| Nature of Business and Significant Accounting Policies | Note 1. Nature of Business and Significant Accounting Policies Nature of business and principles of consolidation: The accompanying Condensed Financial Statements
of Tara Gold Resources Corp. (Tara Gold or the Company) should be read in conjunction with the Companys
Annual Report on Form 10-K for the year ended December 31, 2014. Significant accounting policies disclosed therein have not changed,
except as noted below. Tara Gold was incorporated on October 14, 1999
under the laws of the State of Nevada as Westnet Communication Group. By special resolution of the shareholders, Westnet Communication
Group changed its name to Tara Gold Resources, Corp. on February 9, 2006. In May 2005, Tara Gold, through its subsidiary
Corporacion Amermin S.A. de C.V. (Amermin), began acquiring mining properties in Mexico. In May 2006, Tara Gold formed
Firma Holdings Corp. (Firma Holdings), formerly known as Tara Minerals Corp. Tara Golds operations
in Mexico were conducted through Amermin and Firma Holdings Mexico subsidiaries, since Mexican law provides that only Mexican
corporations are allowed to own mining properties. All of Tara Golds operations in Mexico were conducted through its Mexican
subsidiaries. In December 2014, the Company discontinued Amermin
and sold its interest in the common stock of Amermin for $100 to an independent third party in Mexico. On May 25, 2011, Tara Gold commenced distributing
its shares of Firma Holdings to its shareholders by distributing one share of Firma Holdings for every 20 outstanding shares of
Tara Gold. In November 2014 the Board of Directors of the Company approved the final dividend of its ownership in Firma Holdings
to be issued and concurrently made application with FINRA on the distribution. Final execution of the dividend
occurred in February 2015. After the distribution the Company had neither interest in the assets nor any obligation
for any liabilities of Firma Holdings. As the Directors approval and FINRA application were both made in November 2014,
the Company deconsolidated Firma Holdings and its subsidiaries as of December 31, 2014. In these financial statements, unless otherwise
indicated, all references to "Company," "we," "our," and/or "us," refer to Tara Gold. The 2015 financial statements represent the
standalone financial statements of the Company except for the presentation of discontinued operations of its former subsidiary
Amermin, and the deconsolidation of Firma Holdings. The 2014 consolidated financial statements include the financial
statements of the Company and its subsidiaries except for the presentation of its former subsidiary Amermin. All amounts are in
U.S. dollars unless otherwise indicated. All significant inter-company balances and transactions have been eliminated in consolidation
as applicable. The accompanying condensed financial statements
and the related footnote information are unaudited. In the opinion of management, they include all normal recurring
adjustments necessary for a fair presentation of the condensed balance sheets of the Company as of June 30, 2015 and December 31,
2014, the condensed results of its operations for the three and six months ended June 30, 2015 and 2014 and the condensed statements
of cash flows for the six months ended June 30, 2015 and 2014. Results of operations reported for interim periods are not necessarily
indicative of results for the entire year. The reporting currency of the Company is the
U.S. dollar. The functional currency of Amermin and any Mexican subsidiary is the Mexican Peso. As a result, the financial
statements of these subsidiaries have been re-measured from Mexican pesos into U.S. dollars using (i) current exchange rates for
monetary asset and liability accounts, (ii) historical exchange rates for non-monetary asset and liability accounts, (iii) historical
exchange rates for revenues and expenses associated with non-monetary assets and liabilities, and (iv) the weighted average exchange
rate of the reporting period for all other revenues and expenses. In addition, foreign currency transaction gains and losses resulting
from U.S. dollar denominated transactions are eliminated. The resulting re-measurement gain (loss) is recorded to other comprehensive
gain (loss). Relevant exchange rates used in the preparation
of the financial statements for Amermin and any of Firma Holdings Mexican subsidiaries are as follows for the three months ended
June 30, 2014. The company had no foreign operations in 2015. Mexican pesos per one U.S. dollar:
June 30, 2014
Current exchange rate Ps. 13.0002
Weighted average exchange rate for the three months ended Ps. 13.1171 The Companys significant accounting policies are: Reclassifications Certain reclassifications, which have no effect
on net loss, have been made in the prior period financial statements to conform to the current year presentation, specifically
the 2014 presentation of discontinued operation for Amermin on the statement of operations. Estimates The preparation of financial statements in conformity
with 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. Management routinely makes judgments on historical experience
and various other factors that are believed to be reasonable under the circumstances. Actual results could differ from those
estimates. Financial and Derivative Instruments The Company periodically enters into financial
instruments. Upon entry, each instrument is reviewed for debt or equity treatment. In the event that the debt or equity
treatment is not readily apparent, Financial Accounting Standards Board Accounting Standards Codification (FASB ASC)
480-10-S99 is consulted for temporary treatment. Once an event takes place that removes the temporary element the Company
appropriately reclassifies the instrument to debt or equity. The Company periodically assesses its financial
and equity instruments to determine if they require derivative accounting. Instruments which may potentially require derivative
accounting are conversion features of debt, equity, and common stock equivalents in excess of available authorized common shares,
and contracts with variable share settlements. In the event of derivative treatment, the instrument is marketed to market. Fair Value Accounting As required by the Fair Value Measurements and
Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs,
other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs
in which there is little or no market data, which require the reporting entity to develop its own assumptions. The three levels of the fair value hierarchy are described below:
Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;
Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Recently Adopted and Recently Issued Accounting Guidance Recent accounting pronouncements issued by the
FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC, did not,
or are not believed by management to, have a material impact on the Company's present or future financial position, results of
operations or cash flows. |
