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DISCONTINUED OPERATIONS
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9 Months Ended | ||
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Jun. 30, 2011
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| Discontinued Operations [Abstract] | |||
| Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] |
As previously disclosed in the Company’s Current Report on Form 10-Q filed on August 16, 2010, due to a contractual dispute with its one significant customer and the inability to reach a settlement, Datacenter Contractors AG’s (“DC”, formerly known as “Beacon Solutions AG”) Board has elected to discontinue DC’s operations. As a result, the net sales and expenses associated with DC have been reclassified as discontinued operations for the three months and nine months ended June 30, 2011 and 2010, respectively in the condensed consolidated financial statements.
On December 14, 2010, Beacon announced that, as a result of DC’s inability to reach a settlement of unpaid invoices by its largest debtor, the DC Board has filed the relevant statutory notices with the local judge in Switzerland in accordance with its fiduciary obligations under Swiss law. As a result of this action, Beacon ceases to have a controlling financial interest in DC and therefore, in accordance with ASC 810-10-65, must deconsolidate the subsidiary from the condensed consolidated financial statements for the three and nine months ended June 30, 2011. The resultant deconsolidation generated a net income of $0 and $7,892, respectively for the three and nine months ended June 30, 2011 which is mainly composed of the elimination of the net liabilities of the discontinued DC operations from Beacon’s operations.
We accounted for the filing under the guidance of ASU No. 2010-02, “Accounting and Reporting for Decreases in Ownership of a Subsidiary - a Scope Clarification”
which requires an entity to deconsolidate a subsidiary when the entity ceases to have a controlling financial interest in the subsidiary.
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