Instead of your theory...The more logical is simply the following explanations to those reported $0 Revenues, equity accounting principals and actual earnings (as PR'd) and guidance as also provided herein below ;o}
1.) -Understand the following factors to better 'realize' the Revenues and accounting methods and options utilized for the period ending 2007 as clearly indicated and otherwise obviously elected (by clear relevant/only identical definition) as is the most prudent explanation of allowable 'options' chosen by NNRF Inc., in compliance with the US GAAP rules and reporting election methodologies as you will now also discover collectively below:
A.) Read the PR in Re: "NNRF, Inc. Announces 10K Filing for the Fiscal Year Ended December 31, 2007":
NNRF, Inc. Announces 10K Filing for the Fiscal Year Ended December 31, 2007 Income From ZAO ATOLL $5,662,717 MOSCOW, April 21, 2008 (PRIME NEWSWIRE) -- NNRF, Inc. (Pink Sheets:NNRI) filed its 10K annual report on April 15, 2008. The report includes the audited financial statements of NNRF Inc. and the management discussion and analysis covering corporate activities for the fiscal year ended December 31, 2007.
NNRF, Inc. previously reported that the company would begin equity accounting(*A) for its proportionate interest in ZAO ATOLL (ATOLL) as of December 31, 2007. Accordingly, in its consolidated income statement for the fiscal year ended December 31, 2007, NNRF recorded $5,662,717 as its proportionate share of ATOLL's net income for ATOLL's fiscal year ended December 31, 2007. NNRF, Inc. owned 13.75% of ATOLL during the first quarter ended March 31, 2007 and 50% of ATOLL thereafter. During the fiscal years ended December 31, 2007 and 2006, income recognized from the Company's investment in ATOLL was $5,662,717 and $39,780, respectively. The increase is related to the increased ownership in ATOLL and an increase in ATOLL's net income.
The 10K report includes a description of ATOLL's operations for 2007 including reference to ATOLL's gross revenue for 2007 of $43,123,001. This number is lower than amounts that were previously reported for Q1, Q2 and Q3 due to a change in accounting procedures related to long term contracts(*B)and an extension of a single significant contract from 24 months to 36 months. This difference came about as a result of our US auditors participation in the annual audit of ATOLL in Moscow, which resulted in a correction in the method of application of US GAAP accounting standards for long term contracts(*B). Additionally, this correction in method of application of US GAAP accounting standards resulted in higher than previously reported net income margins for ATOLL's fiscal year ended December 31 2007. A portion of the revenues previously reported in the quarterly reports related to this long term contract will now be recorded in 2008 and 2009. ATOLL's audited net income remained in line with previously reported quarterly amounts.
As of December 31, 2007, NNRF has been a public operating Company for approximately 18 months. The Company is pleased that its cash investment of approximately $2 million in ATOLL has generated income to the company of approximately $5.6 million in this period. Additionally, the Company expects to be reporting revenuerelated to its technologiesin the first half of 2008. NNRF believes that these positive results are an affirmation that the Company is successfully executing its business plan.
Accounting Principles Board (APB) Opinion No. 18 a. The Equity Method of Accounting for Investments in Common Stock b. Issued in March 1971
Investments in Equity Securities a. More than 50% ownership of another company --> Consolidated Financial Statements --> Accounting Research Bulletin (ARB) No. 51, August 1959
b. At least 20%, but no more than 50% ownership of another company --> Equity Method is used. --> Accounting Principles Board (APB) Opinion No. 18, March 1971
c. Less than 20% ownership of another company --> No significant influence --> Rules of SFAS No. 115 (May 1993) are applied.
Investments in Debt Securities a. Rules of SFAS No. 115 (May 1993) are applied.
Equity Method a. Initial investment in common stock --> recorded at cost
b. Investor's share of net income of investee (after the date of acquisition) --> increases the carrying amount of investment. --> in the period when net income is reported by investee
b. Investor's share of net loss of investee (after the date of acquisition) --> decreases the carrying amount of investment. --> in the period when net loss is reported by investee
c. Dividends received from investee (after the date of acquisition) --> decrease the carrying amount of investment. --> in the period when dividends are declared
C.) Definition/Explanation of the NNRF Inc. (as logically referred to in PR above) US GAAP Accounting 'Method' elected for period ending 2007 -- Known as the:
Source: Financial & Investment Dictionary: Completed Contract Method ..."Accounting method whereby revenues and expenses (and therefore taxes) on long-term contracts, such as government defense contracts, are recognized in the year the contract is concluded, except that losses are recognized in the year they are forecast. This method differs from the percentage-of-completion method, where sales and costs are recognized each year based on the value of the work performed. Under the Tax Reform Act of 1986, manufacturers with long-term contracts must elect either the latter method or the percentage-of-completion capitalized cost method, requiring that 40% of the contract be included under the percentage-of-completion method and 60% under the taxpayer's normal accounting method."... http://www.answers.com/topic/completed-contract-method?cat=biz-fin -or- http://cpaclass.com/gaap/arb/gaap-arb-45.htm
--- The Bottom Line: --- ..A PRUDENT choice (cost-effective/Tax savings) by NNRF Inc US auditors advice ;o} ...And Good 'Guidance' going into 2008 and 2009 as also PR'd with complimentary explanation! -- of which now, i'm sure you can better understand ;o]
BTW, thanks for thethe great link the other day....Showing the impressive GROWTH of those Russian securities once we list on the same RTS exchange in Moscow -- Strong local investor will certainly support a much higher justified Market Cap for this soon-to-be recignized enterprise ;o} -- Thanks again for that FINAM Brokerage link...showing PROOF of their strong local Market stock performance and trends -- with other like State affiliated enterprises. ;]
Market Data 
Markets 
AI
