| 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. The Company’s fiscal year end
is December 31. The accompanying condensed interim financial statements of Arvana Inc. for the three months ended March 31, 2022, and
2021, 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. The condensed interim financial statements and notes appearing
in this report should be read in conjunction with our 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, 2021, as filed with the Securities and Exchange Commission (“Commission”) on April 21, 2022. Results
are not necessarily indicative of those which may be achieved in future periods. b)
Estimates The
preparation of 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. c)
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 March 31, 2022, and December 31, 2021, are as follows:
Estimated fair values
March
31, 2022 December
31, 2021
Carrying
Amount Fair
Value Carrying
Amount Fair
Value
Cash $ 3,118 $ 3,118 $ 3,340 $ 3,340
Accounts
payable and accrued liabilities 60,695 60,695 54,931 54,931
Loans
payable to stockholders 15,500 15,500 15,500 15,500
Loans
payable to related party 300 300 300 300
Amounts
due to related parties 37,038 37,038 34,194 34,194 The
following table presents information about the assets that are measured at fair value on a recurring basis as of March 31, 2022, 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:
Fair Value, Assets Measured on Recurring Basis
March
31, 2022 Quoted
Prices Significant Significant
Assets:
Cash
$ 3,118 $ 3,118 $ — $ — The
fair value of cash is determined through market, observable, and corroborated sources. d)
Recent accounting pronouncements New
and amended standards adopted by the Company The
were no new standards adopted by the Company in this reporting period. |
