Sino Agro Food Inc (fka SIAF)

[labroj]

The recognition of revenues has 2 major ways of handle the revenues!

1) Percentage of compleation

2) Completed contract method

When using 1) there are more risk due to the fact that we (people) neglect or reduce the future costs in a contract or a project. In this case the revenues are (often) recognised as a percentage of the cost incured in a project compared to the full estimated cost calculation.

When using 2) the revenues will not be recognised until the project have been finalized and the risk have been transfered to the other party! Meaning that method 2 are the "safest"!

I think SIAF only uses method 1!

In there Q reports they write that they are matching the cost incured to the estimated cost for the full project!