Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Sep. 19, 2014 | Dec. 31, 2013 | |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Trading Symbol | 'mjpi | ' | ' |
Entity Registrant Name | 'MJP INTERNATIONAL LTD. | ' | ' |
Entity Central Index Key | '0001575420 | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 16,108,500 | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well Known Seasoned Issuer | 'No | ' | ' |
Entity Public Float | ' | ' | $0 |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Current | ' | ' |
Cash and cash equivalents | $967 | $57,677 |
Inventory | 0 | 8,369 |
Total Assets | 967 | 66,046 |
Current | ' | ' |
Trades and other payables | 17,847 | 23,791 |
Due to related parties | 66,035 | 33,608 |
Total Liabilities | 83,882 | 57,399 |
STOCKHOLDERS' EQUITY (DEFICIENCY) | ' | ' |
Common stock Authorized 100,000,000 common stock, voting, par value $0.0001 each and 90,000,000 preferred stock, non-voting par value $0.0001 Issued 16,108,500 (June 30, 2013 - 16,108,500) common stock | 1,611 | 1,611 |
Additional paid in capital | 112,195 | 112,195 |
Deficit accumulated during the development stage | -193,568 | -102,363 |
Accumulated other comprehensive loss | -3,153 | -2,796 |
Total Stockholders' Equity (Deficiency) | -82,915 | 8,647 |
Total Liabilities and Stockholders' Equity | $967 | $66,046 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Par Value Per Share | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 90,000,000 | 90,000,000 |
Preferred Stock, Par Value Per Share | $0.00 | $0.00 |
Common Stock, Shares, Issued | 16,108,500 | 16,108,500 |
CONSOLIDATED_STATEMENT_OF_OPER
CONSOLIDATED STATEMENT OF OPERATIONS (USD $) | 12 Months Ended | 47 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Revenue | $8,249 | $28,843 | $94,849 |
Cost of goods sold | -10,096 | -26,048 | -72,882 |
Gross profit | -1,847 | 2,795 | 21,967 |
Expenses | ' | ' | ' |
General & administration | 60,425 | 30,897 | 92,040 |
Professional fees | 17,330 | 47,067 | 66,591 |
Wages & salaries | 11,603 | 12,364 | 55,569 |
Total Expenses | -89,358 | -90,328 | -214,200 |
Net loss before income tax | -91,205 | -87,533 | -192,233 |
Income tax expense | 0 | 0 | 1,335 |
Net loss | -91,205 | -87,533 | -193,568 |
Other comprehensive income | ' | ' | ' |
Foreign currency adjustment | -357 | -3,048 | -4,153 |
Comprehensive loss | ($91,562) | ($90,581) | ($197,721) |
Basic and diluted loss per stock | ($0.01) | ($0.01) | ' |
Weighted average number of shares outstanding | 16,108,500 | 14,165,293 | ' |
CONSOLIDATED_STATEMENT_OF_STOC
CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY (USD $) | Common Stock [Member] | Additional Paid in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Deficit [Member] | Total |
Beginning Balance at Jul. 18, 2010 | $1,200 | ($1,096) | ' | ' | $104 |
Beginning Balance (Shares) at Jul. 18, 2010 | 12,000,000 | ' | ' | ' | ' |
Net income for the period | ' | ' | ' | -17,693 | -17,693 |
Other comprehensive income for the period | ' | ' | -684 | ' | -684 |
Ending Balance at Jun. 30, 2011 | 1,200 | -1,096 | -684 | -17,693 | -18,273 |
Ending Balance (Shares) at Jun. 30, 2011 | 12,000,000 | ' | ' | ' | ' |
Net income for the period | ' | ' | ' | 2,863 | 2,863 |
Other comprehensive income for the period | ' | ' | 936 | ' | 936 |
Ending Balance at Jun. 30, 2012 | 1,200 | -1,096 | 252 | -14,830 | -14,474 |
Beginning Balance (Shares) at Jun. 30, 2012 | 12,000,000 | ' | ' | ' | ' |
Recapitalization | 15 | -6,992 | ' | ' | -6,977 |
Recapitalization (Shares) | 150,000 | ' | ' | ' | ' |
Stock issued for private placement | 396 | 120,283 | ' | ' | 120,679 |
Stock issued for private placement (Shares) | 3,958,500 | ' | ' | ' | ' |
Net income for the period | ' | ' | ' | -87,533 | -87,533 |
Other comprehensive income for the period | ' | ' | -3,048 | ' | -3,048 |
Ending Balance at Jun. 30, 2013 | 1,611 | 112,195 | -2,796 | -102,363 | 8,647 |
Ending Balance (Shares) at Jun. 30, 2013 | 16,108,500 | ' | ' | ' | ' |
Net income for the period | ' | ' | ' | -91,205 | -91,205 |
Other comprehensive income for the period | ' | ' | -357 | ' | -357 |
Ending Balance at Jun. 30, 2014 | $1,611 | $112,195 | ($3,153) | ($193,568) | ($82,915) |
Ending Balance (Shares) at Jun. 30, 2014 | 16,108,500 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 12 Months Ended | 47 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Operating activities | ' | ' | ' |
Net loss for the period | ($91,205) | ($87,533) | ($193,568) |
Changes in non-cash working capital: | ' | ' | ' |
Trades receivable | 0 | 338 | 0 |
Inventory | 8,369 | 475 | 0 |
Trade and other payables | -5,944 | 6,620 | 18,465 |
Due to related parties | 32,427 | 15,937 | 66,035 |
Net cash used in operating activities | -56,353 | -64,163 | -109,068 |
Financing activities | ' | ' | ' |
Cash from acquisition | 0 | 229 | 382 |
Common stock issued | 0 | 120,679 | 113,806 |
Net cash provided by financing activities | 0 | 120,908 | 114,188 |
Effect of exchange rate changes on cash | -357 | 318 | -4,153 |
Net cash increase (decrease) for period | -56,710 | 57,063 | 967 |
Cash and cash equivalents, beginning of the period | 57,677 | 614 | 0 |
Cash and cash equivalents, end of the period | $967 | $57,677 | $967 |
NATURE_AND_CONTINUANCE_OF_OPER
NATURE AND CONTINUANCE OF OPERATIONS | 12 Months Ended |
Jun. 30, 2014 | |
NATURE AND CONTINUANCE OF OPERATIONS [Text Block] | ' |
NOTE 1 – NATURE AND CONTINUANCE OF OPERATIONS | |
MJP International Ltd. (“MJP” or the “Corporation”) was incorporated in the state of Nevada, United States on October 24, 2012. On December 10, 2012, the Corporation acquired MJP Lighting Solutions Ltd. (“MJP BVI”) and MJP BVI’s wholly owned subsidiary, MJP Holdings Ltd. (“MJP Alberta”), by issuing 12,000,000 common stock in exchange for 100 percent of the outstanding common stock of MJP BVI (the “Transaction”). Although the Corporation was the legal acquirer, the transaction was accounted for as a recapitalization of MJP BVI in the form of a reverse merger, whereby MJP BVI becomes the accounting acquirer and was deemed to have retroactively adopted the capital structure of the Corporation. Accordingly, the accompanying consolidated financial statements reflect the historical consolidated financial statements of MJP BVI for all periods presented, and do not include the historical financial statements of the Corporation. All costs associated with the reverse merger transaction were expensed as incurred. | |
MJP BVI, a British Virgin Islands company, with its main office located in Hong Kong, was incorporated in October 31, 2012. MJP Alberta was incorporated on July 19, 2010 under the laws of the province of Alberta, Canada. MJP BVI operating through MJP Alberta specializes in the sale and distribution of LED lighting and technology solutions and is focused on the North American market. MJP Alberta has set up agency in Guangzhou, China in search of high quality products offered by reputable manufacturers to be introduced to Canada. | |
These consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Corporation and its subsidiaries will be able to meet its obligations and continue its operations for next fiscal year. Realization values may be substantially different from carrying values as shown and these consolidated financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Corporation be unable to continue as a going concern. At June 30, 2014, the Corporation had not yet achieved profitable operations and has accumulated losses of $193,568 since its inception. The Corporation expects to incur further losses in the development of its business, all of which casts substantial doubt about the Corporation’s ability to continue as a going concern. The Corporation’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management anticipates that additional funding will be in the form of equity financing from the sale of common stock. Management may also seek to obtain short-term loans from the directors of the Corporation. There are no current arrangements in place for equity funding or short-term loans. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Jun. 30, 2014 | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block] | ' | |
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Basis of Presentation | ||
The Corporation’s consolidated financial statements included herein are prepared under the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. These consolidated financial statements include the financial activities of its wholly owned subsidiaries, MJP Lighting Solutions Ltd. and MJP Holdings Ltd., and 100 percent of its assets, liabilities and net income or loss. All inter-company balances and transactions have been eliminated. | ||
Cash and Cash Equivalents | ||
For purposes of the consolidated statement of cash flows, management considers liquid investments with an original maturity of three months or less to be cash equivalents. As at June 30, 2014, all cash amounts deposited in accounts were federally insured. | ||
Inventory | ||
Inventories recorded in the consolidated financial statements are stated at the lower of cost or market, cost being determined on the basis of weighted average. Inventory consists of lighting equipment which are all classified as finished goods. | ||
Use of Estimates | ||
The preparation of consolidated 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 disclosures of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Comprehensive (Loss) Income | ||
The Corporation adopted FASB ASC 220, “Reporting Comprehensive Income”, which establishes standards for the reporting and display of comprehensive income and its components in the consolidated financial statements. Comprehensive income consists of net income and other gains and losses affecting stockholders’ equity that are excluded from net income, such as unrealized gains and losses on investments available for sale, foreign currency translation gains and losses and minimum pension liability. Since inception, the Corporation’s other comprehensive income represents foreign currency translation adjustments. | ||
Net Income (Loss) per Common Stock | ||
FASB ASC 260 requires dual presentation of basic and diluted earnings per share (EPS) with a reconciliation of the numerator and denominator of the EPS computations. Basic earnings per share amounts are based on the weighted average shares of common stock outstanding. If applicable, diluted earnings per stock would assume the conversion, exercise or issuance of all potential common stock instruments such as options, warrants and convertible securities, unless the effect is to reduce a loss or increase earnings per share. Diluted net income (loss) per stock on the potential exercise of the equity-based financial instruments is not presented where anti-dilutive. | ||
Financial Instruments | ||
Fair Value | ||
The guidance for fair value measurements establishes the authoritative definition of fair value, sets out a framework for measuring fair value and outlines the required disclosures regarding fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. | ||
The Corporation uses a three-tier fair value hierarchy based upon observable and non-observable inputs as follows: | ||
• | Level 1 – observable inputs such as quoted prices in active markets; | |
• | Level 2 – inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | |
• | Level 3 – unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |
Cash and cash equivalents are measured using level 1 inputs. | ||
Assets and Liabilities that are measured at Fair Value on a Recurring Basis | ||
The fair value hierarchy requires the use of observable market data when available. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. | ||
The Corporation’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. | ||
The fair value of financial instruments consisting of cash and cash equivalents, trade and other payables and due to related parties were estimated to approximate their carrying values based on the short-term maturity of these instruments. | ||
Risks | ||
Financial instruments that potentially subject the Corporation to credit risk consist principally of cash and cash equivalents. | ||
Management does not believe the Corporation is exposed to significant credit risk. Management, as well, does not believe the Corporation is exposed to significant interest rate risks during the periods presented in these consolidated financial statements as the Corporation does not hold any interest-bearing financial instruments. | ||
Fair Value Measurements | ||
The Corporation follows FASB ASC 820, Fair Value Measurements and Disclosures, for all financial instruments and non-financial instruments accounted for at fair value on a recurring basis. This new accounting standard establishes a single definition of fair value and a framework for measuring fair value, sets out a fair value hierarchy to be used to classify the source of information used in fair value measurement and expands disclosures about fair value measurements required under other accounting pronouncements. It does not change existing guidance as to whether or not an instrument is carried at fair value. The Corporation defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||
When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Corporation considers the principal or most advantageous market in which the Corporation would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. | ||
The Corporation has adopted FASB ASC 825, Financial Instruments, which allows companies to choose to measure eligible financial instruments and certain other items at fair value that are not required to be measured at fair value. The Corporation has not elected the fair value option for any eligible financial instruments. | ||
Currency Risks | ||
The Corporation incurs expenditures in Canadian dollars. Consequently, some assets and liabilities are exposed to Canadian dollar foreign currency fluctuations. As at June 30, 2014, cash and cash equivalents, trade and other payables and due to related parties were all denominated in Canadian dollars. | ||
Impairment of Long-Lived Assets | ||
Impairment losses on long-lived assets are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and, accordingly, all or a portion of such carrying value may not be recoverable. Impairment losses are then measured by comparing the fair value of assets to their carrying amounts. No impairments of these types of assets were recognized during the year ended June 30, 2014. | ||
Revenue Recognition | ||
The Corporation recognizes revenue when persuasive evidence of an arrangement exists, shipment has occurred or services rendered, the price is fixed or determinable and payment is reasonably assured. Customers take ownership at point of sale and bear the costs and risks of delivery. | ||
Income Taxes | ||
The Corporation follows FASB ASC Topic 820, “Income Taxes” which requires the use of the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the consolidated financial statements carrying amounts of existing assets and liabilities and loss carry forwards and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The tax consequences of most events recognized in the current year’s consolidated financial statements are included in determining income taxes currently payable. However, because tax laws and financial accounting standards differ in their recognition and measurement of assets, liabilities, equity, revenues, expenses, gains and losses, differences arise between the amount of taxable income and pre-tax financial income for a year and between the tax bases of assets or liabilities and their reported amounts in the consolidated financial statements. | ||
Because the Corporation assumes that the reported amounts of assets and liabilities will be recovered and settled, respectively, a difference between the tax basis of an asset or a liability and its reported amount in the balance sheet will result in a taxable or a deductible amount in some future years when the related liabilities are settled or the reported amounts of the assets are recovered, which gives rise to a deferred tax asset. The Corporation must then assess the likelihood that the deferred tax assets will be recovered from future taxable income and to the extent the Corporation believes that recovery is not likely, the Corporation must establish a valuation allowance. | ||
The Corporation has adopted FASB guidance on accounting for uncertainty in income taxes which provides a consolidated financial statement recognition threshold and measurement attribute for a tax position taken or expected to be taken in a tax return. Under this guidance, the Corporation may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The guidance also extends to de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures. | ||
Foreign Currency Translation | ||
The functional currency of the Corporation and its subsidiaries is Canadian dollars (“C$”). The Corporation maintains its financial statements in United States currency. | ||
(i) Foreign currency transactions | ||
Transactions in foreign currencies are initially recorded by the Corporation and its subsidiaries at their respective functional currency rates prevailing at the date of the transaction. | ||
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchange at the reporting date. All differences are taken to the consolidated statement of operations. | ||
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. | ||
(ii) Foreign operations | ||
The assets and liabilities of foreign operations are translated to U.S. dollars at exchange rates at the reporting date. The income and expenses of foreign operations are translated into U.S. dollars at exchange rates at the dates of the transactions. | ||
Foreign currency differences are recognized in other comprehensive income in the accumulated other comprehensive income (loss). | ||
Foreign exchange gains or losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely to occur in the foreseeable future and which in substance is considered to form part of the net investment in the foreign operation, are recognized in other comprehensive income in the cumulative amount of foreign currency translation differences. | ||
Recent Accounting Pronouncements | ||
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2011-11 Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (ASC 2011-11). ASC 2011-11 requires that an entity disclosure information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASC 2011-11 is effective for annual and interim periods beginning on or after January 1, 2013. The Corporation has determined that ASC 2011-11 has no impact to the consolidated financial statements. | ||
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-05 Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (ASC 2013-05). ASC 2013-05 requires that when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. ASC 2013-05 is effective for annual and interim periods beginning after December 15, 2013. The Corporation is currently assessing the impact of ASC 2013-05 on the consolidated financial statements. | ||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 provides guidance for the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 is effective for interim and annual reporting periods beginning after December 15, 2013, with early adoption permitted. The Corporation is currently assessing the impact of ASU No. 2013-11 on the consolidated financial statements. | ||
In May 2014, the FASB and the International Accounting Standards Board (IASB) issued, ASU 2014-09 (Topic 606) Revenue from Contracts with Customers. The guidance substantially converges final standards on revenue recognition between the FASB and IASB providing a framework on addressing revenue recognition issues and, upon its effective date, replaces almost all existing revenue recognition guidance, including industry-specific guidance, in current U.S. generally accepted accounting principles. The ASU is effective for annual reporting periods beginning after December 15, 2016. The Corporation is currently assessing the impact of ASU 2014-09 on the consolidated financial statements. | ||
In June, 2014, the FASB issued ASU No. 2014-12, Compensation — Stock Compensation (Topic 718) Accounting for Share-based Payments when Terms of an award Provide That a Performance Target Could be Achieved after the Requisite Service Period. The Amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Corporation has determined that ASU 2014-12 has no impact on the consolidated financial statements. |
DUE_TO_RELATED_PARTIES
DUE TO RELATED PARTIES | 12 Months Ended |
Jun. 30, 2014 | |
DUE TO RELATED PARTIES [Text Block] | ' |
NOTE 3 – DUE TO RELATED PARTIES | |
During the year ended June 30, 2014, the Corporation paid wages of $11,603 (2013 - $12,364) to an officer and shareholder of the Corporation. This amount includes equals 12 monthly payroll expenses at C$1,035 per month. Of this amount, $8,135 is included in trade and other payables. | |
As at June 30, 2014, the Corporation was obligated to shareholders for funds advanced to the Corporation for working capital, in the amount of $66,035 (C$70,497) (2013 - $33,608, C$35,329). The advances are unsecured and no interest rate or payback schedule has been established. |
COMMON_STOCK
COMMON STOCK | 12 Months Ended |
Jun. 30, 2014 | |
COMMON STOCK [Text Block] | ' |
NOTE 4 – COMMON STOCK | |
On October 31, 2012, the Corporation issued 150,000 common stock for a seed capital of $15 dollars. | |
On December 10, 2012, the Corporation issued 12,000,000 common stock in exchange for 100% of the outstanding common stock of MJP Lighting Solutions Ltd. | |
On December 20, 2012, the Corporation issued 3,958,500 common stock for gross proceeds of $120,679 ($118,755 CAD at $0.03 per share) by way of private placement. | |
As at June 30, 2014, there were no warrants or options outstanding (2013 – nil). |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||
Jun. 30, 2014 | |||||||
INCOME TAXES [Text Block] | ' | ||||||
NOTE 5 – INCOME TAXES | |||||||
a) The significant components of the Corporation’s deferred income tax asset are as follows: | |||||||
2014 | 2013 | ||||||
Non-capital losses | $ | 22,399 | $ | 9,000 | |||
Listing fees | 19,209 | 16,691 | |||||
Valuation allowance | (41,608 | ) | (25,691 | ) | |||
- | - | ||||||
b) The rate reconciliation is as follows: | |||||||
2014 | 2013 | ||||||
Net (loss) income before income tax | $ | (91,205 | ) | $ | (87,533 | ) | |
Expected (recovery) expense at statutory rate 34% (2013 – 34% | (31,010 | ) | (29,761 | ) | |||
Non-deductible expenses | - | 1,337 | |||||
Listing fees | - | (556 | ) | ||||
Differential between Canadian and US tax rates | (10,598 | ) | 3,289 | ||||
Change in deferred tax benefits not recognized | 41,608 | 25,691 | |||||
$ | - | $ | - | ||||
The Corporation has $53,949 of loss carry forwards in the United States that begin to expire in 2033. The Corporation has $53,539 of loss carry forwards in Canada that begin to expire in 2033. No tax benefits have been recognized in these consolidated financial statements as the criteria for recognition has not been met. |
Recovered_Sheet1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Jun. 30, 2014 | ||
Basis of Presentation [Policy Text Block] | ' | |
Basis of Presentation | ||
The Corporation’s consolidated financial statements included herein are prepared under the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. These consolidated financial statements include the financial activities of its wholly owned subsidiaries, MJP Lighting Solutions Ltd. and MJP Holdings Ltd., and 100 percent of its assets, liabilities and net income or loss. All inter-company balances and transactions have been eliminated. | ||
Cash and Cash Equivalents [Policy Text Block] | ' | |
Cash and Cash Equivalents | ||
For purposes of the consolidated statement of cash flows, management considers liquid investments with an original maturity of three months or less to be cash equivalents. As at June 30, 2014, all cash amounts deposited in accounts were federally insured. | ||
Inventory [Policy Text Block] | ' | |
Inventory | ||
Inventories recorded in the consolidated financial statements are stated at the lower of cost or market, cost being determined on the basis of weighted average. Inventory consists of lighting equipment which are all classified as finished goods. | ||
Use of Estimates, Policy [Policy Text Block] | ' | |
Use of Estimates | ||
The preparation of consolidated 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 disclosures of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Comprehensive (Loss) Income [Policy Text Block] | ' | |
Comprehensive (Loss) Income | ||
The Corporation adopted FASB ASC 220, “Reporting Comprehensive Income”, which establishes standards for the reporting and display of comprehensive income and its components in the consolidated financial statements. Comprehensive income consists of net income and other gains and losses affecting stockholders’ equity that are excluded from net income, such as unrealized gains and losses on investments available for sale, foreign currency translation gains and losses and minimum pension liability. Since inception, the Corporation’s other comprehensive income represents foreign currency translation adjustments. | ||
Net Income (Loss) per Common Stock [Policy Text Block] | ' | |
Net Income (Loss) per Common Stock | ||
FASB ASC 260 requires dual presentation of basic and diluted earnings per share (EPS) with a reconciliation of the numerator and denominator of the EPS computations. Basic earnings per share amounts are based on the weighted average shares of common stock outstanding. If applicable, diluted earnings per stock would assume the conversion, exercise or issuance of all potential common stock instruments such as options, warrants and convertible securities, unless the effect is to reduce a loss or increase earnings per share. Diluted net income (loss) per stock on the potential exercise of the equity-based financial instruments is not presented where anti-dilutive. | ||
Financial Instruments [Policy Text Block] | ' | |
Financial Instruments | ||
Fair Value | ||
The guidance for fair value measurements establishes the authoritative definition of fair value, sets out a framework for measuring fair value and outlines the required disclosures regarding fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. | ||
The Corporation uses a three-tier fair value hierarchy based upon observable and non-observable inputs as follows: | ||
• | Level 1 – observable inputs such as quoted prices in active markets; | |
• | Level 2 – inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | |
• | Level 3 – unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |
Cash and cash equivalents are measured using level 1 inputs. | ||
Assets and Liabilities that are measured at Fair Value on a Recurring Basis | ||
The fair value hierarchy requires the use of observable market data when available. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. | ||
The Corporation’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. | ||
The fair value of financial instruments consisting of cash and cash equivalents, trade and other payables and due to related parties were estimated to approximate their carrying values based on the short-term maturity of these instruments. | ||
Risks | ||
Financial instruments that potentially subject the Corporation to credit risk consist principally of cash and cash equivalents. | ||
Management does not believe the Corporation is exposed to significant credit risk. Management, as well, does not believe the Corporation is exposed to significant interest rate risks during the periods presented in these consolidated financial statements as the Corporation does not hold any interest-bearing financial instruments. | ||
Fair Value Measurement, Policy [Policy Text Block] | ' | |
Fair Value Measurements | ||
The Corporation follows FASB ASC 820, Fair Value Measurements and Disclosures, for all financial instruments and non-financial instruments accounted for at fair value on a recurring basis. This new accounting standard establishes a single definition of fair value and a framework for measuring fair value, sets out a fair value hierarchy to be used to classify the source of information used in fair value measurement and expands disclosures about fair value measurements required under other accounting pronouncements. It does not change existing guidance as to whether or not an instrument is carried at fair value. The Corporation defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||
When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Corporation considers the principal or most advantageous market in which the Corporation would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. | ||
The Corporation has adopted FASB ASC 825, Financial Instruments, which allows companies to choose to measure eligible financial instruments and certain other items at fair value that are not required to be measured at fair value. The Corporation has not elected the fair value option for any eligible financial instruments. | ||
Currency Risks [Policy Text Block] | ' | |
Currency Risks | ||
The Corporation incurs expenditures in Canadian dollars. Consequently, some assets and liabilities are exposed to Canadian dollar foreign currency fluctuations. As at June 30, 2014, cash and cash equivalents, trade and other payables and due to related parties were all denominated in Canadian dollars. | ||
Impairment of Long-Lived Assets [Policy Text Block] | ' | |
Impairment of Long-Lived Assets | ||
Impairment losses on long-lived assets are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and, accordingly, all or a portion of such carrying value may not be recoverable. Impairment losses are then measured by comparing the fair value of assets to their carrying amounts. No impairments of these types of assets were recognized during the year ended June 30, 2014. | ||
Revenue Recognition, Policy [Policy Text Block] | ' | |
Revenue Recognition | ||
The Corporation recognizes revenue when persuasive evidence of an arrangement exists, shipment has occurred or services rendered, the price is fixed or determinable and payment is reasonably assured. Customers take ownership at point of sale and bear the costs and risks of delivery. | ||
Income Taxes [Policy Text Block] | ' | |
Income Taxes | ||
The Corporation follows FASB ASC Topic 820, “Income Taxes” which requires the use of the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the consolidated financial statements carrying amounts of existing assets and liabilities and loss carry forwards and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The tax consequences of most events recognized in the current year’s consolidated financial statements are included in determining income taxes currently payable. However, because tax laws and financial accounting standards differ in their recognition and measurement of assets, liabilities, equity, revenues, expenses, gains and losses, differences arise between the amount of taxable income and pre-tax financial income for a year and between the tax bases of assets or liabilities and their reported amounts in the consolidated financial statements. | ||
Because the Corporation assumes that the reported amounts of assets and liabilities will be recovered and settled, respectively, a difference between the tax basis of an asset or a liability and its reported amount in the balance sheet will result in a taxable or a deductible amount in some future years when the related liabilities are settled or the reported amounts of the assets are recovered, which gives rise to a deferred tax asset. The Corporation must then assess the likelihood that the deferred tax assets will be recovered from future taxable income and to the extent the Corporation believes that recovery is not likely, the Corporation must establish a valuation allowance. | ||
The Corporation has adopted FASB guidance on accounting for uncertainty in income taxes which provides a consolidated financial statement recognition threshold and measurement attribute for a tax position taken or expected to be taken in a tax return. Under this guidance, the Corporation may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The guidance also extends to de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures. | ||
Foreign Currency Translation [Policy Text Block] | ' | |
Foreign Currency Translation | ||
The functional currency of the Corporation and its subsidiaries is Canadian dollars (“C$”). The Corporation maintains its financial statements in United States currency. | ||
(i) Foreign currency transactions | ||
Transactions in foreign currencies are initially recorded by the Corporation and its subsidiaries at their respective functional currency rates prevailing at the date of the transaction. | ||
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchange at the reporting date. All differences are taken to the consolidated statement of operations. | ||
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. | ||
(ii) Foreign operations | ||
The assets and liabilities of foreign operations are translated to U.S. dollars at exchange rates at the reporting date. The income and expenses of foreign operations are translated into U.S. dollars at exchange rates at the dates of the transactions. | ||
Foreign currency differences are recognized in other comprehensive income in the accumulated other comprehensive income (loss). | ||
Foreign exchange gains or losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely to occur in the foreseeable future and which in substance is considered to form part of the net investment in the foreign operation, are recognized in other comprehensive income in the cumulative amount of foreign currency translation differences. | ||
Recent Accounting Pronouncements [Policy Text Block] | ' | |
Recent Accounting Pronouncements | ||
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2011-11 Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (ASC 2011-11). ASC 2011-11 requires that an entity disclosure information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASC 2011-11 is effective for annual and interim periods beginning on or after January 1, 2013. The Corporation has determined that ASC 2011-11 has no impact to the consolidated financial statements. | ||
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-05 Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (ASC 2013-05). ASC 2013-05 requires that when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. ASC 2013-05 is effective for annual and interim periods beginning after December 15, 2013. The Corporation is currently assessing the impact of ASC 2013-05 on the consolidated financial statements. | ||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 provides guidance for the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 is effective for interim and annual reporting periods beginning after December 15, 2013, with early adoption permitted. The Corporation is currently assessing the impact of ASU No. 2013-11 on the consolidated financial statements. | ||
In May 2014, the FASB and the International Accounting Standards Board (IASB) issued, ASU 2014-09 (Topic 606) Revenue from Contracts with Customers. The guidance substantially converges final standards on revenue recognition between the FASB and IASB providing a framework on addressing revenue recognition issues and, upon its effective date, replaces almost all existing revenue recognition guidance, including industry-specific guidance, in current U.S. generally accepted accounting principles. The ASU is effective for annual reporting periods beginning after December 15, 2016. The Corporation is currently assessing the impact of ASU 2014-09 on the consolidated financial statements. | ||
In June, 2014, the FASB issued ASU No. 2014-12, Compensation — Stock Compensation (Topic 718) Accounting for Share-based Payments when Terms of an award Provide That a Performance Target Could be Achieved after the Requisite Service Period. The Amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Corporation has determined that ASU 2014-12 has no impact on the consolidated financial statements. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||
2014 | 2013 | ||||||
Non-capital losses | $ | 22,399 | $ | 9,000 | |||
Listing fees | 19,209 | 16,691 | |||||
Valuation allowance | (41,608 | ) | (25,691 | ) | |||
- | - | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||
2014 | 2013 | ||||||
Net (loss) income before income tax | $ | (91,205 | ) | $ | (87,533 | ) | |
Expected (recovery) expense at statutory rate 34% (2013 – 34% | (31,010 | ) | (29,761 | ) | |||
Non-deductible expenses | - | 1,337 | |||||
Listing fees | - | (556 | ) | ||||
Differential between Canadian and US tax rates | (10,598 | ) | 3,289 | ||||
Change in deferred tax benefits not recognized | 41,608 | 25,691 | |||||
$ | - | $ | - |
NATURE_AND_CONTINUANCE_OF_OPER1
NATURE AND CONTINUANCE OF OPERATIONS (Narrative) (Details) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Nature And Continuance Of Operations 1 | 12,000,000 |
Nature And Continuance Of Operations 2 | 100.00% |
Nature And Continuance Of Operations 3 | $193,568 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2014 | |
Summary Of Significant Accounting Policies 1 | 100.00% |
DUE_TO_RELATED_PARTIES_Narrati
DUE TO RELATED PARTIES (Narrative) (Details) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | |
USD ($) | CAD | |
M | ||
Due To Related Parties 1 | $11,603 | ' |
Due To Related Parties 2 | 12,364 | ' |
Due To Related Parties 3 | 12 | 12 |
Due To Related Parties 4 | 1,035 | 1,035 |
Due To Related Parties 5 | 8,135 | ' |
Due To Related Parties 6 | 66,035 | ' |
Due To Related Parties 7 | ' | 70,497 |
Due To Related Parties 8 | 33,608 | ' |
Due To Related Parties 9 | ' | 35,329 |
COMMON_STOCK_Narrative_Details
COMMON STOCK (Narrative) (Details) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Common Stock 1 | 150,000 |
Common Stock 2 | $15 |
Common Stock 3 | 12,000,000 |
Common Stock 4 | 100.00% |
Common Stock 5 | 3,958,500 |
Common Stock 6 | 120,679 |
Common Stock 7 | $118,755 |
Common Stock 8 | $0.03 |
Common Stock 9 | 0 |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Income Taxes 1 | $53,949 |
Income Taxes 2 | $53,539 |
Schedule_of_Deferred_Tax_Asset
Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 1 | $22,399 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 2 | 9,000 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 3 | 19,209 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 4 | 16,691 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 5 | -41,608 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 6 | -25,691 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 7 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 8 | $0 |
Schedule_of_Effective_Income_T
Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 1 | ($91,205) |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 2 | -87,533 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 3 | 34.00% |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 4 | 34.00% |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 5 | -31,010 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 6 | -29,761 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 7 | 0 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 8 | 1,337 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 9 | 0 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 10 | -556 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 11 | -10,598 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 12 | 3,289 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 13 | 41,608 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 14 | 25,691 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 15 | 0 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 16 | $0 |