text: **( 3 ) S u m m a ry of Significant Accounting Policies and Practices**
  
  (a) Basis of presentation 
  
  The accompanying consolidated financial statements have been pre p a red in accordance with generally accepted accounting principles in 
  the United States of America. 
  
  All significant intercompany balances and transactions have been eliminated. 
  
  (b) Foreign currencies 
  
  F o reign currency transactions are re c o rded at the exchange rate prevailing on the date of the transactions. Assets and 
  liabilitiesdenominated in foreign currencies are re m e a s u red at rates of exchange on the balance sheet date. Resulting gains and losses on 
  f o reign currency transactions are included in the consolidated statement of operations and comprehensive loss. 
  
  The financial statements of foreign subsidiaries where the local currency is the functional currency are translated to U.S. dollars using 
  (i) exchange rates in effect at period end for assets and liabilities, and (ii) average exchange rates during the period for results of 
  operations. Adjustments resulting from translation of such financial statements are reflected in accumulated other comprehensive income 
  as aseparate component of consolidated stockholders’ equity. 
  
  The financial statements of foreign subsidiaries where the functional currency is the U.S. dollar are re m e a s u red using historical 
  exchangerates for nonmonetary items while current exchange rates are used for monetary items. Foreign exchange gains and losses 
  arising from the re m e a s u rement are re p o rted in the consolidated statement of operations and comprehensive loss. 