| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of presentation These
accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the
United States of America (“U.S. GAAP”). Certain
reclassifications have been made to the prior period’s consolidated financial statements to conform to the current period’s
presentation. Principles
of consolidation The
consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and
transactions have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss
of those wholly-owned subsidiaries. The
Company’s subsidiaries are listed as follows: SUMMARY OF IDENTITIES OF CONSOLIDATED SUBSIDIARIES
Name
of Company Place
of incorporation Attributable Authorized
capital
Image P2P Trading Group Limited
(“Image P2P”) British Virgin Islands 100 USD 50,000 Use
of estimates In
preparing these consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets
and liabilities in the balance sheet and revenues and expenses during the periods reported. Actual results may differ from these estimates. Revenue
Recognition Revenue
is generated through referral service. Revenue is recognized when a customer obtains control of promised goods or services and is recognized
in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. In addition,
the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with
customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those
goods and services. The Company applies the following five-step model in order to determine this amount:
(i) identification
of the promised goods and services in the contract;
(ii) determination
of whether the promised goods and services are performance obligations, including whether they are distinct in the context of the
contract;
(iii) measurement
of the transaction price, including the constraint on variable consideration;
(iv) allocation
of the transaction price to the performance obligations; and
(v) recognition
of revenue when (or as) the Company satisfies each performance obligation. The
Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Under Topic 606, the Company records revenue when persuasive
evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable. The Company
records revenue upon the end of service agreement. Stock-Based
Compensation The
Company accounts for stock-based compensation for employees and directors in accordance with ASC 718, Compensation (“ASC 718”).
ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statement
of operations based on their fair values. Under the provisions of ASC 718, stock-based compensation costs are measured at the grant date,
based on the fair value of the award, and are recognized as expense over the employee’s requisite service period (generally the
vesting period of the equity grant). For an award that is fully vested on the grant date, all compensation cost would be recognized on
the grant date. The
fair value of the Company’s common stock awards as of the grant date is determined using the observable market price (i.e. closing
price) of the Company’s common stock as of the grant date. The
Company accounts for stock-based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the
fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable,
using the measurement date guidelines enumerated in ASU 2018-07. Income
taxes Income
taxes are determined in accordance with the provisions of ASC 740, “Income Taxes” (“ ASC 740 ASC
740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements
uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the
financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax
positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of
being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. For
the years ended December 31, 2021 and 2020, the Company did not not Financial
instruments The
carrying value of the Company’s financial instruments (excluding short-term bank borrowing and note payable): cash and cash equivalents,
accounts receivable, accounts payable, amount due to a related party, other payables and accrued liabilities approximate at their fair
values because of the short-term nature of these financial instruments. The
Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”),
with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy
that prioritizes the inputs used in measuring fair value as follows:
● Level
1: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets;
● Level
2: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments
in markets that are not active, and model-based valuation techniques (e.g. Black-Scholes Option-Pricing model) for which all significant
inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets
or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using
market-based observable inputs; and
● Level
3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would
use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing
models and discounted cash flow models. Fair
value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates
are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision.
Changes in assumptions could significantly affect the estimates. Commitments
and contingencies The
Company follows ASC 440 & ASC 450, subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies
and commitments respectively. Certain conditions may exist as of the date the financial statements are issued, which may result in a
loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such
contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal
proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the
perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected
to be sought therein. If
the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability
can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates
that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then
the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss
contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.
Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on
the Company’s consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters
will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. Comprehensive
income Comprehensive
income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among
other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income
are required to be reported in a financial statement that is presented with the same prominence as other financial statements. The Company’s
current component of other comprehensive income includes the foreign currency translation adjustment and unrealized gain or loss. Foreign
currency translation Transactions
denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing
at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated
into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded
in the statement of operations. The
accompanying financial statements are presented in United States dollars (“USD”). The functional currency of the Company
and Image P2P is the USD. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency
is not the USD are translated into USD, in accordance with ASC 830, “Translation of Financial Statements”, using the exchange
rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses
resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other
comprehensive income (loss) within the statement of stockholders’ equity. Treasury
Stock The
Company records treasury stock at cost. Earnings
per share The
Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS
is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the
period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible
securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later.
Potential common shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are
excluded from the calculation of diluted EPS. For the years ended December 31, 2021 and 2020, the Company did not Reclassifications Certain
prior period amounts have been reclassified to conform with the current period presentation. However, there are no material or significant
rearrangements or reclassification made during the year. Recently
Adopted Accounting Standards In
February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (“ASC 842”). The guidance
requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement
purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Lessor accounting is similar
to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing
sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. ASC
842 is effective for fiscal years beginning after December 15, 2018. The adoption of ASC 842, did not have a material effect on the Company’s
consolidated financial statements. Management
has considered all recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements
will not have a material effect on the Company’s financial statements. |
