SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES |
6 Months Ended |
|---|---|
Aug. 31, 2011 | |
| SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES |
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING
PRACTICES
Accounting Basis
The Company is currently a development stage enterprise reporting
under the provisions of Accounting Standards Codification ("ASC")
915 "Development Stage Enties", which was previously Statement of
Financial Accounting Standards ("SFAS") No. 7.
The accompanying unaudited financial statements have been prepared
in accordance with generally accepted accounting principles in the
United States of America for interim financial information and with
the instructions to Form 10-Q and Regulation S-X. Accordingly, the
financial statements do not include all of the information and
footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all
adjustments considered necessary for a fair presentation have been
included and such adjustments are of a normal recurring nature.
These financial statements should be read in conjunction with the
financial statements for the year ended February 28, 2011 and notes
thereto and other pertinent information contained in our Form S-1/A
the Company has filed with the Securities and Exchange Commission
(the "SEC").
The results of operations for the three month period ending August
31, 2011 are not necessarily indicative of the results for the full
fiscal year ending February 28, 2012.
Cash and Cash Equivalents
For the purpose of the financial statements cash equivalents
include all highly liquid investments with maturity of three months
or less.
Earnings (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 outstanding during the
year. The diluted earnings (loss) per share are 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
as of the first of the year for any potentially dilutive debt or
equity. There are no diluted shares outstanding for any periods
reported.
Dividends
The Company has not adopted any policy regarding payment of
dividends. No dividends have been paid during the periods shown,
and none are contemplated in the near future.
Income Taxes
The Company adopted FASB ASC 740, Income Taxes, at its inception
deferred tax assets and liabilities are recognized for the future
tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and
their respective tax bases. Deferred tax assets, including tax loss
and credit carryforwards, 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. The effect on deferred tax assets and liabilities of a
change in tax rates is recognized in income in the period that
includes the enactment date. Deferred income tax expense represents
the change during the period in the deferred tax assets and
deferred tax liabilities. The components of the deferred tax assets
and liabilities are individually classified as current and
non-current based on their characteristics. Deferred tax assets are
reduced by a valuation allowance when, in the opinion of
management, it is more likely than not that some portion or all of
the deferred tax assets will not be realized. No deferred tax
assets or liabilities were recognized as of August 31,
2011.
Advertising
The Company will expense advertising as incurred. The advertising
since inception has been $0.00.
Use of Estimates
The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of
America 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 revenue and
expenses during the reporting period. Actual results could differ
from those estimates.
Revenue and Cost Recognition
The Company has no current source of revenue; therefore the Company
has not yet adopted any policy regarding the recognition of revenue
or cost.
Property
The company does not own any real estate or other properties. The
business office is located at the home of Don Ptalis, the CEO of
the company at no charge to the company.
Recently Issued Accounting Pronouncements
The Company has adopted all recently issued accounting
pronouncements. The adoption of the accounting pronouncements,
including those not yet effective, is not anticipated to have a
material effect on the financial position or results of operations
of the Company.
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