XML 40 R17.htm IDEA: XBRL DOCUMENT v3.19.1
Deferred Tax Liability, Net
 12 Months Ended
Dec. 31, 2018
Deferred Tax Liability, Net [Abstract]  
DEFERRED TAX LIABILITY, NET

11. DEFERRED TAX LIABILITY, NET

 

Deferred tax assets resulted from asset impairment loss which was temporarily non-tax deductible for tax purposes but expensed in accordance with US GAAP, interest income in sales-type leases which was recognized as income for tax purposes but not for book purpose as it did not meet revenue recognition in accordance with US GAAP, accrued employee social insurance that can be deducted for tax purposes in the future, and the difference between tax and accounting basis of cost of fixed assets which was capitalized for tax purposes and expensed as part of cost of systems in accordance with US GAAP. Deferred tax liability arose from the difference between tax and accounting basis of net investment in sales-type leases.

   

As of December 31, 2018 and 2017, deferred tax liability consisted of the following:

 

   2018   2017 
Deferred tax asset — current (accrual of employee social insurance)  $186,779   $189,617 
Deferred tax liability — current (net investment in sales-type leases)   (1,639,057)   (1,520,537)
Deferred tax liability, net of current deferred tax asset  $(1,452,278)  $(1,330,920)
           
Deferred tax asset — noncurrent (depreciation of fixed assets)  $6,176,064   $7,675,645 
Deferred tax asset — noncurrent (asset impairment loss)   15,003,497    450,706 
Deferred tax asset — noncurrent (capitalized interest on CIP)   2,531,120    2,574,749 
Deferred tax asset---noncurrent (interest income in sales-type leases)   658,307    - 
Deferred tax asset---noncurrent (US NOL)   3,114,083    14,321,617 
Deferred tax asset---noncurrent (PRC NOL)   1,617,861    - 
Less: valuation allowance on deferred tax assets   (21,353,059)   (14,321,617)
Deferred tax assets --- noncurrent, net   7,747,873    10,701,100 
Deferred tax liability — noncurrent (net investment in sales-type leases)   (9,335,941)   (11,527,594)
Deferred tax liability, net of noncurrent deferred tax assets  $(1,588,068)  $(826,494)
           
Total Deferred tax liability, noncurrent per ASU 2015-17  $(3,040,346)  $(2,157,414)