Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2014 |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Note 3 – Summary of Significant Accounting Policies |
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Basis of Presentation |
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Management acknowledges its responsibility for the preparation of the accompanying financial statements which reflect all adjustments, consisting of normal recurring adjustments, considered necessary in its opinion for a fair statement of its financial position and the results of its operations for the years presented. The accompanying financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All necessary adjustments have been made to present the financial statements in accordance with U.S. GAAP. The Company’s functional currency is United States Dollars (“USD”). The financial statements include all adjustments that, in the opinion of management, are necessary to make the financial statements not misleading. |
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Use of Estimates – |
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The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results may differ from these estimates and assumptions. |
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Income Taxes |
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The Company accounts for income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, 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. 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. Under ASC 740-10-25, 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. |
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| | For the Year Ended September 30, |
| | 2013 | | 2012 |
Expected income tax recovery (expense) at the statutory rate of 34% | $ | -7,300 | $ | -12,000 |
Tax effect of expenses that are not deductible for income tax purposes (net of other amounts deductible for tax purposes) | | — | | — |
Change in valuation allowance | | 7,300 | | 12,000 |
Provision for income taxes | $ | — | $ | — |
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The components of deferred income taxes are as follow: |
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| | For the Year Ended September 30, |
| | 2013 | | 2012 |
Deferred income tax asset: | | | | |
Net operating loss carry forwards | $ | 16,500 | $ | 9,200 |
Valuation allowance | | -16,500 | | -9,200 |
Deferred income taxes | $ | — | $ | — |
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As of September 30, 2013, the Company has a net operating loss carryforward for tax purposes of approximately $55,000 available to offset future taxable income through 2032. The principal difference between the NOL for book purposes and tax purposes results from accrued officer salaries contributed to capital and common shares issued for services. The increases in the valuation allowance at September 30, 2013 and 2012 were $7,300 and $2,400, respectively. The utilization of the Company’s NOL may be limited because of a possible change in ownership as defined under Section 382 of Internal Revenue Code. Such change in ownership, for purposes of utilization of the Company’s NOL’s under Section 382, may have occurred with the change of company ownership that occurred on February 22, 2013. |
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The Company’s income tax returns since inception are subject to audit by regulatory authorities. |
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Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. |
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Management is not aware of any such changes that would have a material effect on the Company’s results of operations, cash flows or financial position. |
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The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations. |
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FASB ASC Topic 740, Income Taxes provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. ASC Topic 740 also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. |
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We recognize tax liabilities in accordance with ASC Topic 740 and we adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined. |
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Basic and Diluted Loss per Share |
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The Company reports loss per share in accordance with FASB ASC 260 “Earnings per share”. The Company’s basic earnings per share are computed using the weighted average number of shares outstanding for the periods presented. Diluted earnings per share are computed based on the assumption that any dilutive options or warrants were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, the Company’s outstanding stock warrants are assumed to be exercised, and funds thus obtained were assumed to be used to purchase common stock at the average market price during the period. There were no dilutive instruments outstanding during the years ended September 30, 2013 and 2012. However, if present, a separate computation of diluted loss per share would not have been presented, as these common stock equivalents would have been anti-dilutive due to the Company's net loss. |
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Fair Value of Financial Instruments |
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Effective January 1, 2008, the Company adopted ASC 820, Fair Value Measurements and Disclosure (“ASC 820”) for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value and expands disclosure about such fair value measurements. The adoption of ASC 820 did not have an impact on the Company’s financial position or operating results, but did expand certain disclosures. |
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ASC 820 defines fair value as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: |
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Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities |
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data |
Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. |
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The Company did not identify any assets and liabilities that are required to be presented on the condensed balance sheets at fair value in accordance with the relevant accounting standards. |
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The carrying values of accounts payables and debts approximate their fair values due to the short maturities of these instruments. |
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Revenue Recognition |
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In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company: |
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Revenue is recognized at the time the product is delivered or the service is performed. Provision for sales returns will be estimated based on the Company’s historical return experience. Deferred revenue is recorded for amounts received in advance of the time at which delivery has occurred or services are performed and included in revenue at the date of delivery or completion of the related services. |
Stock-Based Compensation |
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The Company accounts for stock based compensation in accordance with ASC 718 Stock Compensation. This Statement requires that the cost resulting from all share-based transactions be recorded in the financial statements. The Statement establishes fair value as the measurement objective in accounting for share-based payment arrangements and requires all entities to apply a fair-value-based measurement in accounting for share-based payment transactions with employees. The Statement also establishes fair value as the measurement objective for transactions in which an entity acquires goods or services from non-employees in share-based payment transactions. |
Business Segments |
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The Company operates in one segment and therefore segment information is not presented. |
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Recent Pronouncements |
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A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, the Company has not determined whether implementation of such proposed standards would be material to our financial statements. |