NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES
Basis of Accounting
The financial statements present the balance sheet, statements of
operations, stockholders' equity (deficit) and cash flows of the Company. These financial statements are presented in United States
dollars and have been prepared in accordance with accounting principles generally accepted in the United States.
Revenue and Cost Recognition
The Company has no current source of revenue; therefore the Company
has not yet adopted any policy regarding the recognition of revenue or cost.
Costs incurred to acquire new businesses, new product lines or similar
assets are expensed when incurred.
As of August 31, 2012 and 2011, office space was provided by various
current and former stockholders of the Company and the Company did not own or rent any property during these years.
Earnings per Share
Historical net loss per common share is computed using the weighted
average number of common shares outstanding. Diluted earnings per share include additional dilution from common stock equivalents,
such as stock issuable pursuant to the exercise of securities or other contracts to issue common stock were exercised or converted
into common stock or resulted in the issuance of common stock that shared in the earnings of the entity, but these potential common
stock equivalents were determined to be antidilutive.
Calculation of net loss per share is as follows:
||Year ended August 31,|
|Weighted average common shares
|Basic loss per share
The Company has not yet adopted any policy regarding payment of
dividends. No dividends have been paid during the years ended August 31, 2012 and 2011.
The provision for income taxes is the total of the current taxes
payable and the net of the change in the deferred income taxes. Provision is made for the deferred income taxes where differences
exist between the period in which transactions affect current taxable income and the period in which they enter into the determination
of net income in the financial statements.
The Company has selected August 31 as its year-end.
Advertising is expensed when incurred. No advertising expenses were
incurred during the years ended August 31, 2012 and 2011.
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 disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those
Certain amounts included in the prior financial statements have
been reclassified to conform to the current presentation. The reclassifications have no effect on total assets, total liabilities,
stockholders equity (deficit), or net loss as previously reported.