Significant Accounting Policies [Text Block] | 3. Summary of significant accounting policies a) Basis of presentation The unaudited condensed consolidated interim financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The unaudited condensed consolidated interim financial information as of March 31, 2018 three March 31, 2018 2017 2017 10 In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s condensed consolidated financial position as of March 31, 2018, three March 31, 2018 2017, three March 31, 2018 2017, not b) Principles of consolidation The condensed consolidated interim financial statements include the financial statements of all the subsidiaries and VIEs of the Company. All accounts and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation. c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. d) Foreign currency translation The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the condensed consolidated financial statements are as follows: March 31, 2018 December 31, 2017 Balance sheet items, except for equity accounts 6.2881 6.5342 Three Months Ended March 31, 2018 2017 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.3632 6.8861 No e) Advertising costs Advertising costs for the Company’s own brand building are not three March 31, 2018 2017, US$389,000 US$510,000, f) Research and development expenses The Company accounts for the cost of developing and upgrading technologies and platforms and intellectual property that are used in its daily operations in research and development cost. Research and development costs are charged to expense when incurred. Expenses for research and development for the three March 31, 2018 2017 US$193,000 US$395,000, g) Revenue recognition On January 1, 2018, 606, January 1, 2018. In accordance with ASC Topic 606, five 1 2 3 4 5 The Company’s contracts with customers do not significant financing component, variable consideration, nor any clause concerning with returns, refunds or other similar obligations. The Company does not 606 Online advertising placement service/TV advertising service For online advertising placement service contracts and TV advertising service contracts that are established based on a fixed price scheme with the related advertisement placements obligation, the Company provides advertisement placements in specified locations on the Company’s advertising portals for agreed periods and/or place the advertisements onto the Company’s purchased advertisement time during specific TV programs for agreed periods. Revenue is recognized ratably over the period the advertising is provided and, as such, the Company considers the services to have been delivered (“over time”). Sales of effective sales lead information For advertising contracts related to purchase of effective sales lead information, revenue is recognized based on a fixed price per sales lead and the quantity of effective sales lead, when information is delivered and accepted by customers (“point in time”). Search engine marketing and data service Revenue from search engine marketing and data services is recognized on a monthly basis based on the direct cost consumed through search engines for providing such services with a premium (“over time”). The Company recognizes the revenue on a gross basis, because the Company determines that it is a principle in the transaction who control the goods or services before they are transferred to the customers. All of the Company’s revenues are generated from the PRC. The following tables present the Company’s revenues disaggregated by products and services and timing of revenue recognition: Three Months Ended March 31, 2018 2017 US$(’000) US$(’000) (Unaudited) (Unaudited) Internet advertising and data service --online advertising placement 1,597 1,902 --sales of effective sales lead information 122 390 Search engine marketing and data service 6,443 4,972 TV advertising service 91 - Others 7 - Total revenues 8,260 7,264 Three Months Ended March 31, 2018 2017 US$(’000) US$(’000) (Unaudited) (Unaudited) Revenue recognized over time 8,138 6,874 Revenue recognized at a point in time 122 390 Total revenues 8,260 7,264 Contract costs For the three March 31, 2018, not 606, Contract balances The Company evaluates overall economic conditions, its working capital status and customer specific credit and negotiates the payment terms of a contract with individual customer on a case by case basis in its normal course of business. Advances received from customers related to unsatisfied performance obligations are recoded as contract liabilities (advance from customers), which will be realized as revenues upon the satisfaction of performance obligations through the transfer of related promised goods and services to customers. For contracts without a full or any advance payments required, the Company bills the customers any unpaid contract price immediately upon satisfaction of the related performance obligations when revenue is recognized, and the Company normally receives payment from customers within 90 The Company does not not The Company’s contract liabilities consist of advance from customers related to unsatisfied performance obligations in relation to internet adverting service, search engine marketing service, as well as TV advertising service. The Company’s contract liabilities are reported in a net position on a customer-by-customer basis at the end of each reporting period. All contract liabilities are expected to be recognized as revenue within one three March 31, 2018: Advance from customers US$(’000) Balance as of January 1, 2018 3,559 Revenue recognized from beginning contract liability balance (3,113 ) Advances received from customers related to unsatisfied performance obligations 1,564 Balance as of March 31, 2018 (Unaudited) 2,010 For the three March 31, 2018, no Transaction price allocated to remaining performance obligation The Company has elected to apply the practical expedient in paragraph ASC Topic 606 10 50 14 not March 31, 2018, one h) Impact of recently issued accounting pronouncements In January 2017, No. 2017 04, 350 2 2, not zero 2 zero first first December 15, 2019. January 1, 2017. In July 2017, No. 2017 11, 260 480 815 no no 260 470 20, 260 480 not December 15, 2018. December 15, 2019, December 15, 2020. not not January 1, 2018, January 1, 2018 no not In February 2018, 2018 02: 220 not December 15, 2018, In March 2018, 2018 05: 740 No. 118”. No. 118, 740, December 22, 2017 - |