EFTA Document EFTA01367010

Amendment #4 Page 581 of 868 Ilebtr.0.9mIreh A Property, plant end equipment. net Propeny part and equipment are recorded at cost Deprecation is tabulated on the straight.sne memo l over the foto...erg estimated useful Ives of the assets Buildings 20 years Machinery and equipment 10-20 years Equipment and furniture 3-5 years Vehicles 5 years Cats miffed in the oonstrucoon of property. plart arid equipment, rcluding an allocation of interest expense treurred, are capeatzed and transferred irto their reepectrve asset category when the assets are ready fa thew Mended use at which erne depreciation commences. Ordinary rroontenance and repass are charged to expenses as incorrect and replacements and betterments we capitalized When items are retired or otherwise disposed of. income is charged a created for the difference behkeen the net book value or the Iles disposed and proceeds realized thereon L Land use rights Land use rights represent the cost of rights to use lard in the FRC Land use rights are carried at cost and charged to codeine on a straight-line basis over Ire respective periods of the rips o150 years. As of December 31, 2013 and 2014 the carrying antt4 of land use rgrts was 1158808 and USST85, reSpeetwely, which is induded in other nonCurrent assets in the combined balance sheets Amodeabon expense Of land use rights fa the years ended December 31.2013 and 2014 were USS17 and USS17, respecWehi, which is included in cost of revenues in the combined statements of compehenswe loss. The annual amortization expense of lard use rights is estimated to be USS17 (or each of the blowing 5 years. As of December 31,2013 and 2014. the Combned Erety lies pledged its land use rips with a total carrying amount of USSI306 arc USS788, respectwery, to secure bank borrowings (note 5) t Impairtnent of long-lived swats Long-lived assets, such as property, pant and equpment and land use rights are renewed for impairrrent wherever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable If croarstances requre a long-hat asset or asset group be tested for amble impairment the Combined Entity list compares indsoothted cashflows expected to be generated by that asset or asset group tons carrying value II the carrying value of the long-Ise.] asset or asset group a rot recoverable on an undiscounted cash flow basis. an impairment is recognized ba the extent that the carrying value exceeds is fair value. Fair value is determined through discounted cash Sow =deb, quoted market values or third-party mdeperdent appraisals. as considered necessary. Assets to be deposed are reported at the bower of carrying amount or fair value less costs to sell, and are roi longer deprecated t*3 impairment of long-lived assets was recognized for the years ended December 31,2013 and 2014 A. Rayne nwegnttion Ire Combined Enhtya revenues are generated trough the sales cf wind power pursuant to terms of power purchase agreements ('PPAs') or otter contractual arrangements The Combned Entity is required to sell all wind power generated by the facilities at specific rates as determined by the PPAs The Combined Entity recogces revenue from the sale of wind power when the electricity is generated and delivered F.261 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058538 CONFIDENTIAL SDNY GM_00204722 EFTA01367010