| Note 2. Summary Of Significant Accounting Policies | BASIS OF PRESENTATION The Company follows accounting principles
generally accepted in the United States of America. In the opinion of management all adjustments, consisting of normal recurring
adjustments, necessary for a fair presentation of financial position and the results of operations for the periods presented have
been reflected herein. REVENUE RECOGNITION The Company will recognize revenue in
accordance with Accounting Standards Codification No. 605, REVENUE RECOGNITION ("ASC-605"), ASC-605 requires that four
basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has
occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria
(3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and
the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other
adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the
product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that
the product has been delivered or no refund will be required. USE OF ESTIMATES The preparation of the 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 financial statements
and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions
related to deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical
experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis
for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily
apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company's
estimates. To the extent there are material differences
between the estimates and the actual results, future results of operations will be affected. CASH AND CASH EQUIVALENTS For purposes of the statement of cash
flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash
equivalents. As of January 31, 2016 the Company had $2,965 in cash or cash equivalents (July 31, 2015 cash of $2,965). FAIR VALUE OF FINANCIAL INSTRUMENTS Pursuant to ASC 820, Fair Value Measurements
and Disclosures and ASC 825, Financial Instruments, an entity is required to maximize the use of observable inputs and minimize
the use of unobservable inputs when measuring fair value. ASC 820 and 825 establishes a fair value hierarchy based on the level
of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within
the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 and
825 prioritizes the inputs into three levels that may be used to measure fair value: Level 1 Applies to assets or liabilities for
which there are quoted prices in active markets for identical assets or liabilities. Level 2 Applies to assets or liabilities for
which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar
assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume
or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can
be derived principally from, or corroborated by, observable market data. Level 3 Applies to assets or liabilities for
which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the
assets or liabilities. The Company's financial instruments
consist principally of cash, accounts payable and amounts due to related parties. Pursuant to ASC 820 and 825, the fair value of
our cash is determined based on "Level 1" inputs, which consist of quoted prices in active markets for identical assets.
We believe that the recorded values of all of our other financial instruments approximate their current fair values because of
their nature and respective maturity dates or durations. The following schedule summarizes the
valuation of financial instruments at fair value on a recurring basis in the balance sheets as of January 31, 2016 and July
31, 2015:
Fair Value Measurement at January 31, 2016 Fair Value Measurement at July 31, 2015
Financial Instrument Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Assets:
Cash $ 2,965 $ - $ - $ 2,965 $ - $ -
Liabilities:
Accounts payable $ - $ 57,097 $ - $ - $ 49,930 $ -
Loan payable to related party $ - $ 5,070 $ - $ - $ 5,070 $ -
Convertible debt $ - $ 61,624 $ - $ - $ 61,624 $ -
Advances received $ - $ 30,000 $ - $ - $ 30,000 $ - INCOME TAXES The Company provides for income taxes
under ASC 740, Accounting for Income Taxes. ASC 740 requires the use of an asset and liability approach in accounting for income
taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases
of assets and liabilities and the tax rates in effect when these differences are expected to reverse. ASC 740 requires the reduction of deferred
tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all
of the deferred tax assets will not be realized. The Company has $3,138,474 of net operating
losses carried forward to offset taxable income in future years which expire commencing in fiscal 2030. The income tax benefit
differs from the amount computed by applying the US federal income tax rate of 34% to net loss before income taxes and had no uncertain
tax positions as at January 31, 2016. Net deferred tax assets consist of the
following components as of:
January 31, July 31,
2016 2015
NOL Carryover $ 1,067,087 $ 1,030,648
Valuation allowance (1,067,087 ) (1,030,648 )
Net deferred tax asset $ 0 $ 0 BASIC AND DILUTED NET LOSS PER COMMON
SHARE The Company computes net loss per share
in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share ("EPS")
on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by
the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential
common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted
method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to
be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect
is anti-dilutive. As at January 31, 2016 and July 31, 2015, the Company had no potentially dilutive shares. STOCK BASED COMPENSATION The Company records stock based compensation
in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of
its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value
and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of
all share-based awards on a graded vesting basis over the vesting period of the award. RECENT ACCOUNTING PRONOUNCEMENTS In June 2014, the Financial Accounting
Standards Board issued Accounting Standards Update No. 2014-10, which eliminated certain financial reporting requirements of companies
previously identified as "Development Stage Entities" (Topic 915). The amendments in this ASU simplify accounting guidance
by removing all incremental financial reporting requirements for development stage entities. The amendments also reduce data maintenance
and, for those entities subject to audit, audit costs by eliminating the requirement for development stage entities to present
inception-to-date information in the statements of income, cash flows, and shareholder equity. Early application of each of the
amendments is permitted for any annual reporting period or interim period for which the entity's financial statements have not
yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer
present or disclose any information required by Topic 915. The Company has adopted this standard. In June 2014, FASB issued Accounting
Standards Update (ASU) No. 2014-12 Compensation Stock Compensation (Topic 718), Accounting for Share-Based Payments
When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. Compensation Stock Compensation In August 2014, FASB issued Accounting
Standards Update (ASU) No. 2014-15 Preparation of Financial Statements Going Concern (Subtopic 205-40), Disclosure of
Uncertainties about an Entity's Ability to Continue as a Going Concern. Presentation of Financial StatementsLiquidation
Basis of Accounting We have reviewed the FASB issued Accounting
Standards Update ("ASU") accounting pronouncements and interpretations thereof that have effectiveness dates during
the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally
accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation's
reported financial position or operations in the near term. The applicability of any standard is subject to the formal review
of our financial management and certain standards are under consideration. |
