2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.
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. Actual
results could differ from those estimates.
Company records an account receivable for revenue earned but not yet collected. If the Company determines any account to
be uncollectible based on significant delinquency or other factors, it is immediately written off. The Company has not had to
incur any allowance for bad debt as transaction fees are preapproved prior to a transaction.
nature of the Companys equipment is ATMs. The ATMs are depreciated utilizing a straight line method. The useful
life of each machine is approximately twelve years. The Company has a policy to immediately expense equipment with a
cost of less than $400.
|Property plant & equipment net of accumulated depreciation
Company reviews its long-lived assets for impairment in accordance with the guidance of FASB ASC 360-10, Property, Plant, and
Equipment, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability
of assets to be held and used is measured by a comparison of the capitalized costs of the assets to the future undiscounted net
cash flows expected to be generated by the assets and the expected cash flows are based on recent historical cash flows. If the
Company decides to dispose of a property, it will be moved to property held for sale and actively marketed. Property held for
sale is recorded at amounts not in excess of what management currently expects to receive upon sale, less costs of disposal. The
Company analyzes market conditions each reporting period and records additional impairments due to declines in market values of
like assets. The fair value of the property is determined by observable inputs such as appraisals and prices of comparable properties
in active markets for assets like the Companys. Gains are not recognized until the properties are sold.
the Company is primarily focused on the placement and management of ATMs, the vehicle owned by the Company at the year
ended September 30, 2011, was donated to a non-profit organization during the year ended September 30, 2012. The vehicle
represented an insignificant portion of the property held for sale. During the year ended September 30, 2012, the Company
sold the pressure washer equipment for $3,000.
Company recognizes revenue on a completed transaction basis. The revenue earned is the net of ATM transaction fees consisting
of gross processing fees charged at the point of sale location less any portion of such fee payable to the location owner, as
negotiated on a per location basis. All transactions are preauthorized and no allowance for bad debt is required.
Basic and Diluted Loss Per Common Share
and diluted net loss per common share has been calculated by dividing the net loss for the year by the basic and diluted
weighted average number of shares outstanding. There were 360,000 common stock equivalents as of September 30, 2012 related
to the convertible promissory notes. See Note 5. Those potentially dilutive common stock equivalents were excluded
from the diluted loss per share calculation as they would be antidilutive due to the net loss.
Impact of New Accounting and Reporting Standards
Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects,
if any, on its results of operation, financial position or cash flows. Based on that review, the Company believes that none
of these pronouncements will have a significant effect on its consolidated financial statements
Companys intangible assets represent the allocated value of the purchase price paid for the ATMs when the ATMs were purchased
in operating locations with written or implied contracts to continue to house the ATMs for an indefinite period of time, thus
exposing the ATMs to the same customer base that existed prior to the purchase. The Company tests intangible
assets determined to have indefinite useful lives for impairment annually, or more frequently if events or circumstances indicate
that assets might be impaired. The Company uses a variety of methodologies in conducting impairment assessments of indefinite-lived
intangible assets, including, but not limited to, discounted cash flows. For indefinite-lived intangible assets, other than goodwill,
if the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess. There
were impairment charges of $9,808 during the year ended September 30, 2012.
Company applies the provisions of Financial Accounting Standards Board Accounting Standard Codification (ASC) 740
Income Taxes. The Standard requires an asset and liability approach for financial accounting and reporting for
income taxes, and the recognition of deferred tax assets and liabilities for the temporary differences between the financial reporting
basis and tax basis of the Companys assets and liabilities at enacted tax rates expected to be in effect when such amounts
are realized or settled. Due to a loss from inception, the Company has no tax liability.
classifies tax-related penalties and net interest on income taxes as income tax expense. As of September 30, 2012 and 2011, no income
tax expense had been incurred.
financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles. The consolidated
financial statements of the Company include the accounts of City Media, Inc. and its wholly-owned subsidiary, Charta Systems,
Inc. All significant intercompany transactions have been eliminated.