| Note 2. Significant Accounting Policies | This
summary of significant accounting policies of Eason Education Kingdom Holdings, Inc. is presented to assist in understanding the
Companys financial statements. The financial statements and notes are representations of the Companys management,
which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally
accepted in the United States of America (GAAP) and have been consistently applied in the preparation of the financial
statements. Cash
and Cash Equivalents The
Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.
The Company currently has cash held in a trust account held by the Companys legal counsel. Fair
Value of Financial Instruments Effective
January 1, 2008, the Company adopted FASB ASC 820, Fair Value Measurements, which provides a framework for measuring fair value
under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an
exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants
on the measurement date. The standard also expands disclosures about instruments measured at fair value and establishes a fair
value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs
when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level
1 Quoted prices for identical assets and liabilities in active markets; Level
2 Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and
liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value
drivers are observable in active markets; and Level
3 Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are
unobservable. The
Company designates cash equivalents as Level 1. The total amount of the Companys investment classified as Level 3 is de
minimis. The
fair value of the Companys debt as of December 31, 2016 and 2015 approximated fair value at those times. Fair
value of financial instruments: The carrying amounts of financial instruments, including cash, accounts payable, and accrued expenses
approximated fair value as of December 31, 2016 and 2015 because of the relative short term nature of these instruments. Revenue
Recognition The
Company recognizes revenue, in accordance with ASC 605, Revenue Recognition, which codified the Securities and Exchange Commission
Staff Accounting Bulletin (SAB) number 104, which states that revenue is generally recognized when it is realized and earned.
Specifically, the Company recognizes revenue when services are performed and projects are completed and accepted by the customer. Use
of Estimates The
preparation of financial statements in conformity with generally accepted accounting principles in the United States of America
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 periods. Management makes these estimates using the best information available at the time the estimates
are made; however actual results could differ materially from those estimates. Income
Taxes The
Company accounts for income taxes under an asset and liability approach. This process involves calculating the temporary and permanent
differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for
income tax purposes. The temporary differences result in deferred tax assets and liabilities, which would be recorded on the Companys
balance sheets in accordance with ASC 740, Income Taxes, which established financial accounting and reporting standards for the
effect of income taxes. The Company must assess the likelihood that its deferred tax assets will be recovered from future taxable
income and, to the extent the Company believes that recovery is not likely, the Company must establish a valuation allowance.
Changes in the Companys valuation allowance in a period are recorded through the income tax provision on the statements
of operations. The
Company records interest and penalties arising from the underpayment of income taxes in the statement of income under general
and administrative expenses. As of December 31, 2016 and 2015, the Company had no accrued interest or penalties related to
uncertain tax positions. The company also did not have any uncertain tax benefits during these years. The tax years 2015, 2014
and 2013 remain open to examination. Earnings
(Loss) per Share The
Company is required to provide basic and dilutive earnings (loss) per common share information. The
basic net loss per common share is computed by dividing the net loss applicable to common stockholders by the weighted average
number of common shares outstanding. Diluted
net loss per common share is computed by dividing the net loss applicable to common stockholders, adjusted on an as if
converted basis, by the weighted average number of common shares outstanding plus potential dilutive securities. For
the year ended December 31, 2016 and 2015, potential dilutive securities had an anti-dilutive effect and were not included in
the calculation of diluted net loss per common share. Recent
Accounting Pronouncements The
FASB has issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments Overall (Subtopic 825-10): Recognition
and Measurement of Financial Assets and Financial Liabilities. The new guidance is intended to improve the recognition and measurement
of financial instruments. The ASU affects public and private companies, not-for-profit organizations, and employee benefit plans
that hold financial assets or owe financial liabilities. The
new guidance makes targeted improvements to existing U.S. GAAP by:
- Requiring
equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation
of the investee) to be measured at fair value with changes in fair value recognized in net income;
- Requiring public
business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes;
- Requiring separate
presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities
or loans and receivables) on the balance sheet or the accompanying notes to the financial statements;
- Eliminating the
requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not
public business entities;
- Eliminating the
requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value
that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and
- Requiring a reporting
organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability
resulting from a change in the instrument-specific credit risk (also referred to as own credit) when the organization
has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The
new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within
those fiscal years. For private companies, not-for-profit organizations, and employee benefit plans, the new guidance becomes
effective for fiscal years beginning after December 15, 2018, and for interim periods within fiscal years beginning after December
15, 2019. The new guidance permits early adoption of the own credit provision. In addition, the new guidance permits early adoption
of the provision that exempts private companies and not-for-profit organizations from having to disclose fair value information
about financial instruments measured at amortized cost. The
FASB has issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than
Inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until
the asset has been sold to an outside party. This prohibition on recognition is an exception to the principle of comprehensive
recognition of current and deferred income taxes in GAAP. The
amendments require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory
when the transfer occurs. The amendments eliminate the exception for an intra-entity transfer of an asset other than inventory.
Two common examples of assets included in the scope of the amendments are intellectual property and property, plant, and equipment. The
amendments do not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting
for the current and deferred income taxes for an intra-entity transfer of an asset other than inventory. The
amendments align the recognition of income tax consequences for intra-entity transfers of assets other than inventory with International
Financial Reporting Standards. IAS 12, Income Taxes, requires recognition of current and deferred income taxes resulting from
an intra-entity transfer of any asset (including inventory) when the transfer occurs. The
amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including
interim reporting periods within those annual reporting periods. For all other entities, the amendments are effective for annual
reporting periods beginning after December 15, 2018, and interim reporting periods within annual periods beginning after December
15, 2019. Early adoption is permitted for all entities in the first interim period if an entity issues interim financial statements. The
amendments should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings
as of the beginning of the period of adoption. The
FASB has issued Accounting Standards Update No. 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That
Are under Common Control. The amendments affect reporting entities that are required to evaluate whether they should consolidate
a variable interest entity in certain situations involving entities under common control. Specifically, the amendments change
the evaluation of whether a reporting entity is the primary beneficiary of a variable interest entity by changing how a reporting
entity that is a single decision maker of a variable interest entity treats indirect interests in the entity held through related
parties that are under common control with the reporting entity. The
amendments do not change the characteristics of a primary beneficiary in current GAAP. A primary beneficiary of a variable interest
entity has both of the following characteristics: (1) the power to direct the activities of a variable interest entity that most
significantly impact the variable interest entitys economic performance; and (2) the obligation to absorb losses of the
variable interest entity that could potentially be significant to the variable interest entity or the right to receive benefits
from the variable interest entity that could potentially be significant to the variable interest entity. If
a reporting entity satisfies the first characteristic of a primary beneficiary (such that it is the single decision maker of a
variable interest entity), the amendments require that reporting entity, in determining whether it satisfies the second characteristic
of a primary beneficiary, to include all of its direct variable interests in a variable interest entity and, on a proportionate
basis, its indirect variable interests in a variable interest entity held through related parties, including related parties that
are under common control with the reporting entity. That is, under the amendments, a single decision maker is not required to
consider indirect interests held through related parties that are under common control with the single decision maker to be the
equivalent of direct interests in their entirety. Instead, a single decision maker is required to include those interests on a
proportionate basis consistent with indirect interests held through other related parties. If,
after performing that assessment, a reporting entity that is the single decision maker of a variable interest entity concludes
that it does not have the characteristics of a primary beneficiary, the amendments continue to require that reporting entity to
evaluate whether it and one or more of its related parties under common control, as a group, have the characteristics of a primary
beneficiary. If the single decision maker and its related parties that are under common control, as a group, have the characteristics
of a primary beneficiary, then the party within the related party group that is most closely associated with the variable interest
entity is the primary beneficiary. The
amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods
within those fiscal years. For all other entities, the amendments in this Update are effective for fiscal years beginning after
December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted. The
FASB has issued Accounting Standards Update (ASU) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The amendments
apply to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash
flows. The amendments address diversity in practice that exists in the classification and presentation of changes in restricted
cash on the statement of cash flows. The
amendments require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents,
and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as
restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period
and end-of-period total amounts shown on the statement of cash flows. The amendments do not provide a definition of restricted
cash or restricted cash equivalents. The
amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods
within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15,
2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted. The amendments should
be applied using a retrospective transition method to each period presented. The
FASB has issued Accounting Standards Update (ASU) No. 2016-19, Technical Corrections and Improvements. The amendments cover a
wide range of Topics in the Accounting Standards Codification. The amendments generally fall into one of the types of categories
listed below.
· Amendments
related to differences between original guidance (e.g., FASB Statements, EITF Issues, etc.) and the Codification. These amendments
principally carry forward pre-Codification guidance or subsequent amendments into the Codification. Many times, either the
writing style or phrasing of the original guidance did not directly translate into the Codification format and style. As a
result, the meaning of the guidance might have been unintentionally altered. Alternatively, amendments in this category may
relate to guidance that was codified without some text, reference, or phrasing that, upon review, was deemed important to
the guidance. |
