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SEVEN STARS CLOUD GROUP, INC. filed this Form 8-K/A on 08/14/2017
Entire Document

Wide Angle Group Limited


December 31, 2015 and December 31, 2016


Note 1 - Operations and significant accounting policies (continued)



Impairment of long-lived assets

Long-lived assets such as property and equipment are reviewed for impairment whenever events or changes in the circumstances indicate that the carrying value of an asset may not be recoverable. When these events occur, the Group assesses the recoverability of the long-lived assets by comparing the carrying amount to the estimated future undiscounted cash flows associated from the use of the asset and its eventual disposition, and recognize an impairment of long-lived assets when the carrying value of such assets exceeds the estimated future undiscounted cash flows such assets is expected to generate. If the Group recognizes an impairment, the Group reduces the carrying amount of the assets group to its estimated fair value based on an undiscounted cash flow approach or, when available and appropriate, to comparable market values.


There was no impairment charge for long-lived assets recognized as of December 31, 2015 and 2016.


Revenue recognition

Revenue is recognized when the following criteria under FASB ASC 605 “Revenue Recognition” are met:


1)Persuasive evidence of an arrangement exists;


2)Delivery has occurred or services have been rendered (the risks, rewards and ownership of the products are transferred to customers); and


3)The seller’s price to the buyer is fixed or determinable; and


4)Collectability is reasonably assured.


Revenue is measured at the fair value of the consideration received or receivable and is shown net of discounts, rebates, returns and sales-related taxes. Revenue is recognized in profit or loss provided it is probable that the economic benefits will flow to the Group and the revenue and costs, if applicable, can be measured reliably, as follows:


Sales of goods are recognized when goods are delivered and the risks and rewards of ownership have transferred to the customer.


Advertising income is recognized on relevant publication date.


Consultancy fee income is recognized when the services have been rendered. 


The accompanying notes are an integral part of these consolidated financial statements. 10