| Note 2. Significant Accounting Policies | (a)
Principles of Accounting These
financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the
United States of America (U.S.). (b)
Use of Estimates The
preparation of financial statements in conformity with U.S. 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. Management makes its best estimate of
the ultimate outcome for these items based on historical trends and other information available when the financial statements
are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically
in the period when new information becomes available to management. Actual results could differ from those estimates. (c)
Cash The
Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.
At December 31, 2017 and December 31, 2016, there were no cash equivalents. (d)
Income Taxes The
Company follows the asset and liability method of accounting for income taxes whereby deferred income taxes are recognized for
the deferred income tax consequences attributable to differences between the financial statement carrying values of existing assets
and liabilities and their respective income tax bases (temporary differences). Deferred income tax assets and liabilities are
measured using enacted income tax rates expected to apply to taxable income in the years in which temporary differences are expected
to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is included in income
in the period in which the change occurs. The amount of deferred income tax assets recognized is limited to the amount that is
more likely than not to be realized. (e)
Earnings (Loss) Per Share Basic
earnings (loss) per share is computed by dividing net earnings (loss) for the year attributable to common stockholders by the
weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is computed by dividing
net loss for the year attributable to common stockholders by the weighted average number of common shares outstanding and dilutive
common stock equivalents for the period. At December 31, 2017 there were no stock options outstanding (December 31, 2016, - 2,550,000
outstanding stock options were anti-dilutive). (f)
Stock-Based Compensation The
Company grants stock options to buy common shares of the Company to directors, officers, employees and consultants. An individual
is classified as an employee when the individual is an employee for legal or tax purposes, or provides services similar to those
performed by an employee. The
fair value of stock options is measured on the date of grant, using the Black-Scholes option pricing model and is recognized over
the vesting period. Consideration paid for the shares on the exercise of stock options is credited to share capital. In
situations where equity instruments are issued to non-employees and some or all of the goods or services received by the entity
as consideration cannot be specifically identified, they are measured at the fair value of the share-based payment, using the
Black-Scholes option pricing model. (g)
Foreign Currency Translation The
Company maintains a U.S. dollar bank account at a financial institution in Canada. Foreign currency transactions are translated
into their functional currency, which is the U.S. dollar, in the following manner: At
the transaction date, each asset, liability, revenue and expense is translated into the functional currency by the use of the
exchange rate in effect at that date. At the period end, monetary assets and liabilities are translated into U.S. dollars by using
the exchange rate in effect at that date. Transaction gains and losses that arise from exchange rate fluctuations are included
in the results of operations. (h)
Financial Instruments The
Company classifies financial assets and liabilities as held-for-trading, available-for-sale, held-to-maturity, loans and receivables
or other financial liabilities depending on their nature. Financial assets and financial liabilities are recognized at fair value
on their initial recognition, except for those arising from certain related party transactions which are accounted for at the
transferors carrying amount or exchange amount. Financial
assets and liabilities classified as held-for-trading are measured at fair value, with gains and losses recognized in net income.
Financial assets classified as held-to-maturity, loans and receivables, and financial liabilities other than those classified
as held-for-trading are measured at amortized cost, using the effective interest method of amortization. Financial assets classified
as available-for-sale are measured at fair value, with unrealized gains and losses being recognized as other comprehensive income
until realized, or if an unrealized loss is considered other than temporary, the unrealized loss is recorded in income. The
Company classifies its financial instruments as follows: Cash
is classified as held for trading and is measured at fair value using Level 1 inputs. Accounts payable and accrued liabilities
is classified as other financial liabilities, and have a fair value approximating its carrying value, due to its short-term. |
