| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 4. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES Basis of presentation and consolidation The accompanying consolidated financial statements
of the Group have been prepared in accordance with generally accepted accounting principles in the United States of America. On June 29, 2010, the Financial Accounting
Standards Board (FASB) established the FASB Accounting Standards Codification (Codification) as the single source of authoritative
US generally accepted accounting principles (GAAP) for all non-governmental entities Rules and interpretive releases of the Securities
and Exchange Commission (SEC) and also sources of authoritative US GAAP for SEC registrants. The Codification does not change US
GAAP but takes previously issued FASB standards and other U.S. GAAP authoritative pronouncements, changes the way the standards
are referred to, and includes them in specific topic arrears. The adoption of the Codification did not have any impact on the Groups
financial statements. The consolidated financial statements are presented
in US Dollars and include the accounts of the Group and its subsidiaries. All significant inter-company accounts and transactions
have been eliminated in consolidation. The following table depicts the identity of
the subsidiaries:
Name of Subsidiary Place of Incorporation Attributable Equity Interest % Registered Capital
Green Standard Technologies Enterprise, Inc. (1) Nevada 100
USD 100
Syndicore Asia Limited Hong Kong 100
HKD 1
Z-Line International E-Commerce Limited Hong Kong 55
HKD 8,000,000
Note: (1) Wholly owned subsidiary of ZZLL (2) Wholly owned subsidiary of ZZLL (3) 55% owned subsidiary of Syndicore Asia
Limited The results of subsidiaries acquired or disposed
of during the years are included in the consolidated income statement from the effective date of acquisition or up to the effective
date of disposal. Use of estimates In preparing financial statements in conformity
with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the
financial statements, as well as the reported amounts of revenues and expenses during the reporting year. These accounts
and estimates include, but are not limited to, the valuation of accounts receivable, deferred income taxes and the estimation on
useful lives of plant and equipment. Actual results could differ from those estimates. Concentrations of credit risk Financial instruments that potentially subject
the Group to significant concentrations of credit risk consist principally of accounts receivable. In respect of accounts
receivable, the Group extends credit based on an evaluation of the customers financial condition, generally without requiring collateral
or other security. In order to minimize the credit risk, the management of the Group has delegated a team responsibility
for determination of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to
recover overdue debts. Further, the Group reviews the recoverable amount of each individual trade debt at each balance sheet
date to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the directors of the Group
consider that the Groups credit risk is significantly reduced. Cash and cash equivalents Cash and cash equivalents include all cash,
deposits in banks and other highly liquid investments with initial maturities of three months or less. Accounts receivable Accounts receivable are stated at original
amount less allowance made for doubtful receivables, if any, based on a review of all outstanding amounts at the year end. An
allowance is also made when there is objective evidence that the Group will not be able to collect all amounts due according to
original terms of receivables. Bad debts are written off when identified. The Group extends unsecured credit to customers
in the normal course of business and believes all accounts receivable in excess of the allowances for doubtful receivables to be
fully collectible. The Group does not accrue interest on trade accounts receivable. The Group has a credit policy in place
and the exposure to credit risk is monitored on an ongoing basis credit evaluations are preferred on all customers requiring credit
over a certain amount. The Group had experienced the bad debts of $nil and $nil during the year ended December 31, 2016 and
2015 respectively. Plant and equipment Plant and equipment are stated at cost less
accumulated depreciation. Cost represents the purchase price of the asset and other costs incurred to bring the asset into
its existing use. Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major
additions to physical properties are capitalized. Depreciation of plant and equipment is provided
using the straight-line method over their estimated useful lives at the following annual rates:
Furniture and fixtures 20% - 50%
Office equipment 20% Property and equipment are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability
of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash
flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment
charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be
disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs
to sell, and are no longer depreciated. Revenue recognition The Group recognizes revenue when it is earned
and realizable based on the following criteria: persuasive evidence that an arrangement exists, services have been rendered, the
price is fixed or determinable and collectability is reasonably assured. The Group also evaluates the presentation of
revenue on a gross versus a net basis through application of Emerging Issues Task Force No. (EITF) 99-19, Reporting Revenue
Gross as a Principal versus Net as an Agent Advertising expenses Advertising expenses are charged to expense
as incurred. The advertising expenses incurred for the year ended December 31, 2016 and 2015 were $Nil and $293 respectively. Income Taxes Income taxes are accounted for under the asset
and liability method. 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 bases 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 FASB issued Accounting Standard Codification
Topic 740 (ASC 740) Income Taxes. ASC 740 clarifies the accounting for uncertainty in tax positions. This requires that an entity
recognized in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being
sustained upon examination, based on the technical merits of the position. The adoption of ASC 740 did not have any impact on the
Groups results of operations or financial condition for the year ended 31 December, 2016. As of the date of the adoption
of ASC 740, the Group has no material unrecognized tax benefit which would favorably affect the effective income tax rate in future
periods. The Group has elected to classify interest and penalties related to unrecognized tax benefits, if and when required,
as part of income tax expense in the consolidated statements of operations. Comprehensive income Other comprehensive income refers to revenues,
expenses, gains and losses that under U.S. GAAP are included in comprehensive income but are excluded from net income as these
amounts are recorded as a component of stockholders equity. The Groups other comprehensive income represented foreign currency
translation adjustments. Foreign currency translation The functional currency of the Group is Hong
Kong dollars (HK$). The Group maintains its financial statements in the functional currency. Monetary assets and liabilities
denominated in currencies other than the functional currency are translated into the functional currency at rates of exchange prevailing
at the balance sheet dates. Transactions denominated in currencies other than the functional currency are translated into
the functional currency at the exchanges rates prevailing at the dates of the transaction. In 2015, the exchange rate being used
to translate amount in HK$ is fixed at 7.8 to 1 for the purpose of preparing the consolidated financial statements which is derived
from October 17, 1983 monetary policy from Hong Kong Monetary Authority where the Hong Kong dollar was pegged at a rate of 7.8
HK$ = 1 US$, through the currency board system with a limited floating range from 7.85 to 7.75. Exchange gains or losses
arising from foreign currency transactions are included in the determination of net income for the respective periods. For financial reporting purposes, the financial
statements of the Group which are prepared using the functional currency have been translated into United States dollars. Assets
and liabilities are translated at the exchange rates at the balance sheet dates and revenue and expenses are translated at the
average exchange rates and stockholders equity is translated at historical exchange rates. Any translation adjustments resulting
are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income, a component
of stockholders equity.
Year ended Year ended
Dec 31, 2016 Dec 31, 2015
Year end HK$ : US$ exchange rate 7.8 7.8
Average yearly HK$ : US$ exchange rate 7.8 7.8 Fair value of financial instruments The carrying values of the Groups financial
instruments, including cash and cash equivalents, trade and other receivables, deposits, trade and other payables approximate their
fair values due to the short-term maturity of such instruments. The carrying amounts of borrowings approximate their fair values
because the applicable interest rates approximate current market rates. Stock-based Compensation Share-based compensation including stock options
and common stock awards issued to employees and directors for services and are accounted for in accordance with FASB ASC 718 "Compensation
- Stock Compensation" and share-based compensation including warrants and common stock awards issued to consultants and nonemployees
are accounted for in accordance with FASB ASC 505-50 "Equity-Based Payment to Non-employees. All grant of common stock
awards and stock options/warrants to employees and directors are recognized in the financial statements based on their grant date
fair values. Awards to consultants and nonemployees are recognized based upon their fair value as of the earlier of a commitment
date or completion of services. The grant date(s) of all awards are determined under the guidance of ASC 718-10-25-5. The Company
estimates fair value of common stock awards based the quoted price of the Company's common stock on the grant date. The fair value
of stock options and warrants is determined using the appropriate option pricing model depends on the applicable of situation. On April 1, 2013, the Board of Director resolved
to pay an officer for a monthly service fee of US$4,250. The fee was raised to US$10,000 per month as at October 1, 2013. The Company
has an option to pay the officer by common stock in lieu of cash at a rate of $0.005 per share. During 2013, the Company
issued 1,700,000 shares on June 3, 2013; 850,000 shares on July 2, 2013; 850,000 shares on August 5, 2013 and 850,000 shares on
September 6, 2013 with an aggregate of 4,250,000 shares in lieu of $21,250 compensation to the officer. The amounts recorded were
about $85,000 at fair price per ASC 718. Basic and diluted earnings per share The Group computes earnings per share (EPS)
in accordance with FASB Accounting Standard Codification Topic 260 (ASC 260) Earnings Per Share, and SEC Staff Accounting Bulletin
No. 98 (SAB 98). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is
measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the
period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g.,
convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance
date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease
loss per share) are excluded from the calculation of diluted EPS. The calculation of diluted weighted average
common shares outstanding for the year ended December 31, 2016 is based on the estimate fair value of the Groups common stock during
such periods applied to options using the treasury stock method to determine if they are dilutive. Effective on October 19, 2011, each of ten
(10) shares of the Companys Common Stock, par value $.001 per share, issued and outstanding immediately prior to the Effective
Time (the Old Common Stock) shall automatically and without any action on the part of the holder thereof, be reclassified as and
changed, pursuant, into one (1) share of the Companys outstanding Common Stock (the New Common Stock). The following tables are a reconciliation of
the weighted average shares used in the computation of basic and diluted earnings per share for the periods presented:
Year Ended Dec. 31, 2016
Year Ended Dec. 31, 2015
$ $
Numerator for basic and diluted earnings per share:
Net (loss)/income (235,737) (247,239)
Denominator:
Basic weighted average shares 31,537,157 18,725,003
Effect of dilutive securities - -
Diluted weighted average shares 31,537,157 18,725,003
Basic earnings per share: (1.32 cents) (1.32 cents)
Diluted earnings per share: (1.32cents) (1.32 cents) Related parties transactions A related party is generally defined as (i)
any person that holds 10% or more of the Groups securities and their immediate families, (ii) the Groups management, (iii) someone
that directly or indirectly controls, is controlled by or is under common control with the Group, or (iv) anyone who can significantly
influence the financial and operating decisions of the Group. A transaction is considered to be a related party transaction when
there is a transfer of resources or obligations between related parties. Commitments and contingencies Liabilities for loss contingencies arising
from claims, assessments, litigation, fines and other sources are recorded when it is probable that a liability has been incurred
and the amount of the assessment can be reasonably estimated. Recently issued accounting pronouncements The FASB has issued ASU No. 2015-06 about Topic
260, Earnings Per Share, which contains guidance that addresses master limited partnerships that originated from Emerging Issues
Task Force (EITF) Issue No. 07-4. This amendment in this Update specify that for purposes of calculating historical earnings per
unit under the two-class method, the earnings (losses) of a transferred business before the date of a dropdown transaction should
be allocated entirely to the general partner. In that circumstance, the previously reported earnings per unit of the limited partners
(which is typically the earnings per unit measure presented in the financial statements) would not change as a result of the dropdown
transaction. Qualitative disclosures about how the rights to the earnings (losses) differ before and after the dropdown transaction
occurs for purposes of computing earnings per unit under the two-class method also are required. The amendments in this Update
are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Earlier application
is permitted. The FASB has issued ASU No. 2015-07 about Topic
820, Fair Value Measurement, which permits a reporting entity, as a practical expedient, to measure the fair value of certain investments
using the net asset value per share of the investment. The amendments in this Update remove the requirement to categorize within
the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient.
The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at
fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which
the entity has elected to measure the fair value using that practical expedient. The amendments in this Update apply to reporting
entities that elect to measure the fair value of an investment within the related scope by using the net asset value per share
(or its equivalent) practical expedient. The FASB has issued Accounting Standards Update
2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per
Share (or Its Equivalent). The amendments apply to reporting entities that elect to measure the fair value of an investment using
the net asset value per share (or its equivalent) practical expedient. Topic 820, Fair Value Measurement, permits
a reporting entity, as a practical expedient, to measure the fair value of certain investments using the net asset value per share
of the investment. Currently, investments valued using the practical expedient are categorized within the fair value hierarchy
on the basis of whether the investment is redeemable with the investee at net asset value on the measurement date, never redeemable
with the investee at net asset value, or redeemable with the investee at net asset value at a future date. For investments that
are redeemable with the investee at a future date, a reporting entity must consider the length of time until those investments
become redeemable to determine the classification within the fair value hierarchy. The amendments are effective for public business
entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities,
the amendments are effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years.
A reporting entity should apply the amendments retrospectively to all periods presented. The retrospective approach requires that
an investment for which fair value is measured using the net asset value per share practical expedient be removed from the fair
value hierarchy in all periods presented in an entitys financial statements. Earlier application is permitted. The FASB has issued No. 2016-07 Topic 323,
InvestmentsEquity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting, which aims to identify,
evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while
maintaining or improving the usefulness of the information provided to users of financial statements. The amendments in this Update
affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase
in the level of ownership interest or degree of influence. The amendments in this Update are effective for all entities for fiscal
years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively
upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of
the equity method. Earlier application is permitted. Recently issued accounting pronouncements
(continued) The FASB has issued No. 2016-08 Topic 606,
Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which requires
the entity to determine whether the nature of its promise is to provide good or service to the customer (that is, the entity is
a principal) or to arrange for the good or service to be provided to the customer by the other party (that is, the entity is an
agent). This determination is based upon whether the entity controls the good or the service before it is transferred to the customer.
The amendments in this Update affect entities with transactions included within the scope of Topic 606. The core principle of the
guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers
(Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the
same as the effective date and transition requirements of Update 2014-09. Accounting Standards Update No. 2015-14, Revenue from
Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The FASB has issued No. 2016-09 Topic 718,
CompensationStock Compensation: Improvements to Employee Share-Based Payment Accounting, which aims to identify, evaluate, and
improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining
or improving the usefulness of the information provided to users of financial statements. The amendments in this Update affect
all entities that issue share-based payment awards to their employees. The areas for simplification in this Update involve several
aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards
as either equity or liabilities, and classification on the statement of cash flows. The amendments eliminate the guidance in Topic
718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. For
public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and
interim periods within those annual periods. For all other entities, the amendments are effective for annual periods beginning
after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted
for any entity in any interim or annual period. The FASB has issued No. 2016-10 Topic 606,
Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing. The amendments in this Update do not
change the core principle of the guidance in Topic 606. Rather, the amendments in this Update clarify the following two aspects
of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles
for those areas. The amendments in this Update clarify that contractual provisions that, explicitly or implicitly, require an entity
to transfer control of additional goods or services to a customer (for example, by requiring the entity to transfer control of
additional rights to use or rights to access intellectual property that the customer does not already control) should be distinguished
from contractual provisions that, explicitly or implicitly, define the attributes of a single promised license (for example, restrictions
of time, geographical region, or use). The amendments in this Update affect the guidance in Accounting Standards Update 2014-09,
Revenue from Contracts with Customers (Topic 606), which is not yet effective. The Company has considered all new accounting
pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations,
financial condition, or cash flows, based on current information. |
