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Investments in Available-For-Sale and Trading Securities
9 Months Ended
May 31, 2012
Investments in Available-For-Sale and Trading Securities [Abstract]  
Investments in Available-For-Sale and Trading Securities

Investments in Available-for-Sale and Trading Securities

The Company has invested in various bonds. These investments are classified as available-for-sale securities, and are carried at fair value as of May 31, 2012, based on the quoted market prices as of that date. These investments are subject to default risk. The Company intends to hold these for a minimum period of an additional 12 months. Unrealized gains in the fair value are reported in accumulated other comprehensive income, net of related income tax effect. The Company monitors its investment portfolio for any decline in fair value that is other than temporary and records any such impairment as an impairment loss.

 

The Company also invests in initial public offerings of equity securities on the Hong Kong Stock Exchange. These investments are classified as trading securities, and are carried at fair value as of May 31, 2012. These investments are subject to fluctuations in the market price. During the nine months ended May 31, 2012 and 2011, the Company had a net gain (loss) of $(206,726) and $33,504 in trading of these securities, respectively.