NOTE 2 - Summary of
Significant Accounting Policies
The financial statements
of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America.
Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements
for a period necessarily involves the use of estimates, which have been made using careful judgment. Actual results may vary from
The financial statements
have, in management's opinion, been properly prepared within the framework of the significant accounting policies summarized below:
Development Stage Company
The Company complies
with the FASB Accounting Standards Codification (ASC) Topic 915 Development Stage Entities for it characterization of the Company
as development stage.
Impairment of Long
Lived Assets Long-lived assets are reviewed for impairment in accordance with ASC Topic 360, "Accounting for the Impairment
or Disposal of Long- lived Assets". Under ASC Topic 360, long-lived assets are tested for recoverability whenever events or
changes in circumstances indicate that their carrying amounts may not be recoverable. An impairment charge is recognized or the
amount, if any, which the carrying value of the asset exceeds the fair value.
Translation The Company
is located and operating outside of the United States of America. It maintains its accounting records in U.S. Dollars, as follows:
At the transaction
date, each asset, liability, revenue, and expense is translated into U.S. dollars by the use of exchange rates in effect at that
date. At the period end, monetary assets and liabilities are remeasured by using the exchange rate in effect at that date. The
resulting foreign exchange gains and losses are included in operations.
The Company's currency
exposure is insignificant and immaterial and we do not use derivative instruments to reduce its potential exposure to foreign currency
The carrying value
of the Company's financial instruments consisting of cash equivalents and accounts payable and accrued liabilities approximates
their fair value because of the short maturity of these instruments. 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.
The Company uses the
assets and liability method of accounting for income taxes in accordance with FASB Topic 740 "Accounting for Income Taxes".
Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary
differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases.
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.
Basic and Diluted Net
Loss Per Share
In accordance with
FASB Topic 260, "Earnings Per Share', the basic net loss per common share is computed by dividing net loss available to common
stockholders by the weighted average number of common shares outstanding. Diluted net loss per common share is computed similar
to basic net loss per common share except that the denominator is increased to include the number of additional common shares that
would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As
October 31, 2011, diluted net loss per share is equivalent to basic net loss per share.
Stock Based Compensation
The Company accounts
for stock options and similar equity instruments issued in accordance with ASC Topic 718 Compensation- Stock Compensation. Accordingly,
compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant
date, and expensed over the expected vesting period. Transactions in which goods or services are received in exchange for the issuance
of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instruments
issued, whichever is more reliably measurable ASC Topic 718 requires excess tax benefits be reported as a financing cash inflow
rather than as a reduction of taxes paid.
The Company did not
grant any stock options during the period ended October 31, 2012.
The Company adopted
FASB Topic 220, Comprehensive Income, which establishes standards for reporting and display of comprehensive income, its components
and accumulated balances. The Company is disclosing this information on its Statement of Stockholders' Equity. Comprehensive income
comprises equity except those resulting from investments by owners and distributions to owners.
The Company has no
elements of "other comprehensive income" during the period ended October 31, 2012.
New Accounting Standards
Management does not believe that any recently issued, but not yet effective accounting standards if currently adopted could have
a material effect on the accompanying financial statements.