| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES The financial statements were
prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP). Basis of Presentation The Company maintains its
accounting records on an accrual basis in accordance with generally accepted accounting principles in the United States of America ("U.S.
GAAP"). These financial statements are presented in US dollars. Use of estimates in the preparation of consolidated
financial statements The preparation of financial
statements in conformity with US GAAP 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 dates of the financial statements, and the reported amounts
of expenses during the reporting periods. Actual results could differ from those estimates. As applicable to these financial statements,
the most significant estimates and assumptions relate to the going concern assumptions and stock based compensation. Cash and cash equivalents, and Restricted cash Cash equivalents are short-term
highly liquid investments which include short term bank deposits (up to three months from date of deposit), that are not restricted as
to withdrawals or use that are readily convertible to cash with maturities of three months or less as of the date acquired. The Company
maintains its cash balances at credit-worthy financial institutions that are insured by the Federal Deposit Insurance Corporation ("FDIC")
up to $250,000. Earnings per 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 calculated by dividing the profit or loss attributable
to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted EPS is determined
by adjusting the profit or loss attributable to common shareholders and the weighted average number of common shares outstanding for the
effects of all potential dilutive common shares, which comprise options granted to employees. As November 30, 2019, the Company had no
potentially dilutive shares. Income Taxes Income taxes are accounted
for in accordance with ASC Topic 740, "Income Taxes." Under the asset and liability method, deferred tax assets and liabilities
are recognized for the future consequences of differences between the financial statement carrying amounts of existing assets and liabilities
and their respective tax bases (temporary differences). Deferred tax assets and liabilities are measured using tax rates expected to apply
to taxable income in the years in which those temporary differences are recovered or settled. Valuation allowances for deferred tax assets
are established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Stock based compensation The Company accounts for equity
instruments issued to employees in accordance with ASC 718, Compensation - Stock Compensation. ASC 718 requires all share-based compensation
payments to be recognized in the financial statements based on the fair value using an option pricing model. ASC 718 requires forfeitures
to be estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from initial estimates. Equity instruments granted
to non-employees are accounted for in accordance with ASC 505, Equity. The final measurement date for the fair value of equity instruments
with performance criteria is the date that each performance commitment for such equity instrument is satisfied or there is a significant
disincentive for non-performance. Fair Value of Financial Instruments The Company measures assets
and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which
represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly
transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing
an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value
on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical
levels of inputs to measure fair value:
- Level 1: Quoted prices in active markets for identical instruments.
- Level 2: Other significant observable inputs (including quoted
prices in active markets for similar instruments);
- Level 3: Significant unobservable inputs (including assumptions
in determining the fair value of certain investments). Recent Accounting Pronouncements In
June 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No.
2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments". In November
2018, FASB issued ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments-Credit Losses", which amends
the scope and transition requirements of ASU 2016-13. Topic 326 requires a financial asset (or a group of financial assets) measured at
amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on
relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that
affect the collectability of the reported amount. Topic 326 will originally become effective for the Company beginning January 1, 2020,
with early adoption permitted, on a modified retrospective approach. As a smaller reporting company, the effective date for the Company
has been delayed until fiscal years beginning after December 15, 2022, in accordance with ASU 2019-10, although early adoption is still
permitted. This standard is not expected to have a material impact to the Company's consolidated financial statements after evaluation. In December 2019, the FASB
issued ASU 2019-12, Income Taxes (Topic 740): "Simplifying the Accounting for Income Taxes." The amendments in this ASU simplify
the accounting for income taxes, eliminates certain exceptions to the general principles in Topic 740 and clarifies certain aspects of
the current guidance to improve consistent application among reporting entities. ASU 2019-12 is effective for fiscal years beginning after
December 15, 2021 and interim periods within annual periods beginning after December 15, 2022, though early adoption is permitted, including
adoption in any interim period for which financial statements have not yet been issued. This standard is not expected to have a material
impact to the Company's consolidated financial statements after evaluation. The Company has implemented
all new accounting pronouncements that are in effect and that could impact its consolidated financial statements and does not believe
that there are any other new accounting pronouncements that have been issued, but are not yet effective, that might have a material impact
on the consolidated financial statements of the Company. |
