| SUMMARY OF SIGNIFICANT POLICIES | Basis
of Presentation Use
of estimates Cash
and cash equivalents Accounts
receivable Revenue
recognition The
Company also enters into arrangements with multiple deliverables that generally include web design and software development, domain
and hosting, and maintenance and other services, with the term ranging from one month to two years. The Company analyzes its agreements
to determine whether the elements can be separated and accounted for individually or as a single unit of accounting in accordance
with the Financial Accounting Standards Board's (the FASB) Accounting Standards Codification (ASC) 605-25,
Revenue Arrangements with Multiple Deliverables, and Staff Accounting Bulletin (SAB) 104, Revenue
Recognition. Allocation of revenue to individual elements that qualify for separate accounting is based on the elements
fair value in accordance with ASC 605 and related revenues are recognized pursuant to the criteria described above. During the
year ended December 31, 2015, in one of the arrangements that contain multiple deliverables, the Company acted as an agent in
the transaction. As the agent, it records revenues on a net basis. Customer payments received in advance of the performance of
services are recorded as deferred revenues in the balance sheets, and are recognized as revenue when the web and IT services are
rendered. Cost
of revenues Earnings
(loss) per share Stock-based
compensation Related
parties Income
taxes The
Company recorded valuation allowances on the net deferred tax assets. Management will reassess the realization of deferred tax
assets based on the accounting standards for income taxes each reporting period. To the extent that the financial results of operations
improve and it becomes more likely than not that the deferred tax assets are realizable, the Company will be able to reduce the
valuation allowance. Significant
judgment is required in evaluating the Companys tax positions and determining its provision for income taxes. During the
ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain.
Accounting standards regarding uncertainty in income taxes provides a two-step approach to recognizing and measuring uncertain
tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence
indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or
litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely,
based solely on the technical merits, of being sustained on examinations. The Company considers many factors when evaluating and
estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate
actual outcomes. Fair
value of financial instruments Level
1 Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the
ability to access at the measurement date. Level
2 Inputs are inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either
directly or indirectly. Level
3 Inputs are unobservable inputs for the asset or liability. The
Company does not have any financial assets or liabilities that are required to be fair valued on a recurring basis. For
certain of the Company's financial instruments, including cash and cash equivalents, accounts receivables, accounts payable and
accrued liabilities, amounts due to related parties and income tax payable, the carrying amounts approximate fair values due to
their short maturities. Transactions
involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive,
free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the
related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such
representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related
parties due to their related party nature. Foreign
currency transactions and translation Accounting
standards note yet adopted In
November 2015 the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which changes how deferred
taxes are classified on the Companys balance sheets and is effective for financial statements issued for annual periods
beginning after December 15, 2016, with early adoption permitted. ASU 2015-17 requires all deferred tax assets and liabilities
to be classified as non-current. Upon adoption, we anticipate no effect on our balances sheets as the Company has no deferred
tax assets and liabilities at March 31, 2016 and recorded a valuation allowance reducing our net deferred tax assets and liabilities
to zero at December 31, 2015. In
February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases. This ASU is based
on the principle that entities should recognize assets and liabilities arising from leases. The ASU does not significantly
change the lessees recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Leases
are classified as finance or operating. The ASUs primary change is the requirement for entities to recognize
a lease liability for payments and a right of use asset representing the right to use the leased asset during the term on operating
lease arrangements. Lessees are permitted to make an accounting policy election to not recognize the asset and liability
for leases with a term of twelve months or less. Lessors accounting under the ASC is largely unchanged from the
previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees
and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The
effective date will be the first quarter of fiscal year 2020 with early adoption permitted. Management continues to
assess the overall impact the adoption of ASU 2016-02 will have on the Companys financial statements. In
March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations
(Reporting Revenue Gross versus Net). The amendments in this ASU are intended to improve the operability and understandability
of the implementation guidance on principal versus agent considerations by amending certain existing illustrative examples and
adding additional illustrative examples to assist in the application of the guidance. The effective date and transition of these
amendments is the same as the effective date and transition of ASU 2014-09, Revenue from Contracts with Customers (Topic
606). Public entities should apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15,
2017, including interim reporting periods therein. The Company is currently in the process of evaluating the impact of the adoption
on its financial statements. In
March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based
Payment Accounting. The amendments are effective for public companies for annual periods beginning after December 15, 2016,
and interim periods within those annual periods. Several aspects of the accounting for share-based payment award transactions
are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c)
classification on the statement of cash flows. The Company is currently in the process of evaluating the impact of the adoption
on its financial statements. |
