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VARIABLE INTEREST ENTITY (“VIE”)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITY (“VIE”)

3. VARIABLE INTEREST ENTITY (“VIE”)

SEA is a trading company incorporated on March 4, 2004, under the laws of Malaysia. SEA provided majority of ASL’s purchases. Its equity at risk was insufficient to finance its activities and 100% of its business is transacted with ASL. Therefore, it was considered to be a VIE and ASL is the primary beneficiary since it has both of the following characteristics:

	a.	The power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and
	b.	The obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

Accordingly, the accounts of SEA is consolidated in the accompanying financial statements.

The carrying amount of the VIE’s assets and liabilities were as follows:

SCHEDULE OF VARIABLE INTEREST ENTITY

		As of
		March 31, 2022				December 31, 2021
Current assets		$	14,070			$	18,850
Current liabilities			(51,198	)			(51,272	)
Net deficit		$	(37,128	)		$	(32,422	)

		As of
		March 31, 2022				December 31, 2021
Current assets:
Cash		$	12,532			$	17,493
Prepaid taxes			1,538				1,357
Total current assets		$	14,070			$	18,850
Current liabilities:
Accounts payable – intercompany		$	49,376			$	49,724
Other payables and accrued liabilities			1,822				1,548
Total current liabilities		$	51,198			$	51,272
Net deficit		$	(37,128	)		$	(32,422	)

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

3. VARIABLE INTEREST ENTITY (“VIE”) (Continued)

The summarized operating results of the VIE’s are as follows:

		2022				2021
		For the three months ended March 31,
		2022				2021
Operating revenues		$	-			$	-
Gross profit		$	-			$	-
Loss from operations		$	(4,942	)		$	(6,948	)
Net loss		$	(4,942	)		$	(11,861	)

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- References

No definition available.

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- Definition

The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-URI https://asc.fasb.org/topic&trid=2197479

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