SEC Form 17-A: Annual Report - the solid group inc website

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Non-compounding interest and other cash flows resulting from holding financial assets
are recognized in profit or loss when earned, regardless of how the related carrying
amount of financial assets is measured.
The financial assets are derecognized when the rights to receive cash flows from the
financial instruments expire or when substantially all of the risks and rewards of
ownership have been transferred.
2.6 Merchandise Inventories and Supplies
Inventories are valued at the lower of cost and net realizable value. Costs incurred in
bringing each product to its present location and condition is determined as follows:
(a)
(b)
Raw materials, service parts, supplies and others – on a moving average method. The
cost of raw materials, service parts, supplies and others include all costs directly
attributable to the acquisitions, such as the purchase price, import duties and
other taxes that are not subsequently recoverable from taxing authorities.
Merchandise and finished goods, and work-in-process – on a moving average method; cost
includes direct materials and labor and a proportion of manufacturing overheads
based on normal operating capacity.
Net realizable value of finished goods and work-in-process inventories is the estimated
selling price in the ordinary course of business, less the estimated costs of completion
and the estimated costs necessary to make the sale. Net realizable value of raw
materials, service parts, supplies and others is the current replacement cost.
2.7 Real Estate Inventories
Real estate inventories consist of the following:
(a)
Land and Land Development Costs
Land and land development costs includes the acquisition cost of raw land
intended for future development and sale, including other costs and expenses
incurred to effect the transfer of property title are included in this account.
(b)
Property Development Costs
Property development costs include the cost of land used as a building site for a
condominium project and the accumulated costs incurred in developing and
constructing the property for sale.
Land and land development costs and property development costs are carried at the
lower of cost and net realizable value. Net realizable value is the estimated selling price
in the ordinary course of business, less estimated costs of completion and the estimated
costs necessary to make the sale.