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Receivables from Former Subsidiaries, trade payable to and advance from former subsidiaries

9 Months Ended

Jun. 30, 2015

Receivables from Former Subsidiaries, trade payable to and advance from former subsidiaries [Text Block]

5.	Receivables from Former Subsidiaries, trade payable to and advance from former subsidiaries

Receivable from former subsidiaries as of September 30, 2014 and June 30, 2015 consisted of the following:

		September 30,			June 30,
		2014			2015
Shenzhen BAK	$	1,856,356		$	-
BAK Tianjin		7,261,089			-
		9,117,445			-
Allowance for doubtful debts		(1,856,356	)		-
Carrying amount	$	7,261,089		$	-

Upon disposal of the Disposal Group in June 2014, the Disposal Group owed the Company a sum of $17.8 million. Management of the Company evaluated the collectability of the remaining amount and determined that $1.8 million should be impaired and offset against the gain on disposal of subsidiaries from discontinued operations for the year ended September 30, 2014. During the three and nine months ended June 30, 2015, the Company determined that $0.3 million and $1.8 million were recoverable. The recovery was treated as an adjustment to the gain on disposal of subsidiaries from discontinued operations for the three and nine months ended June 30, 2015.

Trade payable to a former subsidiary as of September 30, 2014 and June 30, 2015 consisted of the following:

		September 30,		June 30,
		2014		2015
BAK Tianjin	$	-	$	2,555,860

Balance at June 30, 2015 included payables for purchase of machinery and equipment of $2,025,273 from BAK Tianjin.

Advance from a former subsidiary as of September 30, 2014 and June 30, 2015 consisted of the following:

		September 30,	June 30,
		2014	2015
Shenzhen BAK	$	- $	77,134

This amount is unsecured, non-interest bearing and repayable on demand.