| Note 2: Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of presentation The Company is in the process of transacting
a business opportunity and has minimal operating levels. The Company’s fiscal year end is December 31. The accompanying condensed
interim consolidated financial statements of Arvana Inc. for the nine months ended September 30, 2017 and 2016, have been prepared
in accordance with accounting principles generally accepted in the United States (“US GAAP”) for financial information
with the instructions to Form 10-Q and Regulation S-X. Results are not necessarily indicative of results which may be achieved
in the future. Although they are unaudited, in the opinion of management, they include all adjustments, consisting only of normal
recurring items, necessary for a fair presentation. Results are not necessarily indicative of results which may be achieved in
the future. The condensed consolidated interim financial statements and notes appearing in this report should be read in conjunction
with our consolidated audited financial statements and related notes thereto, together with Management’s Discussion and Analysis
of Financial Condition and Results of Operations, contained in our Annual Report on Form 10-K for the fiscal year ended December
31, 2016, as filed with the Securities and Exchange Commission (“SEC”) on April 7, 2017. Use of Estimates The preparation of consolidated financial statements
in conformity with US GAAP 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. These estimates include
the recognition of deferred tax assets based on the change in unrecognized deductible temporary tax differences. Financial instruments The Company uses the following methods and
assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values: Cash - the carrying amount approximates fair
value because the amounts consist of cash held at a bank. Accounts payable and accrued liabilities and
loans payable - the carrying amount approximates fair value due to the short-term nature of the obligations. The estimated fair values of the Company's
financial instruments as of September 30, 2017 and December 31, 2016 follows:
September
30, 2017 December
31, 2016
Carrying Amount Fair Value Carrying Amount Fair Value
Cash $ 8,622 $ 8,622 $ 6,045 $ 6,045
Accounts payable and accrued liabilities 1,048,505 1,048,505 955,632 955,632
Convertible loan 47,918 47,918 35,417 35,417
Loans
payable to stockholders 596,834 596,834 564,399 564,399
Loans payable to related
party 131,116 131,116 129,556 129,556
Loans
payable 75,813 75,813 47,448 47,448
Amounts due to related parties 548,402 548,402 525,954 525,954 The following table presents information about
the assets that are measured at fair value on a recurring basis as of September 30, 2017, and indicates the fair value hierarchy
of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs
utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data
points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are
unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for
the asset:
September 30, 2017 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)
Assets:
Cash $ 8,622 $ 8,622 $ — $ — The fair value of cash is determined through
market, observable and corroborated sources. Recent accounting pronouncements In January 2016, the Financial Accounting Standards
Board (FASB) issued Accounting Standards Update (ASU) 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition
and Measurement of Financial Assets and Financial Liabilities. In February 2016, the FASB issued ASU 2016-02,
Leases (Topic 842). In March 2016, the FASB issued ASU 2016-9,
Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In June 2016, the FASB issued ASU 2016-13,
Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In November 2016, the FASB issued ASU 2016-18,
requiring that restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the
beginning-of-period and end-of-period total cash amounts shown on the statement of cash flows. Consequently, transfers between
cash and restricted cash will not be presented as a separate line item in the operating, investing or financing sections of the
cash flow statement. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017,
and interim periods within those fiscal years. The Company considers that ASU 2016-18 will have a limited impact on the presentation
of the statement of cash flows. In March 2017, the FASB issued ASU 2017-07,
requiring certain changes to the presentation of the expenses related to postretirement benefits accounted for under Topic 715.
The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods
within those fiscal years. The Company is currently assessing the impact adoption of this standard will have on its consolidated
results of operations, financial condition, cash flows, and financial statement disclosures. |
