Financial Assets Carried at Cost Impairment of Accounts Receivable Inventories Investments in equity instruments with no quoted prices in an active market and with fair values that cannot be reliably  measured, such as non-publicly traded stocks and stocks traded in the Emerging Stock Market, are measured at their original  cost. The accounting treatment for dividends on financial assets carried at cost is the same with that for dividends on available- for-sale financial assets. An impairment loss is recognized when there is objective evidence that the asset is impaired. A  reversal of this impairment loss is disallowed. An allowance for doubtful accounts is provided on the basis of a review of the collectibility of accounts receivable before  January 1, 2011. The Company assesses the probability of collections of accounts receivable by examining the aging analysis  of the outstanding receivables and assessing the value of the collateral provided by customers. On January 1, 2011, the Company adopted the third-time revised Statement of Financial Accounting Standards (SFAS) No.  34, “Financial Instruments: Recognition and Measurement.” One of the main revisions is that the impairment of receivables  originated by the Company should be covered by SFAS No. 34. Accounts receivable are assessed for impairment at the end  of each reporting period and considered to be impaired when there is objective evidence that, as a result of one or more events  that occurred after the initial recognition of the accounts receivable, the estimated future cash flows of the asset have been  affected. The carrying amount of the accounts receivable is reduced through the use of an allowance account. The amount of the impairment loss recognized is the difference between the asset carrying amount and the present value  of estimated future cash flows, after taking into account the related collateral and guarantees, discounted at the receivable’s  original effective interest rate. Inventories including merchandise and work-in-process are stated at the lower of cost (weighted-average cost) or net realizable  value item by item, except for those that may be appropriate to group items of similar or related inventories. Net realizable  value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. The calculation of the cost of inventory is derived using the weighted-average method.  Inventories of LED are stated at the lower of cost or net realizable value item by item, except for those that may be appropriate  to group as similar items or related inventories. Land acquired before construction is classified as land held for development,  and then reclassified as land held under development after LED begins its construction project. Prepayments for licensing and  other miscellaneous costs have been capitalized as part of inventory. When using the completed-contract method for its construction projects, LED recognizes the proceeds from customers  as advances from customers for land and building before the construction project is completed. After completion of the  construction project and ownership is transferred to the customers, LED recognizes the relevant revenues. When using percentage-of-completion method, profits are recorded based on LED’s estimates of the percentage of completion  of individual contracts, commencing when the work performed under the contracts reaches a point where the final costs can  be estimated with reasonable accuracy. Changes in job performance, job conditions and estimated profitability may result in  revisions to costs and income and are recognized in the period in which the revisions are determined. If the current estimates  PART III Buildings and Lands Consigned to Constructing Firm F-18