| Note 2: Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies a) Basis of presentation The Company is in the process of evaluating
business opportunities and has minimal operating expenses. Our fiscal year end is December 31. The accompanying consolidated financial
statements of Arvana Inc. for the years ended December 31, 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-K and
Regulation S-K. Results are not necessarily indicative of results which may be achieved in the future. b) Basis of consolidation Included in the financial statements are the
accounts of the Company, its wholly-owned inactive subsidiaries: Arvana Networks, Arvana Par, and Arvana Com. All inter-company
transactions and balances have been eliminated. c) 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. d) Foreign currency translation and transactions Transactions conducted in foreign currencies
are recorded using the exchange rate in effect on the transaction date. At the period end, monetary assets and liabilities are
translated to the functional currency of each entity using the exchange rate in effect at the period end date. Transaction gains
and losses are recorded in foreign exchange gain or loss in the statement of operations and comprehensive loss. e) Comprehensive income (loss) The Company considers comprehensive income
(loss) as a change in equity (net assets) of a business entity during a period from transactions and other events and circumstances
from non-owner sources. It includes all changes in equity during a period except those resulting from investments by owners and
distributions to owners. f) Cash equivalents The Company considers all highly liquid investments,
with terms to maturity of three months or less when acquired, to be cash equivalents. g) 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, convertible
loan, loans payable and amounts due to related parties - 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 December 31, 2017 and December 31, 2016 follows:
December 31, 2017
December 31, 2016
Carrying Amount
Fair Value
Carrying Amount
Fair Value
Cash $ 4,730 $ 4,730 $ 6,045 $ 6,045
Accounts payable and accrued liabilities 1,075,409 1,075,409 955,632 955,632
Convertible loan 50,000 50,000 35,417 35,417
Loans payable to stockholders 600,651 600,651 564,399 564,399
Loans payable to related party 131,000 131,000 129,556 129,556
Loans payable 75,813 75,813 47,448 47,448
Amounts due to related parties $ 549,132 $ 549,132 $ 525,954 $ 525,954 The following table presents information about
the assets that are measured at fair value on a recurring basis as of December 31, 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:
December 31, 2017 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)
Assets:
Cash $ 4,730 $ 4,730 $ — $ — The fair value of cash is determined through
market, observable and corroborated sources. h) Concentration of credit risk Financial instruments that potentially subject
the Company to concentrations of credit risk consist of cash. The Company maintains cash in bank accounts that, at times, may exceed
federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant
risks on its cash in bank accounts. i) Income taxes A deferred tax asset or liability is recorded
for all temporary differences between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit)
results from the net change during the year of deferred tax assets and liabilities. 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. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date
of enactment. j) Stock-based compensation The Company accounts for all stock-based payments
to employees and non-employees under ASC 718 “Stock Compensation,” using the fair value method. Under the fair value
method, stock-based payments are measured at the fair value of the consideration received, or the fair value of the equity instruments
issued, or liabilities incurred, whichever is more reliably measurable. The cost of stock-based payments to non-employees that
are fully vested and non-forfeitable at the grant date is measured and recognized at that date. k) Beneficial conversion feature From time to time, the Company may issue convertible
notes that may have conversion prices that create an embedded beneficial conversion feature. A beneficial conversion feature exists
on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into
is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note
proceeds to the fair value of any attached equity instruments, if any related equity instruments were granted with the debt. The
intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid
in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method. l) Earnings (loss) per share Basic earnings (loss) per share are computed
using the weighted average number of common shares outstanding during the year. Diluted earnings (loss) per share are computed
using the weighted average number of common shares and potentially dilutive common stock equivalents, including stock options
and warrants. There were no outstanding stock options or warrants as at December 31, 2017 and 2016. m) Recent accounting pronouncements In February 2016, the Financial Accounting
Standards Board (FASB) issued Accounting Standards Update 2016-02, Leases (Topic 842). In June 2016, the Financial Accounting Standards
Board (FASB) issued Accounting Standards Updates ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement
of Credit Losses on Financial Instruments In November 2016, the Financial Accounting
Standards Board (FASB) issued Accounting Standards Updates 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. |
