Principles of Consolidation
The consolidated financial statements include
the accounts of the Company and its wholly owned subsidiary. All significant inter-company transactions and balances have been
Cash and Cash Equivalents
Cash and cash equivalents are defined as cash
on hand, demand deposits and short-term, highly liquid investments with an original maturity of ninety days or less.
Development Stage Company
The Company complies with Accounting Standards
Board Codification 915 and Securities and Exchange Commission Act Guide 7 for its characterization of the Company as development
Use of Estimates
The preparation of financial statements in
conformity generally accepted accounting principles in the United States requires management to make estimates and assumptions
that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amount of revenue and expenses during the period. Actual results may differ from those estimates.
Basic Loss per Share
Basic loss per share has been calculated based
on the weighted average number of shares of common stock outstanding during the period.
The asset and liability approach is used to
account for income taxes by recognizing deferred tax assets and liabilities for the expected future tax consequences of temporary
differences between the carrying amounts and the tax basis of assets and liabilities. The Company records a valuation allowance
to reduce the deferred tax assets to the amount that is more likely than not to be realized.
The Company's financial instruments consist
of cash, accounts payable and advances from shareholders. 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. Because of the short maturity
of such assets and liabilities the fair value of these financial instruments approximate their carrying values, unless otherwise
Inventories are valued at the lower of cost
or market. Cost is determined by using the average cost method. Inventories consist primarily of Mexican jewelry and silverware.
Tortuga determines its provision for obsolete and slow-moving inventory based on management's analysis of inventory levels and
future sales forecasts.
Impairment of Inventory
The Company reviews inventory for indicators
of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the review
indicates that the carrying amount of the asset may not be recoverable, the potential impairment is measured based on a projected
discounted cash flow method using a discount rate that is considered to be commensurate with the risk inherent in the company's
current business model. During the years ended August 31, 2012 and 2011, the Company recorded no impairment loss.
The Company recognizes revenue when persuasive
evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectibility is probable.
These criteria are generally met at the time product is shipped or services are performed.
All sales are final and returns are not accepted.
All sales are paid in cash at the time the products are delivered.
Newly Adopted Accounting Pronouncements
We do not expect the adoption of recently issued
accounting pronouncements to have a significant impact on our results of operation, financial position or cash flow.