SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Aug. 31, 2014 |
SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION |
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The financial statements of the Company have been prepared in accordance with US |
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GAAP and are presented in US dollars. The Company has elected to early adopt the |
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guidance in FASB Topic and no longer provides the accounting disclosures for |
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development stage companies. Accordingly, the figures for the period from |
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inception to the current period are no longer provided and all references to |
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development stage operations have been removed. Other recent accounting |
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pronouncements with future effective dates are not expected to have an impact on |
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the Company's financial statements. |
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USE OF ESTIMATES AND ASSUMPTIONS | USE OF ESTIMATES AND ASSUMPTIONS |
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The preparation of financial statements in conformity with US GAAP required |
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management to make estimated and assumption that affect the report amounts of |
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assets and liabilities and disclosure of contingent assets and liability at the |
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date of the financial statements and the reported amounts of revenues and |
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expenses during the reporting period. The Company regularly evaluates estimates |
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and assumptions. The Company bases its estimates and assumptions on current |
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facts, historical experience and various other factors that it believes to be |
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reasonable under the circumstances, the results of which form the basis from |
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making judgments about the carrying values of assets and liabilities and the |
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accrual of costs and expenses that are not readily apparent from other sources. |
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The actual results experienced by the Company may differ materially and |
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adversely from the Company's estimates. To the extent there are material |
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differences between the estimates and the actual results, future results of |
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operations will be affected. |
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FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS |
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The fair value of the Company's financial instruments, consisting of bank |
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indebtedness, accounts payable, convertible debentures and notes payable are |
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estimated to approximate to their carrying value. It is management's opinion |
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that the Company is not exposed to significant interest, currency or credit |
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risks arising from these financial instruments. |
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FOREIGN CURRENCY TRANSLATION | FOREIGN CURRENCY TRANSLATION |
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Foreign denominated monetary assets and liabilities are translated into their |
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United States dollar equivalents using foreign exchange rates which prevailed at |
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the balance sheet date. Expenses are translated at average rates of exchange |
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during the period. Gains or losses resulting from foreign currency transactions |
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are included in results of operations. |
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INCOME TAXES POLICY | INCOME TAXES |
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Deferred income taxes are provided for tax effects of temporary differences |
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between the tax basis of asset and liabilities and their reported amounts in the |
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financial statements. The Company uses the liability method to account for |
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income taxes, which requires deferred taxes to be recorded at the statutory rate |
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expected to being in effect when the taxes are paid. Valuation allowances are |
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provided for a deferred tax asset when it is probable that such asset will not |
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be realized. |
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Management evaluated tax positions taken or expected to be taken in a tax |
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return. The evaluation of a tax position included a determination of whether a |
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tax position should be recognized in the financial statements and such a |
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position should only be recognized if the Company determines that it is more |
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likely than not that the tax position will be sustained upon examination by the |
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tax authorities, based upon the technical merits of the position. For those tax |
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positions that should be recognized, the measurement of a tax position is |
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determined as being the largest amount of benefit that is greater than fifty |
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percent likely of being realized upon ultimate settlement. |
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INVESTMENTS | INVESTMENTS |
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Long term investments in which the Company has voting interests of 20% to 50%, |
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or where the Company otherwise has the ability to exercise significant |
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influence, are accounted for using the equity method. Under this method, the |
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Company's share of the investees' earnings and losses are included in operations |
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and its investments therein are adjusted by a like amount. Dividends are |
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credited to the investment accounts. |
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LOSS PER SHARE | LOSS PER SHARE |
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Basic loss per share is computed by dividing net loss available to common |
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shareholders by the weighted average number of outstanding common shares during |
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the period. Diluted loss per share gives effect to all dilutive potential common |
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shares outstanding during the period. Dilutive loss per share excludes all |
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potential common shares if there effect is anti-dilutive. Because the Company |
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does not have any potentially dilutive securities, diluted loss per share is |
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equal to basic loss per share. |
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RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS |
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Recent pronouncements with future effective dates are either not applicable or |
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are not expected to be significant to the financial statement of the Company. |
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