Nature of Business
Queensridge Mining Resources, Inc. (Queensridge
or the Company) was incorporated in Nevada on January 29, 2010. Queensridge is an exploration stage company and has
not yet realized any revenues from its planned operations. Queensridge is currently in the process of acquiring certain mining
Exploration Stage Company
The accompanying financial statements have
been prepared in accordance with generally accepted accounting principles related to exploration stage companies. An exploration
stage company is one in which planned principal operations have not commenced, or, if its operations have commenced, there have
been no significant revenues there from.
Basis of Presentation
The financial statements of the Company have
been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in
The Company uses the accrual basis of accounting
and accounting principles generally accepted in the United States of America (GAAP accounting). The Company has adopted
a June 30 fiscal year end.
Cash and Cash Equivalents
The Company considers all highly liquid investments
with maturities of three months or less to be cash equivalents. At June 30, 2012 and 2011 the Company had cash balances totaling
$1,774 and $6,133, respectively.
Fair Value of Financial Instruments
The Companys financial instruments consist
of cash and cash equivalents, accrued expenses, accrued interest related party, shareholder loans and notes payable to
a related party. The carrying amount of these financial instruments approximates fair value due either to length of maturity or
interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.
Income taxes are computed using the asset and
liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the
differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted
tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence,
are not expected to be realized. It is the Companys policy to classify interest and penalties on income taxes as interest
expense or penalties expense. As of June 30, 2012, there have been no interest or penalties incurred on income taxes.
Use of Estimates
The preparation of financial statements in
conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements
and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
The Company has not adopted any policy regarding
payment of dividends. No dividends have been paid during the periods shown.
Basic Income (Loss) Per Share
Basic income (loss) per share is calculated
by dividing the Companys net loss applicable to common shareholders by the weighted average number of common shares during
the period. Diluted earnings per share is calculated by dividing the Companys net income available to common shareholders
by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding
is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents
outstanding as of June 30, 2012 or 2011.
The Company is in the development stage and
has yet to realize revenues from operations. Once the Company has commenced operations, it will recognize revenues when delivery
of goods or completion of services has occurred provided there is persuasive evidence of an agreement, acceptance has been approved
by its customers, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any
related receivable is probable.
The Company accounts for employee stock-based
compensation in accordance with the guidance of FASB ASC Topic 718, Compensation Stock Compensation which requires
all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements
based on their fair values. The fair value of the equity instrument is charged directly to compensation expense and additional
paid-in capital over the period during which services are rendered. There has been no stock-based compensation issued to employees.
The Company follows ASC Topic 505-50, formerly
EITF 96-18, Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction
with Selling Goods and Services, for stock options and warrants issued to consultants and other non-employees. In accordance
with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted
for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can
be more clearly determined. There has been no stock-based compensation issued to non-employees.
Costs of exploration and the costs of carrying
and retaining unproven mineral lease properties are expensed as incurred. Mineral property acquisition costs are capitalized including
licenses and lease payments. Although the Company has taken steps to verify title to mineral properties in which it has an interest,
these procedures do not guarantee the Company's title. Such properties may be subject to prior agreements or transfers and title
may be affected by undetected defects.
Impairment losses are recorded on mineral
properties used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated
by those assets are less than the assets carrying amount.
Recent Accounting Pronouncements
The Company does not expect the adoption of
recently issued accounting pronouncements to have a significant impact on the Companys results of operations, financial
position or cash flows.