Astd Certification Institute

“Astd ci is recognized as exempt from federal income taxes under section 501(c)(6) of the internal revenue code and applicable state laws. Tbi is exempt from federal income taxes under section 501(c)(3) of the internal revenue code and applicable state laws. The irs has also determined that tbi is not a private foundation. It is the opinion of management that astd ci and tbi earned no net taxable unrelated business income for the years ended december 31, 2013 and 2012. The accounting standard on accounting for uncertainty in income taxes addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this guidance, astd may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses de-recognition, classification, interest and penalties on income taxes, and accounting in interim periods. Management evaluated astd's tax positions and concluded that astd had taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. Generally, astd is no longer subject to income tax examinations by the u.s. Federal, state or local tax authorities for years before 2010.”

“Affiliate income included in consolidated financial statement 31,193,895.”

“Affiliate expense included in consolidated financial statement 29,920,348.”