following accounts:

 

 

 

For the Years Ended December 31,

 

 

 

2011

 

2012

 

2013

 

 

 

US$

 

US$

 

US$

 

Cost of revenues

 

(45

)

(45

)

(168

)

General and administrative expenses

 

(116

)

(120

)

(10

)

Total

 

(161

)

(165

)

(178

)

 

The estimated annual amortization expenses for each of the five succeeding fiscal years are as follows:

 

 

 

US$

 

2014

 

185

 

2015

 

185

 

2016

 

185

 

2017

 

185

 

2018

 

177