Investments |
12 Months Ended |
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Sep. 30, 2016 | |
| Equity Method Investments and Joint Ventures [Abstract] | |
| Investments |
Investments
As discussed in Note 14 "Deconsolidation", on September 16, 2015, the Company deconsolidated Kingstone, reducing its ownership to 15% of the Hong Kong holding company. The Company's investment in Kingstone is accounted for using the equity method for periods subsequent to the deconsolidation due to the Company's ability to exert significant influence over the financial and operating policies of Kingstone, primarily through our representation on the board of directors. The Company recognizes its portion of net income or losses on a one-quarter lag. The resulting equity method investment was initially recorded at fair value at $2.7 million using the value the third party purchaser placed on their investment in Kingstone Shanghai, a Level 2 input in the fair value hierarchy. The carrying value of the equity method investment in Kingstone was $3.0 million and $2.7 million as of September 30, 2016 and 2015, respectively.
As of September 30, 2016, the Company's carrying value of Kingstone exceeded its share of the underlying equity in the net assets by approximately $2.7 million. In accordance with ASC Topic 323, Investments - Equity Method, the difference (the “ basis difference”) between the initial fair value of the Company’s investment and the proportional interest in the underlying net assets of Kingstone was accounted for using the acquisition method of accounting, which requires that the basis difference be allocated to the identifiable assets and liabilities of Kingstone at fair value and based upon the Company’s proportionate ownership. Determining the fair value of assets and liabilities is judgmental in nature and involves the use of significant estimates and assumptions. During the fourth quarter of 2016, the Company completed its valuation of the identifiable assets to which the basis is attributable and recorded amortization based on this valuation for the year ended September 30, 2016.
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