Value of Financial Instruments
The Company adopted ASC No. 820-10 (ASC 820-10), Fair Value Measurements.
ASC 820-10 relates to financial assets and financial liabilities.
ASC 820-10 defines fair value, establishes a framework for measuring
fair value in accounting principles generally accepted in the United States of America (GAAP), and expands disclosures about fair
value measurements. The provisions of this standard apply to other accounting pronouncements that require or permit fair value
measurements and are to be applied prospectively with limited exceptions.
ASC 820-10 defines fair value as the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
This standard is now the single source in GAAP for the definition of fair value, except for the fair value of leased property.
ASC 820-10 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on
market data obtained from independent sources (observable inputs) and (2) an entitys own assumptions, about market participant
assumptions that are developed based on the best information available in the circumstances (unobservable inputs). The fair value
hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy
under ASC 820-10 are described below:
Level 1 applies to assets or liabilities for which there are quoted
prices in active markets for identical assets or liabilities.
Level 2 applies to assets or liabilities for which there are inputs
other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities
in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions
(less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from,
or corroborated by, observable market data.
Level 3 applies to assets or liabilities for which there are unobservable
inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.
The Companys financial instruments consist principally of
cash, accounts payable, accrued liabilities, and amounts due to related parties. Pursuant to ASC 820, the fair value of our cash
is determined based on Level 1 inputs, which consist of quoted prices in active markets for identical assets. We
believe that the recorded values of all of our other financial instruments approximate their current fair values because of their
nature and respective maturity dates or durations.
or Loss Per Share
The Company computes net loss per share in accordance with ASC 260,
Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the
face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted
average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common
shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method.
In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased
from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive.
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. Actual results could differ from those estimates.
and Cash Equivalents
For the purposes of the statement of cash flows, the Company considers
all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of October
31, 2011 and July 31, 2012, there were no cash equivalents.
The Company has implemented all new accounting pronouncements that
are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and
the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material
impact on its financial position or results of operation.
Transactions in foreign currencies are translated into the currency
of measurement at the exchange rates in effect on the transaction date. Monetary balance sheet items expressed in foreign currencies
are translated into United States dollars at the exchange rates in effect at the balance sheet date. The resulting exchange gains
and losses are recognized in income.
The Company records stock-based compensation in accordance with
ASC 718, Compensation Stock Compensation using the fair value method. All transactions in which goods or services are the
consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received
or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees
and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments
The Other Receivable represents Harmonized Sales Tax Receivable
for expenses incurred by the Company in Canada. Companies that generate revenue are subject to Harmonized Sales Tax,
and are collected up front when purchases are made. Since the Company has no operations, the Tax collected is refundable
as such the Company has recorded a receivable of $16,256 as a of July 31, 2012.
|| Property and Equipment|
Property and equipment are stated at cost and are amortized over
their estimated useful lives using straight line depreciation method. Upon retirement or disposition of equipment, the
cost and accumulated amortization are removed from the accounts and any resulting gain or loss is reflected in operations. Repairs
and maintenance are charged to expense as incurred and expenditures for additions and improvements are capitalized.
The Companys intangible assets consist primarily of trademarks,
patents, and software which are carried at amortized cost. All trademarks have legal lives of 10 years and are amortized
over their respective legal lives upon approval. The Company reviews its intangible assets for impairment whenever events or circumstances
indicate that the carrying amount of an asset may not be recoverable. The Company assesses recoverability by reference to future
cash flows from the products underlying these intangible assets. If these estimates change in the future, the Company may be required
to record impairment charges for these assets. As of July 31, 2012, no impairment was record and the Company recorded an amortization
expense of $16,562