China MediaExpress Holdings, Inc. (fka CCME)

[norweger1979]

from the 10k regarding costs

CME pays concession fees to the bus operators participating in its network on a monthly basis. However, the total concession fees payable under each long-term contract are charged to the consolidated statements of operations as concession expenses on a straight-line basis over the course of the contract period, based on the assumption that the concession fees increase by 10% per year. The differences between concession fee payments and concession fee expenses charged to the consolidated statements of operations are accrued as liability or recorded as reversal to the corresponding previously accrued liability. Changes in the estimation of annual increase will affect the amount of concession expenses to be charged to the consolidated statements of operations.