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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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6 Months Ended |
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Jun. 30, 2011
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| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Cash and
Cash Equivalents
For
the purposes of the consolidated statements of cash flow, the
Company considers all highly liquid debt instruments purchased with
an original maturity of three months or less to be cash
equivalents.
Use of
Estimates
The
preparation of the financial statements in conformity with U.S.
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 reported
amounts of revenues and expenses during the reporting
period. Actual results could differ from those
estimates.
Net Loss
Per Common Share
Basic
earnings per share is computed using the weighted average number of
common shares outstanding during the period. It also assumes that
outstanding common shares were increased by shares issuable upon
exercise of those stock options and warrants for which the market
price exceeds exercise price, less shares which we could have
purchased with related proceeds. There are no dilutive financial
instruments as of June 30, 2011 and 2010.
Fair
Values of Financial Instruments
The
Company uses financial instruments in the normal course of
business. The carrying values of accrued expenses
approximate their fair value due to the short-term maturities of
these liabilities.
Income
Taxes
The
Company has adopted the provisions of Financial Accounting
Standards Board Accounting Standards Codification (FASB ASC) 740,
Accounting for Income Taxes. The Company accounts for income taxes
pursuant to the provisions of the ASC 740, Accounting for Income
Taxes, which requires an asset and liability approach to
calculating deferred income taxes. The asset and liability approach
requires the recognition of deferred tax liabilities and assets for
the expected future tax consequences of temporary differences
between the carrying amounts and the tax basis of assets and
liabilities.
Recent
Accounting Pronouncements
In
May 2011, FASB issued ASU No. 2011-04 “Fair Value Measurement
(Topic 820): Amendments to Achieve Common Fair Value Measurement
and Disclosure Requirements in U.S. GAAP and IFRSs”.
The amendments in this Update result in common fair value
measurement and disclosure requirements in U.S. GAAP and IFRSs.
Consequently, the amendments change the wording used to describe
many of the requirements in U.S. GAAP for measuring fair value and
for disclosing information about fair value measurements.
Some of the amendments clarify the Board’s intent about
the application of existing fair value measurement requirements.
Other amendments change a particular principle or requirement for
measuring fair value or for disclosing information about fair value
measurements. ASU 2011-04 shall be effective for public entities
for interim and annual periods beginning after December 15, 2011,
and should be applied prospectively. Early adoption is not
permitted for public entities. The Company does not expect that the
adoption of ASU 2011-04 will have a material effect on its
financial statements.
In
June 2011, FASB issued ASU No. 2011-05 “Comprehensive Income
(Topic 220): Presentation of Comprehensive Income”. Under the
amendments to Topic 220, “Comprehensive Income”, 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. The amendments in this Update should be applied
retrospectively. For public entities, the amendments are effective
for fiscal years, and interim periods within those years, beginning
after December 15, 2011. Although early adoption is permitted, the
company has not yet adopted it. The Company does not expect that
the adoption of ASU 2011-05 will have a material effect on its
financial statements.
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