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EXCEL - IDEA: XBRL DOCUMENT - CHINA MEDIA INC.Financial_Report.xls
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v2.4.0.6
Note 2. Summary of Significant Accounting Policies: Revenue Recognition (Policies)
12 Months Ended
Jun. 30, 2012
Revenue Recognition:  
Revenue Recognition

Revenue Recognition

 

The Company’s revenue primarily comes from the distribution of film and TV series’ broadcasting rights and investment return from the collectively produced film and TV series.

 

In accordance with ASC 926, Entertainment - Films, revenue from sale or licensing arrangements of a film shall be recognized when the following five revenue criteria are met: persuasive evidence of an arrangement exists, the film is completed and delivery has occurred, the license period of the arrangement has begun, the selling price is fixed or determinable, and collectability is reasonably assured.

 

The Company also generates advertising revenues from the sale of advertising services. In the majority of advertising arrangements, the Company acts as an agent in the transaction and records advertising revenues on a net basis. Customer payments received in advance of the performance of services are recorded as deferred revenue in the consolidated balance sheet, and are recognized as revenue when the advertising services are rendered.