NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
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 of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
Management further acknowledges that it is solely responsible for adopting
sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud.
The Company's system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are
valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce
financial statements which present fairly the financial condition, results of
operations and cash flows of the Company for the respective periods being presented
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 of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Significant estimates include the estimated useful lives of property
and equipment. Actual results could differ from those estimates.
The Company considers all highly liquid investments with a maturity
of three months or less when purchased to be cash equivalents.
Fair value of financial instruments
The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards
Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards
Codification (Paragraph 820-10-35-37)
to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value
in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value
measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37
establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3)
broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical
assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph
820-10-35-37 are described below:
||Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.|
||Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.|
||Pricing inputs that are generally observable inputs and not corroborated by market data.|
The carrying amount of the Companys
financial assets and liabilities, such as cash, prepaid expenses and accrued expenses approximate their fair value because of the
short maturity of those instruments. The Companys
notes payable approximate the fair value of such instruments based upon managements
best estimate of interest rates that would be available to the Company for similar financial arrangements at August 31, 2012.
The Company does not have any assets or liabilities measured at fair
value on a recurring or a non-recurring basis.
Equipment is recorded at cost. Expenditures for major additions and
betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation of equipment is
computed by the straight-line method (after taking into account their respective estimated residual values) over the assets estimated
useful life of three (3) or seven (7) years. Upon sale or retirement of equipment, the related cost and accumulated depreciation
are removed from the accounts and any gain or loss is reflected in statements of operations.
Impairment of long-lived assets
The Company follows paragraph 360-10-05-4 of the FASB Accounting Standards
Codification for its long-lived assets. The Companys long-lived
assets, which includes computer equipment is reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount of the asset may not be recoverable.
The Company assesses the recoverability of its long-lived assets by
comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets
over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess
of the carrying amount over the fair value of those assets. Fair value is generally determined using the assets
expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be
recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values
of the long-lived assets are depreciated over the newly determined remaining estimated useful lives.
The Company determined that there were no impairments of long-lived
assets as of August 31, 2012.
Commitments and contingencies
The Company follows subtopic 450-20 of the FASB Accounting Standards
Codification to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments,
litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount
of the assessment can be reasonably estimated.
The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards
Codification for revenue recognition. The Company will recognize revenue when it is realized or realizable and earned. The
Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence
of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales
price is fixed or determinable, and (iv) collectability is reasonably assured.
The Company follows Section 740-10-30 of the FASB Accounting Standards
Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events
that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities
are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in
effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation
allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax
assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those
temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change
in tax rates is recognized in the Statements of Income and Comprehensive Income in the period that includes the enactment date.
The Company adopted section 740-10-25 of the FASB Accounting Standards
Codification (Section 740-10-25)
with regards to uncertainty income taxes. Section 740-10-25 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 Section 740-10-25, the Company
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 the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the
financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent
(50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification,
interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had
no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of Section 740-10-25.
Net income (loss) per common share
Net income (loss) per common share is computed pursuant to section 260-10-45
of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income
(loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss)
per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially
outstanding shares of common stock during the period. The weighted average number of common shares outstanding and potentially
outstanding common shares assumes that the Company incorporated as of the beginning of the first period presented.
There were no potentially dilutive shares outstanding as of August 31,
Cash flows reporting
The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards
Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing,
or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (Indirect
method) as defined by paragraph 230-10-45-25 of the FASB
Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to
net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments
and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that
do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign
currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash
held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash
equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments
in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification.
The Company expenses the cost of advertising and promotional materials
when incurred. Total Advertising costs were $0 for 2012 and 2011.
The Company follows the guidance in Section 855-10-50 of the FASB Accounting
Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when
the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the
Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing
them on EDGAR.
Recently issued accounting pronouncements
The following accounting standards were issued as of December 26,
ASU 2010-06, Fair Value Measurements and Disclosures (Topic
820) Improving Disclosures about Fair Value Measurements.
This ASU affects all entities that are required
to make disclosures about recurring and nonrecurring fair value measurements under FASB ASC Topic 820, originally issued as FASB
Statement No. 157, Fair Value Measurements. The ASU requires certain new disclosures and clarifies two existing disclosure
requirements. The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods
beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward
of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010,
and for interim periods within those fiscal years.
ASU 2011-04, Fair Value Measurement (Topic 820) Amendments
to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs
This ASU supersedes most of the guidance in
Topic 820, although many of the changes are clarifications of existing guidance or wording changes to align with IFRS 13. In addition,
certain amendments in ASU 2011-04 change a particular principle or requirement for measuring fair value or disclosing information
about fair value measurements. The amendments in ASU 2011-04 are effective for public entities for interim and annual periods beginning
after December 15, 2011.