| NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES & REALIZATION OF ASSETS | NOTE
2 SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES & REALIZATION OF ASSETS
Basis
of Presentation
The
accompanying condensed consolidated financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America and the rules of the U.S. Securities
and Exchange Commission, and should be read in conjunction with the audited financial statements and
notes thereto for the year ended December 31, 2015. As permitted under the rules of the SEC for interim
reporting, they do not include all information and footnotes required by accounting principles generally
accepted in the United States of America for complete financial statements. However, except as disclosed
herein, there has been no material change in the information disclosed in the notes to the financial
statements for the year ended December 31, 2014 included in the Company Form 10-K filed with the Securities
and Exchange Commission. In
the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation
of financial position and results of operations for the interim period presented have been included. Operating results
for the interim period are not necessary indicative of the results that may be expected for the respective full year.
Principles
of Consolidation
The
condensed consolidated financial statements for the period ended March 31, 2016 include the financial statements of the Company
and its wholly owned subsidiary Alpha Sunray Sdn. Bhd and its 50.001% equity interest subsidiary NAIM INDAH Mobile Communications
Sdn. Bhd (NIMC). In the prior year the Company disposed its subsidiary companies namely its 63.2% subsidiary
in Clixster Mobile Sdn. Bhd and its 50% subsidiary ATC Marketing Limited (collectively the Disposed Companies).
Accordingly the operating results of the Disposed Companies are disclosed as Discontinued Operations - Net of Tax in the condensed
statement of operation for all period presented. In addition, the assets and liabilities of these Disposed Companies are reported
as Assets of Operations Held for Sale and Liabilities of Operations Held for Sale, as appropriate, in the condensed consolidated
balance sheet.
The
results of subsidiaries acquired or sold during the period are consolidated from their effective dates of acquisition or through
their effective dates of disposition, respectively.
All
significant inter-company transactions and balances have been eliminated on consolidation.
Use
of Estimates
The
preparation of condensed consolidated 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 condensed consolidated financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Net
Loss Per Share
Basic
earnings per share were computed by dividing net loss by the weighted average number of shares of common stock outstanding
during the year. Diluted loss per common share for the period ended March 31, 2016 and 2015 respectively, are not presented
as it would be anti-dilutive.
Fair
Value Measurements and Disclosures
ASC 820 "Fair
Value Measurements and Disclosures" codified SFAS No. 107, "Disclosures about Fair Value of Financial Instruments".
ASC 820 applies to all entities, transactions, and instruments that require or permit fair value measurements, with specific
exceptions and qualifications. The Company is required to disclose estimated fair values of financial instruments. Unless
otherwise indicated, the fair values of all reported assets and liabilities, which represent financial instruments, none of
which are held for trading purposes, approximate their respective carrying values of such amounts.
Cash
and Cash Equivalents
The
Company considers all liquid investments with a maturity of three months or less from the date of purchase that are readily
convertible into cash to be cash equivalents.
Impairment
of long-lived assets
In
accordance with the provisions of ASC Topic 360, Impairment or Disposal of Long-Lived Assets
Revenue
The
Company recognizes its revenue in accordance with the Securities and Exchange Commissions ("SEC") Staff Accounting
Bulletin No. 104, "Revenue Recognition in Financial Statements" ("SAB 104"). Revenue is recognized when
persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability
is reasonably assured. The recognition of revenues involves certain management judgments. The amount and timing of our revenues
could be materially different for any period if management made different judgments or utilized different estimates.
Revenue
is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue.
Prepaid
telecom revenues are collected by its distributors and/or resellers through the sale of our branded prepaid or reload cards,
which are sold in a form of SIM/reload cards to its final customers through its distributors and/or resellers. The sale of
Sim, prepaid or reload cards is recognized as revenue when the products are delivered to its distributors and/or resellers,
based upon their request. Prepaid cards will expire two years after the date of card production if they have never been activated.
The proceeds from the expired cards are recognized as revenue upon expiration of cards.
Cost
of revenue
Cost
of revenue consists primarily of cost of SIM and prepaid/reload cards, telecommunication services and traffic charges which
are directly attributable to the delivery of telecom service upon the activation of prepaid and/or reload cards.
Comprehensive
Income
ASC
Topic 220, Comprehensive Income establishes standards for reporting and display of comprehensive income, its
components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner
sources. Accumulated comprehensive income, as presented in the accompanying statements of stockholders equity consists
of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the
computation of income tax expense or benefit.
Segment
Reporting
ASC
Topic 280, Segment Reporting establishes standards for reporting information about operating segments on a basis
consistent with the Companys internal organization structure as well as information about geographical areas, business
segments and major customers in financial statements. The Company operates in one reportable operating segment in Malaysia
during the period ended March 31, 2016.
Related
Parties
Parties,
which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly,
to control the other party or exercise significant influence over the other party in making financial and operating decisions.
Companies are also considered to be related if they are subject to common control or common significant influence.
Income
Taxes
The
Company accounts for income taxes under ASC 740 Income Taxes. Under the asset and liability method of ASC 740,
deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the
financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a
change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain
deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.
ASC
740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial
statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially
be recognized in the financial statements when it is more likely than not the position will be sustained upon examination
by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit
that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge
of the position and relevant facts.
(a) Current
Tax
Current
tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities.
The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting
date. Current
taxes are recognized in the statement of income except to the extent that the tax relates to items recognized outside
the statement of income, either in other income or directly in equity.
(b) Deferred
Tax
Deferred
tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax
credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be recovered or settled. The
effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes
the enactment date. The Company records a valuation allowance for deferred tax assets if, based upon the available evidence,
it is more likely than not that some or all of the deferred tax assets will not be realized.
Foreign
Currency Translation
The
accounts of the Company's Hong Kong and Malaysia subsidiaries are maintained in Hong Kong dollars (HK) and Malaysia Ringgit
(RM), respectively. Such financial statements are translated into U.S. Dollars (USD) in accordance with ASC 830 Foreign
Currency Translation which codified Statement of Financial Accounts Standards ("SFAS") No. 52, "Foreign
Currency Translation," with the respective currency as the functional currency. According to the Statement, all assets
and liabilities were translated at the exchange rate on the balance sheet date, stockholder's equity are translated at
the historical rates and statement of operations items are translated at the weighted average exchange rate for the year.
The resulting translation adjustments are reported under other comprehensive income in accordance with SFAS No. 130, Reporting
Comprehensive Income. As of March 31, 2016, the comprehensive loss was $1,337.
Recently
Issued Accounting Pronouncements
The
Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact to
its financial position, results of operations or cash flows.
Reclassifications
Certain
comparative amounts have been reclassified to conform to the current periods presentation. |
