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FAIR VALUE | 12 Months Ended
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Feb. 28, 2013
FAIR VALUE |
FAIR VALUE | 12. FAIR VALUE (a) Assets and liabilities measured at fair value on a recurring basis The Group measured available-for-sale securities and long-term investments at fair value on a recurring basis as of February 29, 2012 and February 28, 2013. Available-for-sale securities In August 2007 and December 2009, the Group bought two securities in mutual funds named Wan Jia He Xie Financing Fund and Guo Du No. 1 An Xin Shou Yi, respectively. The available-for-sale securities have no contractual maturity dates and the Group can sell the investments at any time at the Group’s decision. The available-for-sale securities measured and recorded at fair value for which there are quoted prices in active markets on a recurring basis were as follows:
Balance as of February 28, 2010 |  | $ | 1,918,156 |
Disposed |  | (1,470,660 | )
Changes in fair value |  | 2,850 |
Foreign exchange difference |  | 15,363 |
Balance as of February 28, 2011 |  | $ | 465,709 |
Changes in fair value |  | (121,895 | )
Foreign exchange difference |  | 17,989 |
Balance as of February 29, 2012 |  | $ | 361,803 |
Changes in fair value |  | 34,331 |
Foreign exchange difference |  | 3,821 |
Balance as of February 28, 2013 |  | $ | 399,955 |
The following provides additional information concerning the Group’s available-for-sale securities:
|  | As of February 2 9, 201 2 |  | As of February 2 8, 201 3 |
|  |  |  | Gross |  | Gross |  |  |  |  |  | Gross |  | Gross |  |  |
|  |  |  | unrealized |  | unrealized |  |  |  |  |  | unrealized |  | unrealized |  |  |
|  | Cost |  | gains |  | (losses) |  | Fair value |  | Cost |  | gains |  | (losses) |  | Fair value |
Mutual fund |  | $ | 374,569 |  | $ | — |  | $ | (12,766 | ) | $ | 361,803 |  | $ | 378,390 |  | 21,565 |  | $ | — |  | $ | 399,955 |
Long-term investments The Group accounted for its investments in Century Mingde and a third-party online education platform using the fair value option which is how management assesses the return on these investments. Changes in fair value are reflected in the consolidated statement of operations and there were no material changes in fair value for the period ended February 28, 2013.
|  | As of |  | As of |
|  | February 2 9, |  | February 2 8, |
|  | 20 12 |  | 201 3 |
Long-term investment in Century Mingde (1) |  | $ | — |  | $ | 2,411,073 |
Long-term investment in a third-party online platform (2) |  | — |  | 3,080,000 |
|  | $ | — |  | $ | 5,491,073 |
(1) In March 2012, the Group acquired 6% equity interest in Century Mingde, a private company that engages in providing summer and winter camp training service in China with a cash consideration of $2,411,073. At the end of each reporting period, the Group calculates the fair value of these investments by using income approach discounted cash flow method. The discounted cash flow analysis requires the use of significant unobservable inputs (Level 3 inputs), including projected revenue, operating expenses, capital expenditures and a discount rate calculated based on the weighted average cost of capital. As of February 28, 2013, the net present value derived from such discounted cash flow model based on a discount rate of 19% approximated the initial purchase price. (2) In February 2013, the Group acquired 16.85% equity interest in a third-party online education platform, a private company incorporated in the Cayman Islands, by purchasing 2,200,000 Series A preferred shares for a total cash consideration of $3,080,000. As the transaction date was close to the fiscal year end, the initial purchase price is considered the fair value of this investment. For the year ended February 28, 2013, the Group did not recognize any changes in fair value of long-term investments in the consolidated statements of operation. As of February 29, 2012 and February 28, 2013, information about inputs for the fair value measurements of the Group’s assets that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows:
|  | Fair Value Measurement at Reporting Date Using |
|  |  |  | Quoted Prices in |  | Significant Other |  | Significant |
|  | February 29, |  | Active Market for |  | Observable |  | Unobservable |
Description |  | 2012 |  | Identical Assets |  | Inputs |  | Inputs |
|  |  |  | (Level 1) |  | (Level 2) |  | (Level 3) |
Available for sale securities |  | $ | 361,803 |  | $ | 361,803 |  | — |  | — |
Long-term investments |  | — |  | — |  | — |  | — |
Total |  | $ | 361,803 |  | $ | 361,803 |  | — |  | — |
|  | Fair Value Measurement at Reporting Date Using |
|  |  |  | Quoted Prices in |  | Significant Other |  | Significant |
|  | February 28, |  | Active Market for |  | Observable |  | Unobservable |
Description |  | 201 3 |  | Identical Assets |  | Inputs |  | Inputs |
|  |  |  | (Level 1) |  | (Level 2) |  | (Level 3) |
Available for sale securities |  | $ | 399,955 |  | $ | 399,955 |  | — |  | — |
Long-term investments |  | $ | 5,491,073 |  | — |  | — |  | $ | 5,491,073 |
Total |  | $ | 5,891,028 |  | $ | 399,955 |  | — |  | $ | 5,491,073 |
(b) Assets and liabilities measured at fair value on a nonrecurring basis - continued The Group measured the goodwill at fair value on a nonrecurring basis when it is annually evaluated or whenever events or changes in circumstances indicate that carrying amount of a reporting unit exceeds its fair value as a result of the impairment assessments. The Group has recognized impairment loss related to goodwill for the year ended February 29, 2012, as set out in Note 9. The fair value was determined using models with significant unobservable inputs (Level 3 inputs), primarily the management projection of discounted future cash flow and the discount rate

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15A -Subparagraph a-d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15C, 15D -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 3, 10, 14, 15 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32, 33, 34 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. 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Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15B -Subparagraph a, b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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