Nature of Business and Summary of Significant Accounting Policies (Policies)
|12 Months Ended
Sep. 30, 2012
|Accounting Policies [Abstract]
|Nature of business and organization
Nature of business and organization
Tuffnell LTD. (the Company),
was incorporated in the State of Nevada on July 26, 2007. The Company is an Exploration Stage Company as defined by Guide 7 of
the Securities Exchange Commissions Industry Guide and Accounting Standards Codification "ASC"
Topic 915-10 Development Stage Entities., and is in the process of exploring and evaluating its mineral
properties and determining whether they contain ore reserves that are economically recoverable. The recoverability of amounts shown
for mineral properties is dependent upon the discovery of economically recoverable ore reserves, the ability of the Company to
obtain the necessary financing to complete development, confirmation of the Companys interest in the underlying mineral
claims and upon future profitable production or proceeds from the disposition of all or part of its mineral properties.
|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 and disclosure of contingent 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 these estimates.
|Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents include interest
bearing and non-interest bearing bank deposits, money market accounts, and short-term instruments with a liquidation provision
of three month or less.
Advertising costs are generally expensed
as incurred and are included in selling and marketing expenses in the accompanying statement of operations. As of September 30,
2012 and 2011, there were $8,111 and $72,910, respectively, advertising costs incurred.
The operations of the Company have been,
and may in the future, be affected from time to time, in varying degrees, by changes in environmental regulations, including those
for future reclamation and site restoration costs. Both the likelihood of new regulations and their overall effect upon the Company
vary greatly and are not predictable. The Companys policy is to meet or, if possible, surpass standards set by relevant
legislation, by application of technically proven and economically feasible measures.
|Concentrations of credit risk
Concentrations of credit risk
The Companys financial instruments that
are exposed to concentrations of credit risk primarily consist of its cash, accounts payable and notes payable. The Company places
its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with
a particular financial institution may exceed any applicable government insurance limits.
|Risks and uncertainties
Risks and uncertainties
The Company operates in the resource exploration
industry that is subject to significant risks and uncertainties, including financial, operational, technological, and other risks
associated with operating a resource exploration business, including the potential risk of business failure.
The Company has no revenues to date
from its operations. Once revenues are generated, management will establish a revenue recognition policy.
|Mineral property Acquisition Costs
Mineral property Acquisition Costs
The cost of acquiring mineral properties are
capitalized and will be amortized over their estimated useful lives following the commencement of production or expensed if it
is determined that the mineral property has no future economic value or the properties are sold or abandoned. Cost includes cash
consideration and the fair market value of shares issued on the acquisition of mineral properties. Properties acquired under option
agreements, whereby payments are made at the sole discretion of the Company, are recorded in the accounts at such time as the payments
are made. The recoverable amounts for mineral properties is dependent upon the existence of economically recoverable reserves;
the acquisition and maintenance of appropriate permits, licenses and rights; the ability of the Company to obtain financing to
complete the exploration and development of the properties; and upon future profitable production or alternatively upon the Companys
ability to recover its spent costs from the sale of its interests.
The amounts recorded as mineral properties
reflect actual costs incurred and are not intended to express present or future values. The capitalized amounts may be written
down if potential future cash flows, including potential sales proceeds, related to the property are estimated to be less than
the carrying value of the property. Management of the Company reviews the carrying value of each mineral property interest quarterly,
and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Reductions in the carrying
value of each property would be recorded to the extent the carrying value of the investment exceeds the estimated future net cash
|Exploration and Development Costs
Exploration and Development Costs
Exploration costs are expensed as incurred.
When it is determined that a mining deposit can be economically and legally extracted or produced based on established proven and
probable reserves, further exploration and development costs related to such reserves incurred after such determination will be
capitalized. The establishment of proven and probable reserves is based on results of final feasibility studies which indicate
whether a property is economically feasible. Upon commencement of commercial production, capitalized costs will be transferred
to the appropriate asset category and amortized over their estimated useful lives. Capitalized costs, net of salvage values, relating
to a deposit which is abandoned or considered uneconomic for the foreseeable future, will be written off.
|Fair Value of Financial Instruments
Fair Value of Financial Instruments
Fair value accounting establishes a fair value
hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority
to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority
to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
Level 1 Unadjusted
quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 Quoted
prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full
term of the asset or liability; and
Level 3 Prices
or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported
by little or no market activity).
The Companys financial instruments consist
of mineral property purchase obligations. These obligations are classified within Level 2 of the fair value hierarchy as their
fair value is determined using interest rates which approximate market rates. The Company is not exposed to significant interest
or credit risk arising from these financial instruments.
|Impairment of Long-Lived Assets
Impairment of Long-Lived Assets
The Company reviews and evaluates long-lived
assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable.
The assets are subject to impairment consideration under ASC 360-10-35-17, if events or circumstances indicate that their carrying
amount might not be recoverable. When the Company determines that an impairment analysis should be done, the analysis will be performed
using the rules of ASC 930-360-35, Asset Impairment, and 360-10 through 15-5, Impairment or Disposal of Long-Lived Assets.
|Basic and diluted net loss per share
Basic and diluted net loss per share
The Company computes net loss per share in
accordance with ASC 260, Earnings per Share, which requires presentation of both basic and diluted earnings per share
(EPS) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders
(numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all
potentially dilutive common shares outstanding during the period.
In computing Diluted EPS, the average stock
price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or
warrants. Diluted EPS excludes all potentially dilutive shares if their effect is anti-dilutive.
The Company accounts for comprehensive
income (loss) in accordance with ASC Topic 220 " Comprehensive Income" which requires comprehensive income (loss) and
its components to be reported when a company has items of comprehensive income (loss). Comprehensive income (loss) includes net
income (loss) plus other comprehensive income (loss). There are no differences or reconciling items between net income and comprehensive
income for the years ended September 30, 2012 and 2011.
The Company accounts for its income
taxes in accordance with ASC Topic 740, which requires recognition of deferred tax assets and liabilities for future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax bases and tax credit carry-forwards.
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
operations in the period that includes the enactment date.
|Newly issued pronouncements
Newly issued pronouncements
The Company has evaluated all recent accounting pronouncements and
believes that none of them will have a material effect on the Companys financial statements.