XML 77 R13.htm IDEA: XBRL DOCUMENT

PROPERTY AND EQUIPMENT, NET

9 Months Ended

Jul. 31, 2012

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 8 - PROPERTY AND EQUIPMENT, NET

On April 10, 2010, CBP China entered into a Purchase Agreement with Hongxiangmingyuan of Heilongjiang Yongtai Company, to acquire two office floors for a total consideration of $6,064,878. Pursuant to the Purchase Agreement, a payment of $4,245,415 was made in April 2010 and recorded as deposits on the condensed consolidated balance sheet. Pursuant to the Purchase Agreement, final payment of $1,819,463was paid in May 2012. The title of one office floor was transferred in May 2012, the Company reclassified $2,829,699 from deposits to property and equipment and started depreciation over the estimated useful life of the asset. The other office floor is still in the process of title transfer.

Property and equipment and related accumulated depreciation as of July 31, 2012 and October 31, 2011 were as follows:

		July 31, 2012				October 31, 2011
		US$				US$

Machinery and equipment			3,739,492				3,710,282
Office Building			2,829,699				-
Office equipment and furnishings			66,874				66,352
Motor vehicles			57,206				56,759
Total:			6,693,271				3,833,393

Less: Accumulated depreciation			(2,438,296	)			(2,054,409	)
Net book value			4,254,975				1,778,984

The depreciation expense incurred and recognized on our condensed consolidated statements of income and comprehensive income during the three and nine months ended July 31, 2012 and 2011 were as follow:

		For the three months ended July 31,
		2012				2011
		US$				US$

Depreciation expenses in general and administrative			75,251				5,365
Depreciation expenses in cost of goods sold			94,418				92,283
Total depreciation expenses			169,669				97,648

		For the nine months ended July 31,
		2012				2011
		US$				US$

Depreciation expenses in general and administrative			84,185				12,899
Depreciation expenses in cost of goods sold			282,988				273,480
Total depreciation expenses			367,173				286,379

No assets were pledged for borrowings as of July 31, 2012 and October 31, 2011.

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details