Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Company have been
prepared in accordance with accounting principles generally accepted in the United States of America. Because a precise determination
of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily
involves the use of estimates, which have been made using careful judgment. Actual results may vary from these estimates.
The financial statements have, in management's opinion,
been properly prepared within the framework of the significant accounting policies summarized below:
Cash and Cash Equivalents
Cash equivalents comprise certain highly liquid instruments
with a maturity of three months or less when purchased. As at July 31, 2012, there were no cash equivalents.
Development Stage Company
The Company complies with the FASB Accounting Standards
Codification (ASC) Topic 915 Development Stage Entities and the Securities and Exchange Commission Exchange Act 7 for its characterization
of the Company as development stage.
Impairment of Long Lived Assets
Long-lived assets are reviewed for impairment in accordance
with ASC Topic 360, "Accounting for the Impairment or Disposal of Long- lived Assets". Under ASC Topic 360, long-lived
assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be
recoverable. An impairment charge is recognized or the amount, if any, which the carrying value of the asset exceeds the fair value.
Foreign Currency Translation
The Company is located and operating outside of the
United States of America. It maintains its accounting records in U.S. Dollars, as follows:
At the transaction date, each asset, liability, revenue,
and expense is translated into U.S. dollars by the use of exchange rates in effect at that date. At the period end, monetary assets
and liabilities are remeasured by using the exchange rate in effect at that date. The resulting foreign exchange gains and losses
are included in operations.
The Company's currency exposure is insignificant and
immaterial and we do not use derivative instruments to reduce its potential exposure to foreign currency risk.
The carrying value of the Company's financial instruments
consisting of cash equivalents and accounts payable and accrued liabilities approximates their fair value because of the short
maturity of these instruments. Unless otherwise noted, it is management's opinion that the Company is not exposed to significant
interest, currency or credit risks arising from these financial instruments.
The Company uses the assets and liability method of
accounting for income taxes in accordance with FASB Topic 740 Income Taxes". Under this method, deferred tax assts
and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements
carrying amounts of existing assets and liabilities and their respective tax bases. 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.
Basic and Diluted Net Loss Per Share
In accordance with FASB Topic 260 , "Earnings
Per Share', the basic net loss per common share is computed by dividing net loss available to common stockholders by the weighted
average number of common shares outstanding. Diluted net loss per common share is computed similar to basic net loss per common
share except that the denominator is increased to include the number of additional common shares that would have been outstanding
if the potential common shares had been issued and if the additional common shares were dilutive. As at July 31, 2011, diluted
net loss per share is equivalent to basic net loss per share.
Stock Based Compensation
The Company accounts for stock options and similar
equity instruments issued in accordance with ASC Topic 718 Compensation-Stock Compensation. Accordingly, compensation costs attributable
to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the
expected vesting period. Transactions in which goods or services are received in exchange 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 instruments issued, whichever
is more reliably measurable. ASC Topic 718- Compensation requires excess tax benefits be reported as a financing cash inflow rather
than as a reduction of taxes paid.
The Company did not grant any stock options during
the period ended July 31, 2011.
The Company adopted Statement of Financial Accounting
Standards No. 130 (SFAS 130), Reporting Comprehensive Income, which establishes standards for reporting and display of comprehensive
income, its components and accumulated balances. The Company is disclosing this information on its Statement of Stockholders' Equity.
Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners.
The Company has no elements of "other comprehensive
income" during the period ended July 31, 2012.
The company expenses advertising costs as incurred.
There was no advertising expense incurred by the company during the period ended July 31, 2012.
Recent Accounting Pronouncements
In September 2011, the Financial Accounting Standards
Board (FASB) issued Accounting Standards Update (ASU) No. 2011-08, Intangibles Goodwill and Other (Topic 350): Testing
Goodwill for Impairment. The guidance in ASU 2011-08 is intended to reduce complexity and costs by allowing an entity the option
to make a qualitative evaluation about the likelihood of goodwill impairment to determine whether it should calculate the fair
value of a reporting unit. The amendments also improve previous guidance by expanding upon the examples of events and circumstances
that an entity should consider between annual impairment tests in determining whether it is more likely than not that the fair
value of a reporting unit is less than its carrying amount. Also, the amendments improve the examples of events and circumstances
that an entity having a reporting unit with a zero or negative carrying amount should consider in determining whether to measure
an impairment loss, if any, under the second step of the goodwill impairment test. The amendments in this ASU are effective for
annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted,
including for annual and interim goodwill impairment tests performed as of a date before September 15, 2011, if an entitys
financial statements for the most recent annual or interim period have not yet been issued. The adoption of this guidance is not
expected to have a material impact on the Companys financial position or results of operations.
In June 2011, the FASB issued ASU 2011-05, Comprehensive
Income (Topic 220): Presentation of Comprehensive Income, which is effective for annual reporting periods beginning after
December 15, 2011. ASU 2011-05 will become effective for the Company on October 1, 2012. This guidance eliminates the option to
present the components of other comprehensive income as part of the statement of changes in stockholders equity. In addition,
items of other comprehensive income that are reclassified to profit or loss are required to be presented separately on the face
of the financial statements. This guidance is intended to increase the prominence of other comprehensive income in financial statements
by requiring that such amounts be presented either in a single continuous statement of income and comprehensive income or separately
in consecutive statements of income and comprehensive income. The adoption of ASU 2011-05 is not expected to have a material impact
on our financial position or results of operations.
In May 2011, the FASB issued ASU 2011-04, Fair
Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and
IFRSs, which is effective for annual reporting periods beginning after December 15, 2011. This guidance amends certain accounting
and disclosure requirements related to fair value measurements. Additional disclosure requirements in the update include: (1) for
Level 3 fair value measurements, quantitative information about unobservable inputs used, a description of the valuation processes
used by the entity, and a qualitative discussion about the sensitivity of the measurements to changes in the unobservable inputs;
(2) for an entitys use of a nonfinancial asset that is different from the assets highest and best use, the reason
for the difference; (3) for financial instruments not measured at fair value but for which disclosure of fair value is required,
the fair value hierarchy level in which the fair value measurements were determined; and (4) the disclosure of all transfers between
Level 1 and Level 2 of the fair value hierarchy. ASU 2011-04 will become effective for the Company on October 1, 2012. We are currently
evaluating ASU 2011-04 and have not yet determined the impact that adoption will have on our financial statements.
In April 2011, the FASB issued ASU 2011-02, Receivables
(Topic 310): A Creditors Determination of Whether a Restructuring is a Troubled Debt Restructuring. This amendment
explains which modifications constitute troubled debt restructurings (TDR). Under the new guidance, the definition
of a troubled debt restructuring remains essentially unchanged, and for a loan modification to be considered a TDR, certain basic
criteria must still be met. For public companies, the new guidance is effective for interim and annual periods beginning on or
after June 15, 2011, and applies retrospectively to restructuring occurring on or after the beginning of the fiscal year of adoption.
The adoption of this ASU did not have a material impact on our financial statements.
In December 2010, the FASB issued ASU 2010-29,
“Business Combinations (Topic 805): Disclosure of supplementary pro forma information for business combinations.” This
update changes the disclosure of pro forma information for business combinations. These changes clarify that if a public entity
presents comparative financial statements, the entity should disclose revenue and earnings of the combined entity as though the
business combination that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting
period only. Also, the existing supplemental pro forma disclosures were expanded to include a description of the nature and amount
of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro
forma revenue and earnings. These changes become effective for the Company beginning October 1, 2011. The adoption of this ASU
did not have a material impact on our financial statements.
In December 2010, the FASB issued ASU 2010-28, “Intangible
–Goodwill and Other (Topic 350): When to perform Step 2 of the goodwill impairment test for reporting units with zero or
negative carrying amounts.” This update requires an entity to perform all steps in the test for a reporting unit whose carrying
value is zero or negative if it is more likely than not (more than 50%) that a goodwill impairment exists based on qualitative
factors, resulting in the elimination of an entity’s ability to assert that such a reporting unit’s goodwill is not
impaired and additional testing is not necessary despite the existence of qualitative factors that indicate otherwise. These changes
become effective for the Company beginning October 1, 2011. The adoption of this ASU did not have a material impact on our financial