Attached files

file filename
10-K - FORM 10-K - Innovative Wireless Technologies, Inc.v309295_10k.htm
EXCEL - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.Financial_Report.xls
XML - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.R5.htm
XML - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.R4.htm
XML - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.R3.htm
XML - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.R8.htm
XML - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.R7.htm
XML - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.R6.htm
XML - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.R2.htm
XML - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.R1.htm
XML - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.R16.htm
XML - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.R13.htm
XML - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.R11.htm
XML - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.R12.htm
XML - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.R15.htm
XML - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.R10.htm
XML - IDEA: XBRL DOCUMENT - Innovative Wireless Technologies, Inc.R14.htm
EX-32.1 - EXHIBIT 32.1 - Innovative Wireless Technologies, Inc.v309295_ex32-1.htm
EX-31.1 - EXHIBIT 31.1 - Innovative Wireless Technologies, Inc.v309295_ex31-1.htm
EX-10.1 - EXHIBIT 10.1 - Innovative Wireless Technologies, Inc.v309295_ex10-1.htm
EX-32.2 - EXHIBIT 32.2 - Innovative Wireless Technologies, Inc.v309295_ex32-2.htm
EX-31.2 - EXHIBIT 31.2 - Innovative Wireless Technologies, Inc.v309295_ex31-2.htm
EX-23.1 - EXHIBIT 23.1 - Innovative Wireless Technologies, Inc.v309295_ex23-1.htm
v2.4.0.6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

BASIS OF PRESENTATION - DEVELOPMENT STAGE COMPANY

 

The Company is a development stage company as defined by ASC 915-10-05, “Development Stage Entity”.  The Company is still devoting substantially all of its efforts on establishing the business and its planned principal operations have not commenced.  All losses accumulated, since inception, have been considered as part of the Company’s development stage activities.

 

ACCOUNTING METHOD

 

The Company's financial statements are prepared using the accrual method of accounting. The Company has elected a fiscal year ending on December 31.

 

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. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates.

 

CASH EQUIVALENTS

 

The Company considers all highly liquid investments with maturity of three months or less when purchased to be cash equivalents.

 

INCOME TAXES

 

The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, “Accounting for Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year; and, (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the 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 results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if, based on the weight of available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

 

ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is “more likely than not” that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable.

 

BASIC EARNINGS (LOSS) PER SHARE

 

Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period.  Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period. 

 

STOCK-BASED COMPENSATION

 

The Company recognizes the services received or goods acquired in a share-based payment transaction as services are received or when it obtains the goods as an increase in equity or a liability, depending on whether the instruments granted satisfy the equity or liability classification criteria [FAS-123(R), par.5].

 

A share-based payment transaction with employees is measured base on the fair value (or, in some cases, a calculated or intrinsic value) of the equity instrument issued. If the fair value of goods or services received in a share- based payment with non-employees is more reliably measurable than the fair value of the equity instrument issued, the fair value of the goods or services received shall be used to measure the transaction. Conversely, if the fair value of the equity instruments issued in a share-based payment transaction with non-employees is more reliably measurable than the fair value of the consideration received, the transaction is measured at the fair value of the equity instruments issued [FAS-123(R), par.7].

 

The cost of services received from employees in exchange for awards of share- based compensation generally is measured at the fair value of the equity instruments issued or at the fair value of the liabilities incurred. The fair value of the liabilities incurred in share-based transactions with employees is remeasured at the end of each reporting period until settlement [FAS-123(R), par.10].

 

Share-based payments awarded to an employee of the reporting entity by a related party or other holder of an economic interest in the entity as compensation for services provided to the entity are share-based transactions to be accounted for under FAS-123(R) unless the transfer is clearly for a purpose other than compensation for services to the reporting entity. The substance of such a transaction is that the economic interest holder makes a capital contribution to the reporting entity and that entity makes a share- based payment to its employee in exchange for services rendered [FAS-123(R), par.11].

 

IMPACT OF NEW ACCOUNTING STANDARDS

 

Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material affect on the accompanying financial statements.