| SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
| Dec. 31, 2013 |
| SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ' |
| Basis of presentation | ' |
| (a) Basis of presentation |
|
| The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). |
|
| The accompanying consolidated financial statements contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to operate profitably, to generate cash flows from operations, and the Company’s ability to pursue financing arrangements, including the renewal or rollover of its bank borrowings, to support its working capital requirements. |
|
| As of December 31, 2013, the Company’s total consolidated current liabilities exceeded total consolidated current assets by $18,842,614. As of the same date, the Company had cash and cash equivalents of $486,685,563 and short-term bank borrowings, including current portion of long-term bank borrowings of $935,589,882. The liquidity of the Company is primarily depending on its ability to maintain adequate cash flows from operations, to renew its short-term bank loans and to obtain adequate external financing to support its working capital and meet its obligations and commitments when they become due. |
|
| The Company has carried out a review of its cash flow forecast for the twelve months ending December 31, 2014. Based on such forecast, management believes that adequate sources of liquidity exist to fund the Company’s working capital and capital expenditures requirements, and to meet its short term debt obligations and other liabilities and commitments as they become due. In preparing the cash flow forecast, management has considered historical cash requirements of the Company, as well as other key factors, including its ability to renew its short-term bank borrowings during 2014. Historically, the Company has renewed or rolled over substantially all its short-term bank loans upon the maturity date of the loans. From January 1, 2014 to March 28, 2014, the Company renewed short-term bank borrowings of $198 million that matured during this period. Management believes the assumptions used in the cash forecast are reasonable. |
| Principles of consolidation | ' |
| (b) Principles of consolidation |
|
| The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated upon consolidation. For consolidated subsidiaries where the Company’s ownership in the subsidiary is less than 100%, the equity interest not held by the Company is shown as non-controlling interests. |
| Use of estimates | ' |
| (c) Use of estimates |
|
| The preparation of the consolidated financial statements in conformity with US GAAP requires the Company to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include the allowance made for doubtful accounts receivable, provision for losses on advances to suppliers, inventory write-downs, the estimated useful lives of long-lived assets, the impairment of long-lived assets and project assets, fair value of foreign currency derivatives, accrued loss on firm purchase commitment, the accrual for uncertain tax positions and valuation allowance of deferred income tax assets, accrued warranty expenses, and the grant-date fair value of share-based compensation awards and related forfeiture rates. Changes in facts and circumstances may result in revised estimates. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions. |
| Cash and cash equivalents | ' |
| (d) Cash and cash equivalents |
|
| Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal or use, and which have maturities of three months or less when purchased. |
| Restricted cash | ' |
| (e) Restricted cash |
|
| Restricted cash is comprised of bank deposits held as collateral for letters of credit, commercial paper, bank drafts and bank borrowings as well as amounts held by counterparties under forward contracts. These deposits carry fixed interest rates and will be released when the bank borrowings are repaid or the related letters of credit, commercial paper and bank drafts are settled by the Company. The Company considers the restricted cash balances as equivalent to an investment whose return of principal requires the satisfaction of conditions (i.e., repayment of bank borrowings or settlement of letters of credit, commercial paper and bank drafts). Therefore, deposits and withdrawals of principal balances in restricted cash accounts represent the creation or return of investment and, accordingly, the Company has presented such deposits and withdrawals as investing activities in the consolidated statements of cash flows. |
| Fair value of financial instruments | ' |
| (f) Fair value of financial instruments |
|
| The Company estimates fair value of financial assets and liabilities as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants. The fair value measurement guidance establishes a three-level fair value hierarchy that prioritizes the inputs into the valuation techniques used to measure fair value. |
|
| · Level 1 — Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. |
|
| · Level 2 — Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. |
|
| · Level 3 — Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Company’s own assumptions about the assumptions that market participants would use to price an asset or liability. |
|
| When available, the Company uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Company measures fair value using valuation techniques that use, when possible, current market-based or independently-sourced market parameters, such as interest rates and currency rates. |
| Investment in equity affiliates | ' |
| (g) Investment in equity affiliates |
|
| Affiliated companies are entities over which the Company has significant influence, but which it does not control. The Company generally considers an ownership interest of 20% or higher to represent significant influence. Investments in equity affiliates are accounted for by the equity method of accounting. Under this method, the Company’s share of the profits or losses of affiliated companies is recognized in other income and its shares of movements in other comprehensive income are recognized in other comprehensive income. Unrealized gains on transactions between the Company and its affiliated companies are eliminated to the extent of the Company’s interest in the affiliated companies; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Company’s share of losses in an affiliated company equals or exceeds its interest in the affiliated company, the Company does not recognize further losses, unless the Company has incurred obligations or made payments on behalf of the affiliated company. An impairment loss is recorded when there has been a loss in value of the investment that is other-than-temporary. As of December 31, 2012 and 2013, the Company has equity investment in affiliates with a carrying amount of $10,960,391 and $11,769,730, respectively. No impairments were recorded for the years ended December 31, 2011, 2012 and 2013. |
| Receivables and Allowance for Doubtful Accounts | ' |
| (h) Receivables and Allowance for Doubtful Accounts |
|
| The Company maintains allowances for doubtful accounts for uncollectible accounts receivable. Estimated anticipated losses from doubtful accounts are based on aging, historical collection history, and other factors. The Company does not have any off-balance-sheet credit exposure related to its customers. |
| Inventories | ' |
| (i) Inventories |
|
| The Company reports inventories at the lower of cost or market. The Company determines cost on a weighted-average basis. These costs include direct material, direct labor, tolling manufacturing costs, and fixed and variable indirect manufacturing costs, including depreciation and amortization. |
|
| The Company regularly reviews the cost of inventory and records a lower of cost or market write-down if any inventories have a cost in excess of market value. In addition, the Company regularly evaluates the quantity and value of its inventory in light of current market conditions and market trends and record write-down for any quantities in excess of demand and for any product obsolescence. This evaluation considers historic usage, expected demand, market price, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer concentrations, product merchantability and other factors. If, based on assumptions about expected demand and market conditions, the Company determines that the cost of inventories exceeds its estimated market value or inventory is excess or obsolete, it records a write-down equal to the difference between the cost of inventories and the estimated market value. The Company also writes off silicon materials that may not meet its required specifications for inclusion in its manufacturing process. These materials are periodically sold for scrap or nominal amount. |
| Project assets | ' |
| (j) Project assets |
|
| Project assets consist primarily of costs relating to solar power projects in various stages of development that are capitalized prior to the sale of the solar power project. These costs include modules, installation and other development costs, such as legal, consulting and permitting. While the project assets are not constructed for a specific customer, the Company intends to either sell the project assets upon their completion (“project assets held for sale”) or operate the project assets by itself (“project assets held for use”). |
|
| Project assets held for sale consisted of the following at December 31, 2012 and 2013: |
|
| | December 31, | | December 31, | | | | | | | |
| | 2012 | | 2013 | | | | | | | |
| | $ | | $ | | | | | | | |
| Project assets — Module cost | | 9,524,845 | | 43,725,858 | | | | | | | |
| Project assets — Development | | 8,344,913 | | 15,185,471 | | | | | | | |
| Project assets — Others | | 13,488,680 | | 20,490,096 | | | | | | | |
| Total project assets | | 31,358,438 | | 79,401,425 | | | | | | | |
| | | | | | | | | | | |
| Current portion | | 7,960,441 | | 73,304,654 | | | | | | | |
| Noncurrent portion, net of impairment loss | | 23,397,997 | | 6,096,771 | | | | | | | |
|
| The Company reviews project assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For project assets held for sale, the Company considers a project commercially viable if it is anticipated to be sold for a profit once it is either fully developed or fully constructed. The Company also considers a partially developed or partially constructed project commercially viable if the anticipated selling price is higher than the carrying value of the related project assets plus the estimated cost to completion. The Company considers a number of factors, including changes in environmental, ecological, permitting, market pricing or regulatory conditions that affect the project. Such changes may cause the cost of the project to increase or the selling price of the project to decrease. The Company records an impairment loss of the project asset to the extent the carrying value exceeds its estimated recoverable amount. The recoverable amount is estimated based on the anticipated sales proceeds plus any refundable project investment deposits reduced by estimated cost to complete such sales. For project assets held for use, the Company records impairment loss of the project assets following the accounting policy as disclosed in Note 2(m). In 2011 and 2012, no impairment loss for project assets have been provided. In 2013, the Company provided impairment loss of $10,660,148 for certain project assets held for sale. |
|
| Due to the development, construction, and sale timeframe of the Company’s solar projects, it classifies project assets held for sale which are not expected to be sold within the next 12 months as “Project assets, net of current portion” or noncurrent portion on the Consolidated Balance Sheets. Once specific milestones have been achieved, the Company determines if the sale of the project assets will occur within the next 12 months from a given balance sheet date and, if so, it then reclassifies the project assets as current. |
|
| As of December 31, 2012 and 2013, the company has pledged project assets with a total carrying amount of nil and $65,291,805, respectively, to secure bank borrowings (see Notes 10). |
| Property, plant and equipment, net | ' |
| (k) Property, plant and equipment, net |
|
| The Company reports its property, plant and equipment at cost, less accumulated depreciation. Cost includes the prices paid to acquire or construct the assets, interest capitalized during the construction period and any expenditure that substantially extends the useful life of an existing asset. The Company expenses repair and maintenance costs when they are incurred. A summary of interest costs incurred is as follows: |
|
| | Year ended December 31, | | | | | |
| | 2011 | | 2012 | | 2013 | | | | | |
| | $ | | $ | | $ | | | | | |
| Total interest incurred | | 37,459,515 | | 51,886,930 | | 48,444,855 | | | | | |
| Less: Interest capitalized | | 2,438,575 | | — | | — | | | | | |
| Interest expenses | | 35,020,940 | | 51,886,930 | | 48,444,855 | | | | | |
|
| The Company computes depreciation expense using the straight-line method over the estimated useful lives of the assets presented below. |
|
| | Years | | | | | | | | | |
| | | | | | | | | | | |
| Buildings | | 10–25 | | | | | | | | | |
| Plant and machinery | | 5–10 | | | | | | | | | |
| Motor vehicles | | 3–5 | | | | | | | | | |
| Electronic equipment, furniture and fixtures | | 3–5 | | | | | | | | | |
| Prepaid land use rights | ' |
| (l) Prepaid land use rights |
|
| The Company’s prepaid land use rights are reported at cost and are charged to expense on a straight-line basis over the 50-year period of the rights granted in the PRC. |
| Impairment of long-lived assets | ' |
| (m) Impairment of long-lived assets |
|
| The Company’s long-lived assets include property, plant and equipment, project assets held for use and other intangible assets with finite lives. The Company evaluates the long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. These events include but are not limited to significant current period operating or cash flow losses associated with the use of a long-lived asset or group of assets combined with a history of such losses, significant changes in the manner of use of assets and significant negative industry or economic trends. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. No impairments were recorded for long-lived assets during the years ended December 31, 2011, 2012, and 2013. |
| Contingencies | ' |
| (n) Contingencies |
|
| Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
| Income taxes | ' |
| (o) Income taxes |
|
| The Company accounts for income taxes using the asset and liability method whereby the Company calculates the deferred tax assets or liabilities at the balance sheet date using enacted tax laws and rates expected to apply in the periods in which the deferred tax assets or liabilities are expected to be realized or settled. The Company establishes valuation allowances to reduce deferred tax assets to the extent it is more likely than not that such deferred tax assets will not be realized. The Company does not provide deferred tax liabilities for investments in foreign subsidiaries to the extent such amounts relate to permanently reinvested earnings and profits of such foreign subsidiaries. |
|
| Income tax expense includes (i) deferred tax expense, which generally represents the net change in the deferred tax assets and liabilities during the year plus any change in valuation allowances and (ii) current tax expense, which represents the amounts of tax currently payable to or receivable from the taxing authorities. The Company only recognizes tax benefits related to uncertain tax positions when such positions are more likely than not of being sustained upon examination. For such positions, the amount of tax benefit that the Company recognizes is the largest amount of tax benefit that is more than fifty percent likely of being sustained upon the ultimate settlement of such uncertain tax position. The Company records interest and penalties related to an uncertain tax position, if and when required, as part of income tax expense in the consolidated statements of operations. |
| Revenue recognition | ' |
| (p) Revenue recognition |
|
| The Company recognizes revenue for product sales when persuasive evidence of an arrangement exists, delivery of the product has occurred and title and risk of loss has passed to the customer, the sales price is fixed or determinable and the collectability of the resulting receivable is reasonably assured. The Company’s sales agreements typically contain customary product warranties but normally do not contain post-shipment obligations nor return or credit provisions. |
|
| The Company recognizes sales of its solar modules based on the terms of the specific sales. Generally, it recognizes sales when the modules have been delivered to the customers’ designated point of shipment, which may include commercial docks or commercial shipping vessels. The Company normally provides credit terms to customers with good creditworthiness as determined by the Company’s credit assessment. For limited sales transactions with customers whose creditworthiness is doubtful, the Company requests cash payment before delivery and records such receipts as advances from customers. For customers to whom credit terms are extended, the Company only recognizes revenue when collectability is reasonably assured. The Company assesses collectability based on a number of factors, including past customer transaction history and customer credit analysis. |
|
| Revenue recognition for a given solar power project is dependent on the structure of the agreement and the Company’s intention on holding the project asset. For all the existing project assets the Company has gained control of land or land use rights. If the Company holds the project asset with the intention of developing it for sale, the Company recognizes revenue and the corresponding costs once the sale is consummated, the buyer’s initial and any continuing investments are adequate, the resulting receivables are not subject to subordination and the Company has transferred the customary risk and rewards of ownership to the buyer. In general, the sale is consummated upon the execution of an agreement documenting the terms of the sale and a minimum initial payment by the buyer to substantiate the transfer of risk to the buyer. As a result, depending on the value of the initial and continuing payment commitment by the buyer, the Company generally aligns the revenue recognition and release of project assets to cost of sale with the receipt of payment from the buyer. If the Company holds the project developed for use, the project asset is deemed as an operating asset, and the revenue from connection to the grid, as well as any other revenue generated by the solar power project prior to its sale, is classified as operating revenue for the Company. If the operating asset is eventually sold, the proceeds from the sale of the solar power project is classified as gain/loss on sale of asset. |
| Shipping and handling costs | ' |
| (q) Shipping and handling costs |
|
| Shipping and handling costs charged to customers are recorded in net sales. Shipping and handling costs relating to solar module sales of $45,498,328, $54,675,873 and $59,965,161 are included in selling expenses for the years ended December 31, 2011, 2012 and 2013, respectively. Shipping and handling costs relating to inventory purchases of $469,416, $869,814 and $1,353,600 are included as a component of cost of goods sold for the years ended December 31, 2011, 2012 and 2013, respectively. |
| Research and development | ' |
| (r) Research and development |
|
| Research and development costs are incurred during the period the Company is developing new products or significantly improving existing products or technologies. Research and development costs consist primarily of compensation and related costs for personnel, material, supplies, equipment depreciation and laboratory testing costs. These costs are expensed as incurred. |
| Government grants | ' |
| (s) Government grants |
|
| The Company qualifies for grants from the PRC government for achieving certain research and development milestones. It records these grants as an offset to its research and development expenses in the periods in which the Company earns them. Grants that it receives prior to when the Company achieves the specified milestone are reported as a liability. The Company recorded, $411,970, $342,974 and nil of earned grants as reductions of research and development expenses for the years ended December 31, 2011, 2012 and 2013, respectively. Government grants related to assets are recorded as deferred liabilities and are recognized as an offset to depreciation expense on a straight-line basis over the useful life of the associated asset. The Company received government grants for assets of $2,315,542, $4,837,756 and $2,817,719 during the years ended December 31, 2011, 2012 and 2013, respectively, and recognized $4,833,562, $2,460,843 and $320,682 as an offset to depreciation expense for the years ended December 31, 2011, 2012 and 2013, respectively. The Company records unrestricted cash government subsidies in other income in the consolidated statements of operations. Unrestricted cash government subsidies received were $8,045,834, $1,002,024 and $5,380,114 during the years ended December 31, 2011, 2012 and 2013, respectively. |
| Product warranties | ' |
| (t) Product warranties |
|
| Historically the Company provided a limited warranty to the original purchasers of its solar modules for two or five years, in relation to defects in materials and workmanship, and 25 years in relation to minimum power output. Since June 2011, the Company extended the warranty period in relation to defects in materials and workmanship from two or five years to ten years. Additionally, the Company has replaced its two-step performance warranty with a linear performance warranty that guarantees module power output will not decrease by more than approximately 0.7% per year after the initial year of service. The Company accrues warranty costs when recognizing revenue and recognizes such costs as a component of selling expense. Warranty costs primarily consist of replacement costs for parts and materials and labor costs for maintenance personnel. Due to its limited solar module manufacturing history, the Company does not have a significant history of warranty claims. Based on its best estimates of both future costs and the probability of incurring warranty claims, the Company accrues for product warranties at 1% of solar module sales. The Company derives its estimates from a number of factors, including (1) an analysis of actual historical costs incurred in connection with its warranty claims, (2) an assessment of competitors’ accrual and claim history and (3) results from academic research, including industry-standard accelerated testing, and other assumptions that the Company believes to be reasonable under the circumstances. The Company’s revision to its warranty policy in June 2011 did not have a material effect on its warranty accrual rate. The Company’s estimates of its warranty obligations are subjective. The Company regularly analyzes its claim history and the performance of its products compared to its competitors to determine whether the accrual is adequate. Should the Company begin to experience warranty claims different from its accrual rate, the Company will prospectively revise the warranty accrual rate. |
| Foreign currency translation and foreign currency risk | ' |
| (u) Foreign currency translation and foreign currency risk |
|
| The United States dollar (“US dollar”), the currency in which a substantial portion of the Company’s transactions are denominated, is used as the functional and reporting currency of the Company. Monetary assets and liabilities denominated in currencies other than the US dollar are translated into US dollar at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the US dollar during the year are converted into the US dollar at the applicable rates of exchange prevailing at the beginning of the month the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of operations. |
|
| The financial records of the Company’s subsidiaries outside of the US are maintained in local currencies other than US dollar, such as RMB and Euro, which are their functional currencies. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of accumulated other comprehensive income in the statement of comprehensive income. |
|
| The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the PRC government, controls the conversion of RMB to foreign currencies. The value of the RMB is subject to changes of central government policies and international economic and political developments affecting supply and demand in the China foreign exchange trading system market. The Company’s cash and cash equivalents and restricted cash denominated in RMB amounted to $145,036,568 and $154,134,399 as of December 31, 2012 and 2013, respectively. As of December 31, 2013, 97% of the Company’s cash and cash equivalents and restricted cash were held in major financial institutions located in PRC, European, USA and Asian Pacific financial institutions and amounted to $542,381,806 in total which were denominated in the following currencies: |
|
| | USD | | RMB | | EUR | | GBP | | AUD | |
| | (million) | | (million) | | (million) | | (million) | | (million) | |
| In PRC | | 216 | | 939 | | 33 | | — | | 1 | |
| In European Union | | 12 | | — | | 31 | | 10 | | 4 | |
| In USA | | 33 | | — | | — | | — | | — | |
| In Asian Pacific | | 16 | | 1 | | — | | — | | 1 | |
| Total in original currency | | 277 | | 940 | | 64 | | 10 | | 6 | |
| | | | | | | | | | | |
| US$ equivalent | | 277 | | 154 | | 89 | | 16 | | 6 | |
| Concentrations of credit risk | ' |
| (v) Concentrations of credit risk |
|
| Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash and cash equivalent, restricted cash, accounts receivable, advances to suppliers and foreign currency forward contracts. The Company’s investment policy requires cash and cash equivalents, restricted cash, and investments to be placed with high-quality financial institutions and to limit the amount of credit risk from any one issuer. Similarly, the Company enters into foreign currency derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any one counterparty. The foreign currency derivative contracts are limited to a time period of less than 6 months. The Company regularly evaluates the credit standing of its counterparty financial institutions. |
|
| Before conducting business with customers, the Company conducts credit evaluations of these customers and requires certain customers to post letters of credit to secure payment or to make significant down payments. The Company generally has not required collateral or other security interests from its suppliers but it performs ongoing credit evaluations and communication with these suppliers of their financial condition and capability for goods delivery. The Company records an allowance for doubtful accounts primarily based on the specific evaluation of individual account’s collectability and recoverability risk, previous loss history and the counterparties’ current ability to fulfill its obligation. |
|
| The assessment of customer creditworthiness is primarily based on historical collection records, validation of the project specifications with the customers and their financing banks, customer onsite visits by senior management and information provided by third party credit rating agency, such as Dun & Bradstreet, and the insurance company that ultimately insures the Company against customer credit default. Using this information, the Company further evaluates the potential effect of a delay in financing on the customers’ liquidity and financial position, their ability to draw down financing as well as their ability and intention to pay should it not obtain the related financing. Based on this analysis, the Company determines what credit terms, if any, to offer to each customer individually. If the assessment indicates a likelihood of collection risk, the Company will not sell the products or sell on a cash or prepayment basis. Therefore, based on the strict credit assessment, the Company conducts business with those customers having the ability and intent to pay. |
| Share-based compensation | ' |
| (w) Share-based compensation |
|
| The Company’s share-based payment transactions with employees, such as restricted shares and share options, are measured based on the grant-date fair value of the equity instrument issued. The fair value of the award is recognized as compensation expense, net of estimated forfeitures, over the period during which an employee is required to provide service in exchange for the award, which is generally the vesting period. |
| Derivative financial instruments | ' |
| (x) Derivative financial instruments |
|
| The Company’s primary objective for holding derivative financial instruments is to manage currency risk. The Company records derivative instruments as assets or liabilities, measured at fair value. The recognition of gains or losses resulting from changes in fair values of those derivative instruments is based on the use of each derivative instrument and whether it qualifies for hedge accounting. |
|
| The Company entered into certain forward foreign exchange contracts to protect against volatility of future cash flows caused by the changes in foreign exchange rates associated with outstanding accounts receivable. The foreign exchange hedge contracts do not qualify for hedge accounting and, as a result, the changes in fair value of the foreign currency hedge contracts are recognized in the consolidated statements of operations. During the years ended December 31, 2011, 2012 and 2013, the Company recorded change in fair value of forward foreign currency exchange contracts of $(11,393,346) , $8,541,721and $2,180,418, respectively, which has been recorded in “Derivative (loss) gain” in the consolidated statements of operations. |
| Loss per share | ' |
| (y) Loss per share |
|
| Basic loss per share is computed by dividing net loss by the weighted average number of ordinary shares outstanding during the period. Diluted loss per ordinary share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. Ordinary share equivalents are excluded from the computation in loss periods as their effects would be anti-dilutive. |
|
| The following table sets forth the computation of the basic and diluted loss from operations per share for the periods indicated: |
|
| | Year ended December 31, | | | | | |
| | 2011 | | 2012 | | 2013 | | | | | |
| | $ | | $ | | $ | | | | | |
| Net loss attributable to Trina Solar Limited shareholders — basic | | (37,820,093 | ) | (266,555,392 | ) | (72,025,935 | ) | | | | |
| | | | | | | | | | | |
| Net loss attributable to Trina Solar Limited shareholders — diluted | | (37,820,093 | ) | (266,555,392 | ) | (72,025,935 | ) | | | | |
| | | | | | | | | | | |
| Weighted average number of ordinary shares outstanding — basic | | 3,521,182,416 | | 3,534,829,694 | | 3,553,552,756 | | | | | |
| | | | | | | | | | | |
| Weighted average number of ordinary shares outstanding — diluted | | 3,521,182,416 | | 3,534,829,694 | | 3,553,552,756 | | | | | |
| | | | | | | | | | | |
| Loss per ordinary share from operations — basic | | (0.01 | ) | (0.08 | ) | (0.02 | ) | | | | |
| | | | | | | | | | | |
| Loss per ordinary share from operations — diluted | | (0.01 | ) | (0.08 | ) | (0.02 | ) | | | | |
|
| For the years ended December 31, 2011, 2012 and 2013, the following securities were excluded from the computation of diluted loss per share as inclusion would have been anti-dilutive. |
|
| | Year ended December 31, | | | | | |
| | 2011 | | 2012 | | 2013 | | | | | |
| | | | | | | | | | | |
| Non-vested restricted shares | | 47,183,592 | | 40,464,927 | | 38,183,882 | | | | | |
| Share options | | 57,839,459 | | 99,161,181 | | 129,085,735 | | | | | |
| Convertible senior notes | | 377,083,332 | | 246,700,118 | | — | | | | | |
| | | | | | | | | | | |
| Total | | 482,106,383 | | 386,326,226 | | 167,269,617 | | | | | |
| Recently issued accounting pronouncements | ' |
| (z) Recently issued accounting pronouncements |
|
| In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. ASU 2013-02 is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. The Company adopted the new guidance in the first quarter of 2013. The adoption did not have a material impact on the Company’s consolidated financial statements and related disclosure. |
|
| In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The new standard is to be applied prospectively but retrospective application is permitted. The Company will implement the provisions of ASU 2013-11 as of January 1, 2015. The implementation will not have a material impact on the Company’s consolidated financial statements or related disclosure. |
