Deferred Revenue

12 Months Ended

Sep. 30, 2014

Deferred Revenue [Text Block]

13. Deferred Revenue

As of September 30, 2013, deferred revenue mainly represents a government grant subsidy of $9.2 million (RMB56 million) for costs 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. As of September 30, 2013, non-current deferred revenue was $7,560,386 and current portion of deferred revenue of $346,509 was included in accrued expenses and other payable (Note 12 (ii)).

On October 17, 2014, the Company received a subsidy of $7.52 million (RMB46,150,000) from the agreement with the Management Committee dated July 2, 2014 for costs of land use rights relating to the new manufacturing site in in Dalian. The subsidy will be amortized on a straight-line basis over the estimated useful lives of the depreciable facilities constructed thereon.