NOTE 3: RECENT ACCOUNTING
In October 2012, the Financial Accounting Standards
Board (FASB) issued Accounting Standards Update (ASU) 2012-04, ''Technical Corrections and Improvements" in Accounting Standards
Update No. 2012-04. The amendments in this update cover a wide range of Topics in the Accounting Standards Codification. These
amendments include technical corrections and improvements to the Accounting Standards Codification and conforming amendments related
to fair value measurements. The amendments in this update will be effective for fiscal periods beginning after December 15, 2012.
The adoption of ASU 2012-04 is not expected to have a material impact on our financial position or results of operations.
In August 2012, the FASB issued ASU 2012-03,
"Technical Amendments and Corrections to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin
(SAB) No. 114, Technical Amendments Pursuant to SEC Release No. 33-9250, and Corrections Related to FASB Accounting Standards Update
2010-22 (SEC Update)" in Accounting Standards Update No. 2012-03. This update amends various SEC paragraphs pursuant to the
issuance of SAB No. 114. The adoption of ASU 2012-03 is not expected to have a material impact on our financial position or results
In July 2012, the FASB issued
ASU 2012-02, "Intangibles -Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment"
in Accounting Standards Update No. 2012-02. This update amends ASU 2011-08, Intangibles -Goodwill and Other (Topic 350): Testing
Indefinite-Lived Intangible Assets for Impairment and permits an entity first to assess qualitative factors to determine whether
it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary
to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles -Goodwill and Other -General Intangibles
Other than Goodwill. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning
after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date
before July 27, 2012, if a public entity's financial statements for the most recent annual or interim period have not yet been
issued or, for nonpublic entities, have not yet been made available for issuance. The adoption of ASU 2012-02 is not expected to
have a material impact on our financial position or results of operations.
In September 2011 Accounting Standards
Update No. 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for impairment. This ASU's objective is to simplify
the process of performing impairment testing for Goodwill. With this update a company is allowed to asses qualitative factors,
first, to determine if it is more likely than not (greater than 50%) that the FV is less than the carrying amount. This would be
done, prior to performing the two-step goodwill impairment testing, as prescribed by Topic 350. Prior to this ASU, all entities
were required to test, annually, their good will for impairment by Step 1 - comparing the FV to the carrying amount, and if impaired,
then step 2 - calculate and recognize the impairment. Therefore, the fair value measurement is not required, until the "more
likely than not" reasonableness test is concluded. Effective for annual and interim goodwill impairment tests performed for
fiscal years beginning after December 15, 2011.
In May 2011, FASB issued Accounting
Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure
Requirements in U.S. GAAP and IFRSs . This ASU clarifies the board's intent of current guidance, modifies
and changes certain guidance and principles, and adds additional disclosure requirements concerning the 3 levels of fair value
measurements. Specific amendments are applied to FASB ASC 820-10-35, Subsequent Measurement and FASB ASC 820-10-50, Disclosures.
This ASU is effective for interim and annual periods beginning after December 15, 2011.
In June 2011, FASB issued Accounting
Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. - ASU 2011-05. Current
US GAAP allows companies to present the components of comprehensive income as a part of the statement of changes in stockholders'
equity. This ASU eliminates that option. in this Update, an
entity has the option to present the total of comprehensive income, the components of net income, and the components of other
comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements.
In both choices, an entity is required to present each component of net income along with total net income, each component of other
comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income This ASU is
effective interim and annual periods beginning after December 15, 2011. This ASU should be applied retrospectively. There
are no specific transition disclosures
In December 2010, the FASB Accounting
Standards Update 2010-29 Business Combinations Topic 805, which requires a public entity to disclose pro forma information for
business combinations that occurred in the current reporting period. The disclosures include pro forma revenue and earnings of
the combined entity for the current reporting period as though the acquisition date for all business combinations that occurred
during the year had been as of the beginning of the annual reporting period. If comparative financial statements are presented,
the pro forma revenue and earnings of the combined entity for the comparable prior reporting period should be reported as though
the acquisition date for all business combinations that occurred during the current year had been as of the beginning of the comparable
prior annual reporting period. Effective for business combinations for which the acquisition date is on or after the beginning
of the first annual reporting period beginning on or after December 15, 2010.
The Company has implemented all new accounting
pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise
disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might
have a material impact on its financial position or results of operations.