NOTE 2 - SUMMARY OF SIGNIFICANT
Basis of Presentation
The accompanying financial
statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) as promulgated in
the United States of America.
Cash and Cash Equivalents
Cash include cash on hand
and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days
or less. The Company did not have cash equivalents as of September 30, 2012 and 2011, respectively.
Use of Estimates
The preparation of the financial
statements in conformity with accounting principles generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date
of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ
from those estimates.
Loss per Common Share
Basic loss per common share
excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period.
Diluted loss per common share reflects the potential dilution that could occur if securities or other contracts to issue common
stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the loss of
the entity. As of December 31, 2011, there were no outstanding dilutive securities.
Fair Value of Financial
The Company adopted ASC 820,
Fair Value Measurements and Disclosures (ASC 820). ASC 820 defines fair value, establishes a three-level valuation hierarchy for
disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined
Level 1: observable inputs
that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2: include other inputs
that are directly or indirectly observable in the marketplace.
Level 3: unobservable inputs
which are supported by little or no market activity.
The Company had no such assets
or liabilities recorded to be valued on the basis above at September 30, 2012 and 2011.
The Company utilizes FASB
ACS 740, “Income Taxes,” which requires the 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 determined based on the difference between the tax basis of assets and liabilities and their financial
reporting amounts based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected
to affect taxable income. A valuation allowance is recorded when it is “more likely-than-not” that a deferred
tax asset will not be realized.
The Company generated a deferred
tax credit through net operating loss carry-forward. However, a valuation allowance of 100% has been established.
Interest and penalties on
tax deficiencies recognized in accordance with ACS accounting standards are classified as income taxes in accordance with ASC Topic
Recent Accounting Pronouncements
The FASB issued Accounting
Standards Update (ASU) No.2012-02 Intangibles Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment,
on July 27, 2012, to simplify the testing for a drop in value of intangible assets such as trademarks, patents, and distribution
rights. The amended standard reduces the cost of accounting for indefinite-lived intangible assets, especially in cases where the
likelihood of impairment is low. The changes permit businesses and other organizations to first use subjective criteria to determine
if an intangible asset has lost value. The amendments to U.S. GAAP will be effective for fiscal years starting after September
15, 2012. Early adoption is permitted. The adoption of this ASU will not have a material impact on our financial statements.