a. Basis of Accounting
The Companys financial
statements are prepared using the accrual method of accounting. The Company has elected a June 30, year-end.
b. Cash Equivalents
For purposes of the balance
sheet and statement of cash flows, the Company considers all highly liquid instruments with maturity of three months or less at
the time of issuance to be cash equivalents.
The Company follows ASC
718-10, Stock Compensation, which addresses the accounting for transactions in which an entity exchanges its equity instruments
for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment
transactions. ASC 718-10 requires measurement of the cost of employee services received in exchange for an award of equity instruments
based on the grant-date fair value of the award (with limited exceptions). Incremental compensation costs arising from subsequent
modifications of awards after the grant date must be recognized. The Company has not adopted a stock option plan and has not granted
any stock options.
d. Use of Estimates and
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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
The Company has adopted the provisions of ASC 260.
e. Earnings (Loss) per
The basic earnings (loss)
per share is calculated by dividing the Companys net income available to common shareholders by the weighted average number
of common shares during the period. The diluted earnings (loss) per share is calculated by dividing the Companys net income
(loss) available to common shareholders by the diluted weighted average number of shares outstanding during the period. The diluted
weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt
or equity. Diluted earnings (loss) per share are the same as basic earnings (loss) per share due to the lack of dilutive items
in the Company.
f. Income Taxes
Income taxes are provided
in accordance with ASC 740, Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between
financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during
the year of deferred tax assets and liabilities.
Deferred tax assets are
reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the
deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws
and rates on the date of enactment.
No provision was made for
Federal income tax.
Advertising will be expensed
in the period in which it is incurred. There has been no advertising expense in the reporting period presented.
h. Related Software Costs
Certain direct purchase
and related development costs associated with software are capitalized and include external direct costs for services and payroll
costs. These costs include employees devoting time to the software projects principally related to software coding, designing system
interfaces and installation and testing of the software. These costs are recorded as property and equipment and will be amortized
over a period of three to five years beginning when the asset is substantially ready for use. Costs incurred during the project
stage, as well as maintenance and training costs are expensed as incurred.
i. Intangible Assets
Intangible assets with
finite lives are amortized over their estimated useful life. The Company monitors conditions related to these assets to determine
whether events and circumstances warrant a revision to the remaining amortization period. The Company tests its intangible assets
with finite lives for potential impairment whenever management concludes events or changes in circumstances indicate that the carrying
amount may not be recoverable. The original estimate of an asset's useful life and the impact of an event or circumstance on either
an asset's useful life or carrying value involve significant judgment.
For the year ended June
30, 2012 we recognized $1,000 in amortization expense. Our customer list and business plan was placed in service on July 1st,
2011. We amortized these costs over twelve (12) months.
j. Recently Issued Accounting
The Company has implemented
all new accounting pronouncements that are in effect and that may impact its financial statements and 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 operations.
On April 5, 2012, President
Obama signed into law the Jumpstart Our Business Startups Act (JOBS Act), which establishes a new category of issuer called an
emerging growth company (EGC). Under the JOBS Act, an EGC is defined as an issuer with total annual gross revenues less than $1
billion during its most recently completed fiscal year. An issuer continues to be eligible for EGC status until the earliest of
(1) the last day of the fiscal year during which it had total annual gross revenues of $1 billion or more (as indexed for inflation
in the manner set forth in the JOBS Act), (2) the last day of the fiscal year of the issuer following the fifth anniversary of
the date of its initial public offering (IPO), (3) the date on which it issued more than $1 billion in non-convertible debt in
the previous three-year period, or (4) the date on which it became a large accelerated filer as defined in Rule 12b-2 of the Securities
Exchange Act of 1934.
Among other requirements,
the JOBS Act exempts an EGC from the requirements to adopt new or revised accounting standards that are effective for public companies.
Instead, the effective dates for private companies for such standards will apply to an EGC. Section 107(b) of the JOBS Act permits
an EGC to opt out of the accounting standard exemption and apply new or revised accounting standards on the same
basis as a public company.
Under the JOBS Act, the
Company meets the definition of an EGC. During the period it continues to be eligible for EGC status, the Company will apply new
or revised accounting standards following the effective dates for private companies.
In July 2012, the Financial
Accounting Standards Board (FASB) issued the Accounting Standards Update or ASU, 2012-02, Intangibles-Goodwill
and Other: Testing Indefinite-Lived Intangible Assets for Impairment, that allows entities to have the option first to assess
qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that
the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes
that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to
take further action to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment
test by comparing the fair value with the carrying amount in accordance with ASC 350-30. An entity also has the option to bypass
the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative
impairment test. An entity will be able to resume performing the qualitative assessment in any subsequent period. The guidance
is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, with early
adoption permitted. The Company does not expect the adoption of these provisions to have a significant effect on its financial
In December 2011, the FASB
issued the ASU 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out
of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05, that deferred the effective date for
amendments to the presentation of reclassifications of items out of other comprehensive income. ASU 2011-12 was issued to allow
the FASB time to re-deliberate the presentation requirements for reclassifications out of accumulated other comprehensive income
for annual and interim financial statements for public, private, and non-profit entities. During the re-deliberation period, entities
will continue to report reclassifications out of accumulated other comprehensive income using guidance in effect before ASU 2011-05
was issued. ASU 2011-05 is to be applied retrospectively and is effective for fiscal years, and interim periods within those fiscal
years, beginning after December 15, 2011. The Company does not expect the adoption of these provisions to have a material effect
on its financial statements.
In September 2011, the
FASB issued the ASU 2011-08, IntangiblesGoodwill and Other: Testing Goodwill For Impairment, that allows entities
to first assess qualitatively whether it is necessary to perform the two-step goodwill impairment test. If any entity believes,
as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than
its carrying amount, the quantitative two-step goodwill impairment test is required. An entity has the unconditional option to
bypass the qualitative assessment and proceed directly to performing the first step of the goodwill impairment test. The guidance
is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with
early adoption permitted. The Company does not expect the adoption of these provisions to have a significant effect on its financial
In June 2011, the FASB
issued the ASU 2011-05, Comprehensive Income: Presentation of Comprehensive Income. The new guidance requires the presentation
of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous
statement of comprehensive income or in two separate but consecutive statements. The new guidance also requires presentation of
adjustments for items that are reclassified from other comprehensive income to net income in the statement where the components
of net income and the components of other comprehensive income are presented. The guidance is effective for fiscal years and interim
periods within those fiscal years, beginning after December 15, 2011. The Company does not expect the adoption of these provisions
to have a significant effect on its financial statements.
In May 2011, FASB issued ASU 2011-04, which generally
represents clarifications of Topic 820, Fair Value Measurement , but also include some instances where a particular principle
or requirement for measuring fair value or disclosing information about fair value measurements has changed. This ASU 2011-04
results in common principles and requirements for measuring fair value and for disclosing information about fair value measurements
in accordance with U.S. GAAP and International Financial Reporting Standards, or IFRSs. ASU 2011-04 should be applied prospectively
and is effective for annual periods beginning after December 15, 2011. Early adoption is not permitted. The Company does not expect
the adoption of this ASU 2011-04 to have an impact on its financial statements.