Where the Company enters into transactions which involve both the provision of air time bundled with  products such as 3G data card and handset, total consideration received from handsets in these arrangements  are allocated and measured using units of accounting within the arrangement based on relative fair values  limited to the amount that is not contingent upon the delivery of other items or services.  Where the Company sells products to third party cellular phone stores the Company records the direct  sale of the products, typically handsets, as gross revenue when the Company is the primary obligor in the  arrangement and when title is passed and the products are accepted by the stores.  An allowance for doubtful receivables is provided based on a review of the collectibility of accounts  receivable. The Company determines the amount of allowance for doubtful receivables by examining the  aging analysis of outstanding accounts receivable as well as historical collection experience.  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 the construction has  been classified as land held for development, and then reclassified as land held under development after LED  begins its construction project. Prepayment 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 of total contract revenue and  contract cost indicate a loss, a provision for the entire loss on the contract is recorded in the period in which it  becomes evident.  The percentage of completion is measured based on the completion of the contract milestones predetermined  by the architects and engineers. Construction in progress is stated at cost plus (less) amounts associated with  estimated profit (loss) recognized on the basis of the percentage-of-completion method.  Investments in companies in which the Company exercises significant influence over the operating and  financial policy decisions are accounted for by the equity method. Under the equity method, the investment  is initially stated at cost and subsequently adjusted for its proportionate share in the net earnings of the  investee companies. Any cash dividends received are recognized as a reduction in the carrying value of the  investments.  Investments Accounted for Using Equity Method Buildings and Lands Consigned to Constructing Firm Inventories F-22