Deferred Revenue and Other Long-term Payables

6 Months Ended

Mar. 31, 2013

Deferred Revenue and Other Long-term Payables [Text Block]

11. Deferred Revenue and Other Long-term Payables

(a) Deferred Revenue

Deferred revenue mainly represents a government grant subsidy for additional cost of land use rights relating to BAK Industrial Park, which is amortized on a straight-line basis over the estimated useful lives of the depreciable facilities constructed thereon of 35 years.

(b) Other Long-term Payables

Other long-term payables as of September 30, 2012 and March 31, 2013 consist of the following:

		September 30,		March 31,
		2012		2013
Government subsidies received for:-
- Automated high-power lithium battery project from the National Development and Reform Commission and Ministry of Industry and Information Technology	$	7,913,200	$	8,012,759
- New energy innovation project from the Ministry of Finance		-		9,665,571
- Various lithium battery related projects from various government authorities		2,384,126		4,197,426
Others		67,046		-
	$	10,364,372	$	21,875,756

The Company will recognize these grant as income or offset with related expenditure when there were no present and future obligation for the subsidized projects.