2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
12 Months Ended |
---|---|
Mar. 31, 2012
|
|
Significant Accounting Policies [Text Block] |
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.
a) Cash
Cash
consists of cash on deposit with a high quality major
financial institution.
b) Use
of Estimates and Assumptions
The
preparation of financial statements in conformity with United
States 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 of the
financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could
differ from those estimates.
c) Financial
Instruments
The
carrying values of the Company’s financial instruments,
consisting of cash, accounts payable and accrued liabilities,
and due to related party, approximate their fair value
because of the short maturity of these instruments. The
Company’s operations are outside the United States and
some of its assets and liabilities have exposure to market
risks from changes in foreign currency rates. The
Company’s financial risk is the risk that arises from
fluctuations in foreign exchange rates and the degree of
volatility of these rates. Currently, the Company does not
use derivative instruments to reduce its exposure to foreign
currency risk.
d) Income
Taxes
The
Company uses the asset and liability method of accounting for
income taxes in accordance with ASC 740, “Income
Taxes”. This standard requires the use of an asset and
liability approach for financial accounting and reporting on
income taxes. If it is more likely than not that some portion
or all of a deferred tax asset will not be realized, a
valuation allowance is recognized.
e) Foreign
Currency Translation
The
Company’s reporting and functional currency is the U.S.
dollar. Non-U.S. dollar transactions are translated at the
exchange rate prevailing at the time of the transaction.
Non-U.S. dollar monetary assets and liabilities are
translated at period-end exchange rates and exchange gains
and losses are reflected in operations.
f) Basic
and Diluted Net Loss per Share
The
Company reports loss per share in accordance with ASC 260,
“Earnings per Share”. Basic loss per share is
computed using the weighted average number of shares of
common stock outstanding during the period. Diluted loss per
share is computed using the weighted average number of shares
of common stock and potentially dilutive securities
outstanding during the period (none for the periods
presented). The Company has no stock option plan and has not
issued any warrants or other potentially dilutive
securities.
g) Deferred
Offering Costs
Deferred
offering costs represent legal fees incurred in connection
with the preparation of a Form S-1 registration statement
relating to a planned public offering of shares of our common
stock. If the offering is successful, the costs will be
charged to additional paid-in capital. If the offering is
unsuccessful, the costs will be expensed.
h) Recently
Issued Accounting Pronouncements
Certain
accounting pronouncements have been issued by the FASB and
other standard setting organizations which are not yet
effective and have not yet been adopted by the Company. The
impact on the Company’s financial position and results
of operations from adoption of these standards is not
expected to be material.
|