SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended |
|---|---|
Sep. 30, 2011 | |
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Cash and
Cash Equivalents
For
the purposes of the condensed 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 September 30, 2011 and 2010.
Fair
Values of Financial Instruments
The
carrying value of current assets and liabilities approximate their
fair value due to the short-term nature.
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. For nonpublic entities, the
amendments are effective for annual periods beginning after
December 15, 2011, and should be applied prospectively. Nonpublic
entities may elect to apply the amendments early, but no earlier
than interim periods
beginning after December 15, 2011. 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. For nonpublic entities, the amendments are
effective for fiscal years ending after December 15, 2012, and
interim and annual periods thereafter. Early adoption is permitted.
The Company does not expect that the adoption of ASU 2011-05 will
have a material effect on its financial
statements.
In
September 2011, the Financial Accounting Standards Board
(“FASB”) issued an accounting standard update that
amends the accounting guidance on goodwill impairment testing. The
amendments in this accounting standard update are intended to
reduce complexity and costs by allowing an entity the option to
make a qualitative evaluation about the likelihood of goodwill
impairment to determine whether it should calculate the fair value
of a reporting unit. The amendments also improve previous guidance
by expanding upon the examples of events and circumstances that an
entity should consider between annual impairment tests in
determining whether it is more likely than not that the fair value
of a reporting unit is less than its carrying amount. The
amendments in this accounting standard update are effective for
interim and annual goodwill impairment tests performed for fiscal
years beginning after December 15, 2011. The adoption of this
accounting standard update will not have an impact on our
consolidated financial position, results of operations, or cash
flows, as it is intended to simplify the assessment for goodwill
impairment.
|