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24. Restatement of Financial Statements | 12 Months Ended
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Dec. 31, 2014
Restatement of Financial Statements | Subsequent to the issuance of the Company’s consolidated financial statements as of and for the year ended December 31, 2014 on April 29, 2015, management identified errors in the Company’s previously issued consolidated financial statements. The Company has incorrectly accounted for the interest in an affiliate for the year ended December 31, 2014 dated April 29, 2015. The Company recognized US$740,000 of equity in income of an affiliate, Zhejiang Tianlan Environmental Protection Technology Co. Limited, for the year ended December 31, 2014 (See note 10). Management considered this amount was overstated by US$287,000 due to the fact that Zhejiang Tianlan Environmental protection Technology Company Limited had restated its consolidated financial statement of the year ended December 31, 2014 on April 28, 2016. As a result, the interest in an affiliate should decrease US$ 287,000 as of December 31, 2014, the equity in income of affiliates would also decrease by US$ 287,000 and the net loss should be increased by US$287,000 for the year ended December 31, 2014. The impact of the restatement on the December 31, 2014 financial statements is reflected in the following tables: CONSOLIDATED BALANCE SHEETS
|  | December 31, 2014 |
|  | As Previously Reported |  |  | As Restated |
Total Assets |  |  | 23,686 |  |  |  | 23,399 |
Total stockholders’ equity |  |  | 17,817 |  |  |  | 17,530 |
Total liabilities and stockholders’ equity |  |  | 23,686 |  |  |  | 23,399 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|  | For the year Ended December 31, 2014 |
|  | As Previously Reported |  |  | As Restated |
Equity in income of affiliates |  |  | 892 |  |  |  | 605 |
Net Loss |  |  | (5 | ) |  |  | (292 | )
Comprehensive loss |  |  | (20 | ) |  |  | (307 | )
Basic and diluted loss per common share |  | $ | US0.08 |  |  | $ | (US0.06 | )
CONSOLIDATED STATEMENTS OF CASH FLOW
|  | For the year Ended December 31, 2014 |
|  | As Previously Reported |  |  | As Restated |
Net Profit / (Loss) |  |  | 164 |  |  |  | (123 | )
Equity in profit of affiliates |  |  | (892 | ) |  |  | (605 | )
ZHEJIANG TIANLAN |
Restatement of Financial Statements | Subsequent to the issuance of the Company’s consolidated financial statements for the year ended December 31, 2014 on April 29, 2015, management identified errors in the Company’s previously issued consolidated financial statements. The Company has incorrectly accounted for: (i) the recognition of CIP at the year ended December 31, 2014; (ii) overstated account and other receivables, other tax payable and income tax payable as of December 31, 2014. The Company has an error on the accounting treatment regarding one of their construction projects from selling purpose to self-operation purpose in 2014. Therefore the income recognized for this project should be reversed and all the cost related to this project should recognize as a CIP at the year ended December 31, 2014. The Company recognized RMB 77,841,000 in revenues of this project at the year ended December 31, 2014 in previous issue consolidated financial statement. Management considered this amount was overstated base on the changing of the project. As a result, the account receivable and other receivable related to this project have been overstated for RMB 10,000 and 13,596,000 respectively. The Company recognized RMB 65,400,000 as cost of this project at the year ended December 31, 2014. Management considered this amount should be recognized as a CIP. As a result, the CIP would increase by RMB 65,400,000 as of December 31, 2014. Moreover, the Company identified that the income tax was also overstated by RMB1,791,000 for the year ended December 31, 2014 base on the above amendment. The impact of the restatement on the December 31, 2014 financial statements is reflected in the following tables: CONSOLIDATED BALANCE SHEETS
|  | December, 2014 |
|  | As Previously Reported |  |  | As Restated |
Total current assets |  |  | 392,278 |  |  |  | 379,718 |
Accounts receivable, net (note 6) |  |  | 156,618 |  |  |  | 156,608 |
Prepayments and other current assets (note 7) |  |  | 190,409 |  |  |  | 177,859 |
Property, plant and equipment (Note 9) |  |  | 96,524 |  |  |  | 161,924 |
Total Assets |  |  | 500,938 |  |  |  | 553,778 |
Other payables and accrued expenses |  |  | 49,203 |  |  |  | 113,438 |
Other taxes payable |  |  | 10,681 |  |  |  | 8,902 |
Income tax payable |  |  | 805 |  |  |  | 60 |
Total liabilities |  |  | 335,627 |  |  |  | 397,338 |
Total stockholders’ equity |  |  | 165,311 |  |  |  | 156,440 |
Total liabilities and stockholders’ equity |  |  | 500,938 |  |  |  | 553,778 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|  | For the year Ended December 31, 2014 |
|  | As Previously Reported |  |  | As Restated |
Revenue |  |  | 474,265 |  |  |  | 396,424 |
Cost of revenue |  |  | (380,955 | ) |  |  | (313,776 | )
Income taxes |  |  | (2,559 | ) |  |  | (768 | )
Net income |  |  | 22,879 |  |  |  | 14,008 |
CONSOLIDATED STATEMENTS OF CASH FLOW
|  | For the year Ended December 31, 2014 |
|  | As Previously Reported |  |  | As Restated |
Net income |  |  | 22,879 |  |  |  | 14,008 |
Accounts receivable, net |  |  | (9,491 | ) |  |  | (9,481 | )
Prepayments and other current assets |  |  | (33,249 | ) |  |  | (20,699 | )
Other payables and accrued expenses |  |  | (27,160 | ) |  |  | 37,075 |
Other tax payable |  |  | 2,813 |  |  |  | 1,034 |
Income tax payable |  |  | 296 |  |  |  | (449 | )
Net cash provided by/(used in) operating activities |  |  | 34,928 |  |  |  | 100,328 |
Purchase of property, plant and equipment |  |  | (52,566 | ) |  |  | (117,966 | )
Net cash used in investing activities |  |  | (51,223 | ) |  |  | (116,623 | )

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- Definition The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=56949863&loc=d3e22644-107794 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 45 -Paragraph 23 -URI http://asc.fasb.org/extlink&oid=6368906&loc=d3e21914-107793 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=56949863&loc=d3e22595-107794 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=56949863&loc=d3e22499-107794 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 1.N.Q3) -URI http://asc.fasb.org/extlink&oid=26874127&loc=d3e30840-122693 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 1 -Section N + Details
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