2 - Significant Accounting Policies
The accompanying unaudited financial statements have been prepared in accordance with accounting principles
generally accepted in the United States of America ("U.S. GAAP") for interim financial information, and with the rules and regulations
of the United States Securities and Exchange Commission ("SEC") to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they
do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim
financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of
management, necessary to a fair statement of the results for the interim periods presented. Interim results are not necessarily
indicative of the results for the full fiscal year. These financial statements should be read in conjunction with the financial
statements of the Company for the period from August 17, 2010 (Inception) through the end of its fiscal year August 31, 2011 and
notes thereto contained in the Company's interim period report ending February 28, 2012.
The Company is a development stage company as defined by section 810-10-20 of the FASB Accounting Standards
Codification. 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 exploration
The preparation of 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 assets and liabilities at the date of the financial statements as well as the reported amount of
revenues and expenses during the reporting period. Actual results could differ from these estimates. Due to the limited level
of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is
a going concern.
The Company elected August 31 as its fiscal year ending date.
The Company considers all highly liquid investments with maturities of three months or less at the time of
purchase to be cash equivalents.
value of financial instruments.
The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification
for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification
("Paragraph 820-10-35-37") to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework
for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands
disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures,
Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure
fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active
markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value
hierarchy defined by Paragraph 820-10-35-37 are described below:
Level 1. Quoted market prices available in active markets for
identical assets or liabilities as of the reporting date.
Level 2. Pricing inputs other than quoted prices in active markets included
in Level 1, which are either directly or indirectly observable as of the reporting date.
Level 3. Pricing inputs that are
generally observable inputs and not corroborated by market data. The carrying amounts of the Company's financial assets and
liabilities, such as accrued expenses approximate its fair values because of the short maturity of this instrument. The
Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently,
the Company did not have any fair value adjustments for assets and liabilities measured at fair value at February 28, 2012, nor
gains or losses are reported in the statement of operations that are attributable to the change in unrealized gains or losses
relating to those assets and liabilities still held at the reporting date for the period from August 17, 2010 (inception)
through end of fiscal year August 31, 2011 and interim period from November 30,2011 through February 28, 2012. Revenue
recognition The Company applies paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition.
The Company will recognize revenue when it is realized or realizable and earned. The Company considers revenue realized or
realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the
product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable,
and (iv) collectability is reasonably assured.
The Company follows Section 740-10-30 of the FASB Accounting Standards Codification, which requires 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 based on the differences between the financial
statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are
expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely
than not that the assets will not be realized. 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 Statements of Operations in the period that
includes the enactment date. The Company adopted section 740-10-25 of the FASB Accounting Standards Codification ("Section 740-10-25").
Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should
be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain
tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities,
based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should
be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate
settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes,
accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its liabilities for
unrecognized income tax benefits according to the provisions of Section 740-10-25.
loss per common share.
Net loss per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards
Codification. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock
outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares
of common stock and potentially outstanding shares of common stock during each period. There were no potentially dilutive shares
outstanding as of February 28, 2012.