CSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
of Presentation- The financial statements included herein were prepared under the accrual basis of accounting.
and Cash Equivalents- For purposes of the Statement of Cash Flows, the Company considers liquid investments with an original
maturity of three months or less to be cash equivalents.
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 and disclosures of contingent assets and liabilities at the date of financial statements and the reported amounts
of revenue and expenses during the reporting period. Actual results could differ from those estimates. The financial statements
above reflect all of the costs of doing business.
Recognition- The Company applies paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition.
The Company recognizes revenue when it is realized or realizable and earned less estimated future doubtful accounts. The Company
considers revenue realized or realizable and earned when all of the following criteria are met:
services have been rendered
and all required milestones
is reasonably assured.|
Income (Loss) - The Company reports Comprehensive income and its components following guidance set forth by section 220-10
of the FASB Accounting Standards Codification which establishes standards for the reporting and display of comprehensive income
and its components in the financial statements. There were no items of comprehensive income (loss) applicable to the Company during
the years covered in the financial statements.
Income 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 September 30, 2012.
Taxes- The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred
income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets
and liabilities and are measured using the enacted tax rates and laws that will be in effect when 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.
Value of Financial Instruments- The carrying amounts reported in the balance sheet for cash, accounts receivable and payable
approximate fair value based on the short-term maturity of these instruments.
Receivable- Accounts deemed uncollectible are written off in the year they become uncollectible. As of September 30th, 2012
and 2011, the balance in Accounts Receivable was $0 and $0, respectively.
of Long-Lived Assets- The Company evaluates the recoverability of its fixed assets and other assets in accordance with section
360-10-15 of the FASB Accounting Standards Codification for disclosures about Impairment or Disposal of Long-Lived Assets. Disclosure
requires recognition of impairment of long-lived assets in the event the net book value of such assets exceeds its expected cash
flows. If so, it is considered to be impaired and is written down to fair value, which is determined based on either discounted
future cash flows or appraised values. The Company adopted the statement on inception. No impairments of these types of assets
were recognized during the two years ended September 30, 2012.
Compensation- The Company accounts for stock-based compensation using the fair value method following the guidance set forth
in section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires
a public entity to measure 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). That cost will be recognized over the period during which an employee
is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation
cost is recognized for equity instruments for which employees do not render the requisite service.
Value for Financial Assets and Financial Liabilities- 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 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 levels of fair
value hierarchy defined by Paragraph 820-10-35-37 are described below:
market prices available in active markets for identical assets or liabilities as of the reporting date.|
inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable
as of the reporting date.|
inputs that are generally observable inputs and not corroborated by market data.|
carrying amounts of the Companys financial assets and liabilities, such as cash and accrued expenses, approximate their
fair values because of the short maturity of these instruments. The Companys note payable approximates the fair value of
such instrument based upon managements best estimate of interest rates that would be available to the Company for similar
financial arrangement at September 30, 2012.
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 September 30, 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 six months ended September 30, 2012.
Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption
of any such pronouncements may be expected to cause a material impact on its consolidated financial condition or the consolidated
results of its operations.
May 2011, FASB issued Accounting Standards Update No. 2011-04, Fair Value Measurements (Topic 820): Amendments
to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (ASU 2011-04). ASU
2011-04 changes the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing
information about fair value measurements to ensure consistency between U.S. GAAP and IFRS. ASU 2011-04 also expands the
disclosures for fair value measurements that are estimated using significant unobservable (Level 3) inputs. This new
guidance is to be applied prospectively. The Company anticipates that the adoption of this standard will not materially
expand its financial statement note disclosures.
June 2011, FASB issued ASU No. 2011-05, Comprehensive Income (ASC Topic 220): Presentation of
Comprehensive Income (ASU 2011-05), which amends current comprehensive income guidance. This accounting
update eliminates the option to present the components of other comprehensive income as part of the statement of shareholders
equity. Instead, the Company must report comprehensive income in either a single continuous statement of comprehensive income
which contains two sections, net income and other comprehensive income, or in two separate but consecutive statements. ASU
2011-05 will be effective for public companies during the interim and annual periods beginning after December 15, 2011, with
early adoption permitted. The Company is reviewing ASU 2011-05 to ascertain its impact on the Companys financial
position, results of operations or cash flows as it only requires a change in the format of the current presentation.
September 2011, the FASB issued ASU 2011-08 which provides an entity the option to first assess qualitative factors to determine
whether it is necessary to perform the current two-step test for goodwill impairment. If an 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 impairment test is required. Otherwise, no further testing is required. The revised standard
is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011.
We do not expect that the adoption of this standard will have a material impact on our results of operations, cash flows or financial
December 2011, FASB issued Accounting Standards Update 2011-11, Balance Sheet - Disclosures about Offsetting Assets and
Liabilities to enhance disclosure requirements relating to the offsetting of assets and liabilities on an entity's balance
sheet. The update requires enhanced disclosures regarding assets and liabilities that are presented net or gross in the statement
of financial position when the right of offset exists, or that are subject to an enforceable master netting arrangement. The new
disclosure requirements relating to this update are retrospective and effective for annual and interim periods beginning on or
after January 1, 2013. The update only requires additional disclosures, as such, we do not expect that the adoption of this standard
will have a material impact on our results of operations, cash flows or financial condition.
2012-02 allows companies the option to first assess qualitatively whether it is more likely than not that an indefinite-lived
intangible asset is impaired, before determining whether it is necessary to perform the quantitative impairment test. An entity
is not required to calculate the fair value of an indefinite-lived intangible asset and perform the quantitative impairment test
unless the entity determines that it is more likely than not that the asset is impaired. Companies can choose to perform the qualitative
assessment on none, some, or all of its indefinite-lived intangible assets or choose to only perform the quantitative impairment
test for any indefinite-lived intangible in any period.
2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012,
with early adoption permitted. The Company is in the process of evaluating the guidance and the impact ASU 2012-02 will have on
its consolidated financial statements.