Note 3 - Principles of Consolidation

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Consolidation [Text Block]

3. Principles of Consolidation .

From

January 1, 2018

through

June 30, 2018,

ACTS Global Healthcare, Inc. (ACTS) was consolidated under the variable interest entities (“VIE”) provisions of ASC

810,

“Consolidation” (“ASC

810”

). Inter-company balances and transactions have been eliminated upon consolidation.  Effective

July 1, 2018,

the Company acquired the assets and certain liabilities of ACTS and those accounts are included in the accounts of the Company from

July 1, 2018.

The Company applies the provisions of ASC

810

which provides a framework for identifying VIEs and determining when a company should include the assets, liabilities, non-controlling interests and results of activities of a VIE in its consolidated financial statements.

In general, a VIE is a corporation, partnership, limited-liability corporation, trust, or any other legal structure used to conduct activities or hold assets that either (

1

) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (

2

) has a group of equity owners that is unable to make significant decisions about its activities, (

3

) has a group of equity owners that does

not

have the obligation to absorb losses or the right to receive returns generated by its operations or (

4

) the voting rights of some investors are

not

proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity’s activities) either involve or are conducted on behalf of an investor that has disproportionately fewer voting rights.

ASC

810

requires a VIE to be consolidated by the party with an ownership, contractual or other financial interest in the VIE (a variable interest holder) that has both of the following characteristics: a) the power to direct the activities of a 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.