| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of Presentation The
Company’s unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles
in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed financial statements reflect all
adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair statement
of the results of operations for the periods shown and are not necessarily indicative of the results to be expected for the full
year ending June 30, 2020. These unaudited condensed financial statements should be read in conjunction with the financial statements
and related notes included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2019. 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 liabilities and expenses during the reporting period. Actual results could differ from those
estimates. The Company currently does not have significant estimates and assumptions. Stock-Based
Compensation The
Company will follow Accounting Standards Codification (“ASC”) 718-10, Stock Compensation, which addresses the
accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on
transactions in which an entity obtains employee services in share-based payment transactions. ASC 718-10 requires measurement
of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of
the award (with limited exceptions). Incremental compensation costs arising from subsequent modifications of awards after the
grant date must be recognized. The Company has not adopted a stock option plan and has not granted any stock options. Use
of Estimates and Assumptions Preparation
of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those estimates. The Company has adopted the provisions
of ASC 260. Earnings
(Loss) per Share Net
loss per common share is computed pursuant to ASC 260-10-45. Basic and diluted net income per common share has been calculated
by dividing the net income for the period by the basic and diluted weighted average number of common shares outstanding. There
were no dilutive shares outstanding as of December 31, 2019 and June 30, 2019. Taxation Current
income taxes are provided on the basis of net profit for financial reporting purposes, adjusted for income and expense items which
are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred
income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts
in the consolidated financial statements, net operating loss carry forwards and credits. Deferred tax assets are reduced by a
valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax
assets will not be realized. Current income taxes are provided in accordance with the laws of the relevant taxing authorities.
Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in which temporary differences
are expected to be reversed or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized
in the statement of comprehensive income in the period of the enactment of the change. The
Company considers positive and negative evidence when determining whether a portion or all of its deferred tax assets will more
likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of current and
cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods, its experience with tax
attributes expiring unused, and its tax planning strategies. The ultimate realization of deferred tax assets is dependent upon
its ability to generate sufficient future taxable income within the carry-forward periods provided for in the tax law and during
the periods in which the temporary differences become deductible. When assessing the realization of deferred tax assets, the Company
has considered possible sources of taxable income including (i) future reversals of existing taxable temporary differences,
(ii) future taxable income exclusive of reversing temporary differences and carry-forwards, (iii) future taxable income
arising from implementing tax planning strategies, and (iv) specific known trend of profits expected to be reflected within
the industry. The
Company recognizes a tax benefit associated with an uncertain tax position when, in its judgment, it is more likely than not that
the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not
recognition threshold, the Company initially and subsequently measures the tax benefit as the largest amount that the Company
judges to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. The Company’s
liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances, such as the progress
of tax audits, case law developments and new or emerging legislation. Such adjustments are recognized entirely in the period in
which they are identified. The Company’s effective tax rate includes the net impact of changes in the liability for unrecognized
tax benefits and subsequent adjustments as considered appropriate by management. The Company classifies interest and penalties
recognized on the liability for unrecognized tax benefits as income tax expense. There
were no current and future income tax provision recorded for the three and six months ended December 31, 2019 and 2018 since the
Company is a shell company and did not generate any revenues in the two fiscal periods. Subsequent
Events The
Company follows the guidance in ASC 855-10-50 for the disclosure of subsequent events. The Company evaluates subsequent events
from the date of the balance sheet through the date when the financial statements are issued. Pursuant to Accounting Standards
Update (“ASU”) 2010-09 of the Financial Accounting Standards Board (“FASB”) ASC, the Company as an SEC
filer considers its financial statements issued when they are widely distributed to users, such as through filing them with the
SEC on the EDGAR system. Recent
Accounting Pronouncements The
Company has reviewed the following recent accounting pronouncements and concluded that they were either not applicable or had
no impact to the Company’s financial statements: In
May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify the principles of recognizing
revenue and create common revenue recognition guidance between U.S. GAAP and International Financial Reporting Standards (“IFRS”).
An entity has the option to apply the provisions of ASU 2014-09 either retrospectively to each prior reporting period presented
or retrospectively with the cumulative effect of initially applying this standard recognized at the date of initial application.
ASU 2014-09 is effective for fiscal years and interim periods within those years beginning after December 15, 2017, and early
adoption is permitted but not earlier than the original effective date of December 15, 2016. The most significant aspect of our
evaluation of Topic 606 relates to ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent
Considerations (Reporting Revenue Gross versus Net). This implementation guidance discusses principal versus agent considerations
and gross versus net revenue reporting, including specific indicators to assist in the determination of whether we control a specified
good or service before it is transferred to the customer. The new standard is not applicable to the Company since the Company
is still a shell and does not generate revenue. In
August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40)—Disclosure
of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 provides guidance regarding management’s
responsibility to (i) evaluate whether there is substantial doubt about an organization’s ability to continue as a
going concern and (ii) provide related footnote disclosures. ASU 2014-15 is effective for fiscal years and interim periods
within those years beginning after December 15, 2016. We adopted ASU 2014-15 as of January 1, 2017. The adoption of
ASU 2014-15 does not have an impact on the Company’s financial statements. In
January 2016, the FASB issued ASU 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial
Assets and Financial Liabilities. The new guidance will impact the accounting for equity investments, financial liabilities under
the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified
the need for a valuation allowance on deferred tax assets resulting from unrealized losses on available-for-sale debt securities.
The accounting for other financial instruments, such as loans, investments in debt securities, and financial liabilities not under
the fair value option is largely unchanged. The standard is effective for public business entities for annual periods (and interim
periods within those annual periods) beginning after December 15, 2017. We adopted this standard as of July 1, 2018.
The adoption of the standard does not have an impact on the Company’s financial statements. In
February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The core principle of Topic 842 is that a lessee should recognize
the assets and liabilities that arise from leases. A lessee should recognize in the balance sheet a liability to make lease payments
(the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases
with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not
to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases
generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years and interim periods within those
years beginning after December 15, 2018. Early
adoption is permitted. The Company does not expect that the adoption of the standard to have an impact on the Company’s
financial statements. In
June 2016, the FASB amended guidance related to impairment of financial instruments as part of ASU 2016-13 Financial Instruments—Credit
Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which will be effective January 1, 2020. The guidance
replaces the incurred loss impairment methodology with an expected credit loss model for which a Group recognizes an allowance
based on the estimate of expected credit loss. The Company does not expect that the adoption of the standard to have an impact
on the Company’s financial statements. In
August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash
Payments. ASU 2016-15 provides guidance for targeted changes with respect to how cash receipts and cash payments are classified
in the statements of cash flows, with the objective of reducing diversity in practice. ASU 2016-15 is effective for interim and
annual periods beginning after December 15, 2017, with early adoption permitted. We adopted this standard as of July 1,
2018. The adoption of the standard does not have an impact on the Company’s financial statements. In
November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) (“ASU 2016-18”). This ASU affects
all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows under
Topic 230. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash
equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This update will become effective
for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15,
2019, and early adoption is permitted in any interim or annual period. The adoption of the guidance does not have impact to the
Company’s statement of cash flows as the Company does not have restricted cash or restricted cash equivalents. In
September 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606),
Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017
EIFT Meeting and Rescission of Prior SEC Staff Announcement and Observer Comments. The transition provisions in ASC Topic 606
require that a public business entity and certain other specified entities adopt ASC Topic 606 for annual reporting periods beginning
after December 15, 2017, including interim reporting periods within that reporting period. All other entities are required to
adopt ASC Topic 606 for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual
reporting periods beginning after December 15, 2019. The amendment is not applicable to the Company since the Company is still
a shell company and does not generate revenue. |
