Fair Value of Financial Instruments
measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair
value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability,
as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that
market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes
a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques,
are assigned a hierarchical level.
are the hierarchical levels of inputs to measure fair value:
||Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.|
||Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.|
||Level 3: Unobservable inputs reflecting the Companys assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.|
financial instruments consisted primarily of accounts payable and due to related party. The carrying amounts of the Companys
financial instruments generally approximated their fair values as of August 31,2012, respectively, due to the short-term nature
of these instruments.