Attached files

file filename
EXCEL - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.Financial_Report.xls
10-K - TEXAS RARE EARTH RESOURCES CORP. FORM 10-K FOR THE FISCAL YEAR ENDED AUGUST 31, 2012 - Texas Rare Earth Resources Corp.trer10k083112.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R9.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R1.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R5.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R2.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R7.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R8.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R6.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R3.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R4.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R28.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R20.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R32.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R18.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R11.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R21.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R14.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R29.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R26.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R17.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R31.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R23.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R24.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R25.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R13.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R30.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R10.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R33.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R22.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R16.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R27.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R19.htm
EX-31.2 - CERTIFICATION - Texas Rare Earth Resources Corp.ex31-2.htm
EX-32.2 - CERTIFICATION - Texas Rare Earth Resources Corp.ex32-2.htm
EX-32.1 - CERTIFICATION - Texas Rare Earth Resources Corp.ex32-1.htm
EX-10.29 - SUPPLEMENTAL AGREEMENT - Texas Rare Earth Resources Corp.ex10-29.htm
EX-10.25 - EMPLOYMENT AGREEMENT - Texas Rare Earth Resources Corp.ex10-25.htm
EX-10.28 - SEVERANCE, WAIVER AND RELEASE AGREEMENT - Texas Rare Earth Resources Corp.ex10-28.htm
XML - IDEA: XBRL DOCUMENT - Texas Rare Earth Resources Corp.R12.htm
EX-31.1 - CERTIFICATION - Texas Rare Earth Resources Corp.ex31-1.htm
v2.4.0.6
SUMMARY OF ACCOUNTING POLICIES (Policies)
12 Months Ended
Aug. 31, 2012
Notes to Financial Statements  
Basis of Presentation
Basis of Presentation

Our financial records are maintained on the accrual basis of accounting whereby revenues are recognized when earned and expenses are recorded when incurred, in accordance with generally accepted accounting principles (“GAAP”) – United States.
Cash and Cash Equivalents
Cash and Cash Equivalents

We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.  Cash and cash equivalents consist of demand deposits at commercial banks.  We currently have cash deposits at financial institutions in excess of federally insured limits.
Property and Equipment
Property and Equipment

Our property and equipment consists primarily of vehicles, furniture and equipment, and are recorded at cost. Expenditures related to acquiring or extending the useful life of our property and equipment are capitalized. Expenditures for repair and maintenance are charged to operations as incurred. Depreciation is computed using the straight-line method over an estimated useful life of 3-20 years.
Lease Deposits
Lease Deposits

From time to time, the Company makes deposits in anticipation of executing leases.  The deposits are capitalized upon execution of the applicable agreements.
Long-lived Assets
Long-lived Assets

The Company reviews the recoverability of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through operations.  To determine if these costs are in excess of their recoverable amount, periodic evaluation of carrying value of capitalized costs and any related property and equipment costs are based upon expected future cash flows and/or estimated salvage value in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC 360”),  Property, Plant and Equipment.   We have not incurred any impairment losses and, therefore, no impairment is reflected in these financial statements.
Revenue Recognition
Revenue Recognition

We recognize revenue when persuasive evidence of an arrangement exists, services have been performed, the sales price is fixed or determinable, and collectability is probable. We have yet to generate any revenue.  
Mineral Exploration and Development Costs
Mineral Exploration and Development Costs

All exploration expenditures are expensed as incurred. Costs of acquisition and option costs of mineral rights are capitalized upon acquisition. Mine development costs incurred to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven and probable reserves exist and the property is determined to be a commercially mineable property. Costs incurred to maintain current production or to maintain assets on a standby
Share-based Payments
Share-based Payments

The Company estimates the fair value of share-based compensation using the Black-Scholes valuation model, in accordance with the provisions of ASC 718,  Stock Compensation and ASC 505, Share-Based Payments .  Key inputs and assumptions used to estimate the fair value of stock options include the grant price of the award, the expected option term, volatility of our stock, the risk-free rate, and dividend yield.Estimates of fair value are not intended to predict actual future events or the value ultimately realized by the option holders, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company.
Stock Option Plan
Stock Option Plan

In September 2008, the Board adopted our 2008 Stock Option Plan (the “2008 Plan”), which was also approved by our shareholders in September 2008.  In May 2011, the Board adopted an amendment to our 2008 Plan (the “Amended 2008 Plan”), which was also approved by our shareholders in August 2011. The Amended 2008 Plan increased the number of shares available for grant from 2,000,000 to up to 5,000,000 shares of our common stock for awards to our officers, directors, employees and consultants.  On February 15, 2012, our stockholders approved an increase of 2,000,000 of shares of common stock available for issuance under the Amended 2008  Plan.  As amended, the Plan provides for 7,000,000 shares of common stock for all awards.  Other provisions of the Amended 2008 Plan remain the same as under our 2008 Plan.  As of August 31, 2012, a total of 3,125,000 shares of our common stock remained available for future grants under the Amended 2008 Plan.  
Income Taxes
Income Taxes

Income taxes are computed using the asset and liability method, in accordance with ASC 740, Income Taxes.  Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities, and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.
Basic and Diluted Loss Per Share
Basic and Diluted Loss Per Share

The Company computes loss per share in accordance with ASC 260, Earnings Per Share, which requires presentation of both basic and diluted earnings per share on the face of the Statements of Operations.  Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period.  Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period, including stock options and warrants using the treasury method.  Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.
Use of Estimates
Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of 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.  Management believes that these financial statements include all normal and recurring adjustments necessary for a fair presentation under Generally Accepted Accounting Principles.
Fair Value Measurements
Fair Value Measurements

We account for assets and liabilities measured at fair value in accordance with ASC 820, Fair Value Measurements and Disclosures .  ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement.  Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability.  As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified with Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).The three levels of inputs used to measure fair value are as follows:
Recent Accounting Pronouncements
Recent Accounting Pronouncements

Pronouncements between August 31, 2012 and the date of this filing are not expected to have a significant impact on our operations, financial position, or cash flow, nor does the Company expect the adoption of recently issued, but not yet effective, accounting pronouncements to have a significant impact on our results of operations, financial position or cash flows.