Summary of Principal Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Amounts of Noah Investment and its Subsidiaries included in Consolidated Financial Statements

The following amounts of Noah Investment and its subsidiaries were included in the Group’s consolidated financial statements:


	As of December 31,
	2013		2014
	$		$
Cash and cash equivalents		45,443,856		76,252,171
Restricted cash		165,188		161,171
Short-term investments		13,872,921		6,248,761
Accounts receivable, net of allowance for doubtful accounts		1,784,726		3,775,420
Amounts due from related parties		3,532,343		12,988,022
Deferred tax assets		604,377		1,841,876
Other current assets		1,195,057		1,438,158
Long-term investments		6,302,362		483,512
Investment in affiliates		18,893,396		39,662,915
Property and equipment, net		1,109,738		3,627,715
Other non-current assets		299,378		182,262
Total assets		93,203,342		146,661,983
Accrued payroll and welfare expenses		3,078,297		11,059,108
Income tax payable		2,167,268		4,518,462
Amounts due to the Group’s subsidiaries		34,660,524		27,289,801
Deferred revenue		8,377,979		6,105,780
Other current liabilities		961,140		4,475,798
Non-current uncertain tax position liabilities		1,044,580		1,019,175
Total liabilities		50,289,788		54,468,124


	As of December 31,
	2012*			2013			2014
	$			$			$
Revenue:
Third-party revenues
One-time commissions		31,859			1,171,253			13,072,826
Recurring service fees		1,200,863			6,070,762			18,163,030
Other service fees		957,745			4,489,280			3,953,060
Total third-party revenues		2,190,467			11,731,295			35,188,916
Related party revenues
One-time commissions		331,712			465,360			3,485,958
Recurring service fees		5,128,257			23,597,359			46,376,791
Other service fees		—			916,163			12,267,477
Total related party revenues		5,459,969			24,978,882			62,130,226
Total revenues		7,650,436			36,710,177			97,319,142
Less: business taxes and related surcharges		(416,525	)		(2,043,086	)		(5,457,850	)
Net revenues		7,233,911			34,667,091			91,861,292
Operating cost and expenses		(6,409,491	)		(13,836,442	)		(29,655,461	)
Other income		200,319			2,503,612			1,930,322
Net income		1,168,218			19,250,180			50,387,400
Net income attributable to Noah Holding Limited shareholders		1,086,355			17,644,412			47,379,799
Cash flows provided by operating activities **		29,624,846			40,988,172			39,849,513
Cash flows used in investing activities		(21,368,983	)		(15,809,672	)		(8,659,151	)
Cash flows provided by financing activities		2,178,103			6,265,618			220,017

*	Tianjin Gopher’s result of operations and cash flows are included in the presentation starting from March 2012.

**	Cash flows provided by operating activities in 2013 and 2014 include amounts due to the Group’s subsidiaries of $34,660,524 and $27,289,801.

Estimated Useful Lives of Property and Equipment

Property and equipment is stated at cost less accumulated depreciation, and is depreciated using the straight-line method over the following estimated useful lives:


		Estimated Useful Lives in Years
Leasehold improvements		Shorter of the lease term or expected useful life
Furniture, fixtures, and equipment		3—5 years
Motor Vehicles		5 years
Software		2—5 years

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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