Nature of Business
Skookum Safety Solutions Corp. (Skookum
or the Company) was incorporated under the laws of the State of Nevada, U.S. on October 19, 2010. Skookum is developing
a line of baby products. Skookum is a development stage company and has not yet realized any revenues from its planned operations.
Development Stage Company
The accompanying financial statements have
been prepared in accordance with generally accepted accounting principles related to development-stage companies. A development-stage
company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no
significant revenues there from.
Basis of Presentation
The financial statements of the Company
have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented
in US dollars.
The Company uses the accrual basis of accounting
and accounting principles generally accepted in the United States of America (GAAP accounting). The Company has adopted
an August 31 fiscal year end.
Cash and Cash Equivalents
Skookum considers all highly liquid investments
with maturities of three months or less to be cash equivalents. At August 31, 2012 and 2011, respectively, the Company had $40,948
and $54,895 of cash.
Fair Value of Financial Instruments
The Companys financial instruments
consist of cash and cash equivalents, prepaid expenses, accrued expenses and an amount due to an officer. The carrying amount of
these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing
market rates unless otherwise disclosed in these financial statements.
Income taxes are computed using the asset
and liability method. 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.
Use of Estimates
The preparation of financial statements
in conformity with generally accepted accounting principles 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 the financial statements
and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
The Company recognizes revenue when products
are fully delivered or services have been provided and collection is reasonably assured.
The operations of the Company are located
in Canada. Skookum maintains both U.S. Dollar and Canadian Dollar bank accounts. The functional currency is the U.S. Dollar. Transactions
in foreign currencies other than the functional currency, if any, are re-measured into the functional currency at the rate in effect
at the time of the transaction. Re-measurement gains and losses that arise from exchange rate fluctuations are included in income
or loss from operations due to materiality. Monetary assets and liabilities denominated in Canadian Dollars are translated into
U.S. Dollars at the rate in effect at the balance sheet date. Revenue and expenses denominated in Canadian Dollars are translated
at the average exchange rate.
Basic Income (Loss) Per Share
Basic income (loss) per share is calculated
by dividing the Companys net loss applicable to common shareholders by the weighted average number of common shares during
the period. Diluted earnings per share is calculated by dividing the Companys net income available to common shareholders
by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding
is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents
outstanding as of August 31, 2012.
Stock-based compensation is accounted for
at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any
Recent Accounting Pronouncements
Skookum does not expect the adoption of
recently issued accounting pronouncements to have a significant impact on the Companys results of operations, financial
position or cash flow.