Quarterly report pursuant to sections 13 or 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 v2.3.0.11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
9 Months Ended
Jul. 31, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

a) Basis of Presentation

The financial statements of the Company have been prepared in accordance with

generally accepted accounting principles in the United States of America and are

presented in US dollars.

 

b) Going Concern

The financial statements have been prepared on a going concern basis which

assumes the Company will be able to realize its assets and discharge its

liabilities in the normal course of business for the foreseeable future. The

Company has incurred losses since inception resulting in an accumulated deficit

of $29,728 as of July 31, 2011, and further losses are anticipated in the

development of its business raising substantial doubt about the Company's

ability to continue as a going concern. The ability to continue as a going

concern is dependent upon the Company generating profitable operations in the

future and/or to obtain the necessary financing to meet its obligations and

repay its liabilities arising from normal business operations when they come

due. Management intends to finance operating costs over the next twelve months

with existing cash on hand and loans from directors and or private placement of

common stock.

 

c) Cash and Cash Equivalents

The Company considers all highly liquid instruments with a maturity of three

months or less at the time of issuance to be cash equivalents.

 

d) Use of Estimates and Assumptions

The preparation of financial statements in conformity with accounting principles

generally accepted in the United States 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.

 

e) Foreign Currency Translation

The Company's functional currency is the British Pound and its reporting

currency is the United States dollar.

 

f) Financial Instruments

Fair value measurements are determined based on the assumptions that market

participants would use in pricing an asset or liability. ASC 820-10 establishes

a hierarchy for inputs used in measuring fair value that maximizes the use of

observable inputs and minimizes the use of unobservable inputs by requiring that

the most observable inputs be used when available. FASB ASC 820 establishes a

fair value hierarchy that prioritizes the use of inputs used in valuation

methodologies into the following three levels:

 

     *    Level 1: Quoted prices (unadjusted) for identical assets or

          liabilities in active markets. A quoted price in an active market

          provides the most reliable evidence of fair value and must be used to

          measure fair value whenever available.

 

     *    Level 2: Significant other observable inputs other than Level 1 prices

          such as quoted prices for similar assets or liabilities; quoted prices

          in markets that are not active; or other inputs that are observable or

          can be corroborated by observable market data.

 

     *    Level 3: Significant unobservable inputs that reflect a reporting

          entity's own assumptions about the assumptions that market

          participants would use in pricing an asset or liability. For example,

          level 3 inputs would relate to forecasts of future earnings and cash

          flows used in a discounted future cash flows method.

 

The recorded amounts of financial instruments, including cash equivalents

accounts payable and accrued expenses, and long-term debt approximate their

market values as of July 31, 2011

 

g) Stock-based Compensation

We follow ASC 718-10, "Stock Compensation", which addresses the accounting for

transactions in which an entity exchanges its equity instruments for goods or

services, with a primary focus on transactions in which an entity obtains

employee services in share-based payment transactions. ASC 718-10 is a revision

to SFAS No. 123, "Accounting for Stock-Based Compensation," and supersedes

Accounting Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued

to Employees," and its related implementation guidance. ASC 718-10 requires

measurement of the cost of employee services received in exchange for an award

of equity instruments based on the grant-date fair value of the award (with

limited exceptions). Incremental compensation costs arising from subsequent

modifications of awards after the grant date must be recognized. The Company has

not adopted a stock option plan and has not granted any stock options. The

Company granted stock awards, at par value, to its officers, directors and

advisors for services rendered in its formation. Accordingly, stock-based

compensation has been recorded to date.

 

h) Income Taxes

Income taxes are accounted for under the assets and liability method. Deferred

tax assets and liabilities are recognized for the estimated future tax

consequences attributable to differences between the financial statement

carrying amounts of existing assets and liabilities and their respective tax

bases and operating loss and tax credit carry forwards. Deferred tax assets and

liabilities are measured using enacted tax rates in effect for the year in which

those temporary differences are expected to be recovered or settled.

 

i) Basic and Diluted Net Loss per Share

The basic earnings (loss) per share are calculated by dividing the Company's net

income available to common shareholders by the weighted average number of common

shares during the year. The diluted earnings (loss) per share is calculated by

dividing the Company's net income (loss) available to common shareholders by the

diluted weighted average number of shares outstanding during the year. The

diluted weighted average number of shares outstanding is the basic weighted

number of shares adjusted for any potentially dilutive debt or equity.

Because the Company does not have any potentially dilutive securities, the

accompanying presentation is only of basic loss per share. Diluted earnings

(loss) per share are the same as basic earnings (loss) per share due to the lack

of dilutive items in the Company

 

j) Fiscal Periods

The Company's fiscal year end is October 31.

 

k) Recent Accounting Pronouncements

In June 2009, the FASB issued guidance now codified as ASC 105, Generally

Accepted Accounting Principles as the single source of authoritative accounting

principles recognized by the FASB to be applied by nongovernmental entities in

the preparation of financial statements in conformity with U.S. GAAP, aside from

those issued by the SEC. ASC 105 does not change current U.S. GAAP, but is

intended to simplify user access to all authoritative U.S. GAAP by providing all

authoritative literature related to a particular topic in one place. The

adoption of ASC 105 did not have a material impact on the Company's financial

statements, but did eliminate all references to pre-codification standards.

 

In February 2010, the FASB issued Accounting Standards Update ("ASU")

No.2010-09, "Amendments to Certain Recognition and Disclosure Requirements"

("ASU2010-09"), which is included in the FASB Accounting Standards Codification

(the "ASC") Topic 855 (Subsequent Events). ASU 2010-09 clarifies that an SEC

filer is required to evaluate subsequent events through the date that the

financial statements are issued. ASU 2010-09 is effective upon the issuance of

the final update and did not have a significant impact on the Company's

financial statements.

 

The Company has implemented all new accounting pronouncements that are in effect

and that may impact its financial statements and 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.