|SEVEN STARS CLOUD GROUP, INC. filed this Form 8-K/A on 08/14/2017|
Wecast Services Group Limited
December 31, 2015 and December 31, 2016
Presentation and principles of consolidation
The Company prepares and presents its consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company and its subsidiaries (the "Group"). All inter-company transactions and balances have been eliminated in consolidation.
Since the Company and the acquired subsidiaries, besides Shanghai Wecast and MYP, were commonly controlled by Mr. Wu before acquisition as of December 31, 2014, therefore, although the Company was incorporated on December 23, 2015, in accordance with ASC Subtopic 805-50, the consolidated financial statements of the Company have been prepared as if the acquired subsidiaries had been owned by the Company since inception of common control, which was earlier than December 31, 2014. Results of operations for 2015 thus comprise those of the previously separate subsidiaries combined from the beginning of 2015 to the date the acquisition was completed which was no later than July 31, 2016.
Shanghai Wecast and MYP were acquired from third party at August 1, 2016 with no consideration. The consolidated financial statements of the Company include the acquired assets and liabilities of Shanghai Wecast and MYP at their historical carrying amounts and results of operations from August 1 to December 31 of 2016.