| Note 2 - Significant and Critical Accounting Policies and Practices | The
Management of the Company is responsible for the selection and use of appropriate accounting policies and the appropriateness
of accounting policies and their application. Critical accounting policies and practices are those that are both most important
to the portrayal of the Companys financial condition and results and require managements most difficult, subjective,
or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain.
The Companys significant and critical accounting policies and practices are disclosed below as required by generally accepted
accounting principles. Basis
of Presentation The
Companys consolidated financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America (U.S. GAAP). Fiscal
Year End The
Company elected June 30th as its fiscal year end date upon its formation. Use
of Estimates and Assumptions and Critical Accounting Estimates and Assumptions 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 disclosure
of contingent assets and liabilities at the date(s) of the financial statements and the reported amounts of revenues and expenses
during the reporting period(s). Critical
accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and
judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact
of the estimate on financial condition or operating performance is material. The Companys critical accounting estimates
and assumptions affecting the financial statements were:
(i)
Assumption
as a going concern:
(ii) Fair
value of long-lived assets
(iii)
Valuation
allowance for deferred tax assets: These
significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached
to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management
bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the
financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from other sources. Management
regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes
in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those
estimates are adjusted accordingly. Actual
results could differ from those estimates. Fair
Value of Financial Instrument and Fair Value Measurements The
Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial
instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (Paragraph 820-10-35-37) to
measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in
generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency
and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy
which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy
gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest
priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described
below:
Level
1 Quoted
market prices available in active markets for identical assets or liabilities as of the reporting date.
Level
2 Pricing
inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable
as of the reporting date.
Level
3 Pricing
inputs that are generally observable inputs and not corroborated by market data. Financial
assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or
similar techniques and at least one significant model assumption or input is unobservable. The
fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities
and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within
more than one level described above, the categorization is based on the lowest level input that is significant to the fair value
measurement of the instrument. The
carrying amounts of the Companys financial assets and liabilities, such as cash, and accrued expenses, approximate their
fair values because of the short maturity of these instruments. The
Companys note payable approximates the fair value of such instrument based upon managements best estimate of interest
rates that would be available to the Company for similar financial arrangement at June 30, 2015. 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. Carrying
Value, Recoverability and Impairment of Long-Lived Assets The
Company has adopted Section 360-10-35 of the FASB Accounting Standards Codification for its long-lived assets. Pursuant to ASC
Paragraph 360-10-35-17 an impairment loss shall be recognized only if the carrying amount of a long-lived asset (asset group)
is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset (asset group) is not recoverable if it
exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group).
That assessment shall be based on the carrying amount of the asset (asset group) at the date it is tested for recoverability.
An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its
fair value. Pursuant to ASC Paragraph 360-10-35-20 if an impairment loss is recognized, the adjusted carrying amount of a long-lived
asset shall be its new cost basis. For a depreciable long-lived asset, the new cost basis shall be depreciated (amortized) over
the remaining useful life of that asset. Restoration of a previously recognized impairment loss is prohibited. Pursuant
to ASC Paragraph 360-10-35-21 the Companys long-lived asset (asset group) is tested for recoverability whenever events
or changes in circumstances indicate that its carrying amount may not be recoverable. The Company considers the following to be
some examples of such events or changes in circumstances that may trigger an impairment review: (a) significant decrease in the
market price of a long-lived asset (asset group); (b) A significant adverse change in the extent or manner in which a long-lived
asset (asset group) is being used or in its physical condition; (c) A significant adverse change in legal factors or in the business
climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator;
(d) An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of
a long-lived asset (asset group); (e) A current-period operating or cash flow loss combined with a history of operating or cash
flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset
group); and (f) A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed
of significantly before the end of its previously estimated useful life. The Company tests its long-lived assets for potential
impairment indicators at least annually and more frequently upon the occurrence of such events. Pursuant
to ASC Paragraphs 360-10-45-4 and 360-10-45-5 an impairment loss recognized for a long-lived asset (asset group) to be held and
used shall be included in income from continuing operations before income taxes in the income statement of a business entity.
If a subtotal such as income from operations is presented, it shall include the amount of that loss. A gain or loss recognized
on the sale of a long-lived asset (disposal group) that is not a component of an entity shall be included in income from continuing
operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented,
it shall include the amounts of those gains or losses. Cash
Equivalents The
Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. Real
Estate Real
Estate is recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged
to operations as incurred. Depreciation is computed by the straight-line method (after taking into account their respective estimated
residual values) over the estimated useful lives of the respective assets as follows:
Estimated
Useful Life (Years)
Building 30
Land N/A Upon
sale or retirement, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected
in the statements of operations. Related
Parties The
Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure
of related party transactions. Pursuant
to Section 850-10-20 the related parties include a. affiliates (Affiliate means, with respect to any specified
Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under
common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act) of the Company;
b. entities for which investments in their equity securities would be required, absent the election of the fair value option
under the Fair Value Option Subsection of Section 8251015, to be accounted for by the equity method by the investing
entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the
trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which
the Company may deal if one party controls or can significantly influence the management or operating policies of the other to
an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other
parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership
interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting
parties might be prevented from fully pursuing its own separate interests. The
financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense
allowances, and other similar items in the ordinary course of business. The disclosures shall include: a. the nature of the
relationship(s) involved b. description of the transactions, including transactions to which no amounts or nominal amounts were
ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an
understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each
of the periods for which income statements are presented and the effects of any change in the method of establishing the terms
from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet
presented and, if not otherwise apparent, the terms and manner of settlement. Commitment
and Contingencies The
Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain
conditions may exist as of the date the consolidated 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 Companys financial statements. If the assessment
indicates that a potential 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. Revenue
Recognition The
Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company will
recognize revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned
when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped
or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is
reasonably assured. In addition to the aforementioned general policy, the following are the specific revenue recognition policies
for each major category of revenue: Residential
property leases will be for terms of generally one year or less. Rental income is recognized on a straight-line basis over the
term of the lease. Rent
concessions, including free rent if incurred in connection with residential property leases, will be amortized on a straight-line
basis over the terms of the related leases (generally one year) and will be charged as a reduction of rental revenue. Deferred
Tax Assets and Income Tax Provision The
Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets
and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities
and are measured using the current enacted tax rates and laws. Deferred tax assets are reduced by a valuation allowance to the
extent management concludes it is more likely than not that the assets will not be realized. The effect on deferred tax assets
and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment
date. The
Company adopted section 740-10-25 of the FASB Accounting Standards Codification (Section 740-10-25). Section 740-10-25
addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the
financial statements. Under Section 740-10-25, the Company 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 financial statements from such a position should be measured based
on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section
740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim
periods and requires increased disclosures. The
estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying
balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred
tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. Management
makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous
estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in
these jurisdictions. In managements opinion, adequate provisions for income taxes have been made for all years. If actual
taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary. Tax
years that remain subject to examination by major tax jurisdictions The
Company discloses tax years that remain subject to examination by major tax jurisdictions pursuant to the ASC Paragraph 740-10-50-15. Earnings
per Share Earnings
per share ("EPS") are the amount of earnings attributable to each share of common stock. For convenience, the term is
used to refer to either earnings or loss per share. EPS is computed pursuant to section 260-10-45 of the FASB Accounting Standards
Codification. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16 Basic EPS shall be computed by dividing income available
to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the
period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred
stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned)
from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation
of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional
common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect
the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options
or warrants. Pursuant
to ASC Paragraphs 260-10-45-45-21 through 260-10-45-45-23 Diluted EPS shall be based on the most advantageous conversion rate
or exercise price from the standpoint of the security holder. The dilutive effect of outstanding call options and warrants (and
their equivalents) issued by the reporting entity shall be reflected in diluted EPS by application of the treasury stock method
unless the provisions of paragraphs 260-10-45-35 through 45-36 and 260-10-55-8 through 55-11 require that another method be applied.
Equivalents of options and warrants include non-vested stock granted to employees, stock purchase contracts, and partially paid
stock subscriptions (see paragraph 260105523). Anti-dilutive contracts, such as purchased put options and
purchased call options, shall be excluded from diluted EPS. Under the treasury stock method: a. Exercise of options and warrants
shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued.
b. The proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the
period. (See paragraphs 260-10-45-29 and 260-10-55-4 through 55-5.) c. The incremental shares (the difference between the
number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted
EPS computation. There
were no potentially dilutive common shares outstanding for the fiscal year ending June 30, 2015 or for the period from March 31,
2014 (inception) through June 30, 2014. Cash
Flows Reporting The
Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash
receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions
of each category, and uses the indirect or reconciliation method (Indirect method) as defined by paragraph 230-10-45-25
of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile
it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and
payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income
that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency
cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held
in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents
and separately provides information about investing and financing activities not resulting in cash receipts or payments in the
period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification. Subsequent
Events The
Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent
events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant
to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued
when they are widely distributed to users, such as through filing them on EDGAR. Recently
Issued Accounting Pronouncements In
May 2014, the FASB issued the FASB Accounting Standards Update No. 2014-09 Revenue from Contracts with Customers (Topic
606) (ASU 2014-09) This
guidance amends the existing FASB Accounting Standards Codification, creating a new Topic 606, Revenue from Contracts with
Customer. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods
or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for
those goods or services. To
achieve that core principle, an entity should apply the following steps:
1. Identify the contract(s) with the customer
2. Identify the performance obligations in the contract
3. Determine the transaction price
4. Allocate the transaction price to the performance obligations in
the contract
5. Recognize revenue when (or as) the entity satisfies a performance
obligations The
ASU also provides guidance on disclosures that should be provided to enable financial statement users to understand the nature,
amount, timing, and uncertainty of revenue recognition and cash flows arising from contracts with customers. Qualitative and quantitative
information is required about the following:
1. Contracts with customers
2. Significant judgments and changes in judgments
3. Assets recognized from the costs to obtain or fulfill a contract. In
June 2014, the FASB issued ASU No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting
Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. The
amendments in this Update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards
Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities
from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date
information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a
development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4)
disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the
development stage. The
amendments also clarify that the guidance in Topic 275, Risks and Uncertainties, is applicable to entities that have not commenced
planned principal operations. Finally,
the amendments remove paragraph 810-10-15-16. Paragraph 810-10-15-16 states that a development stage entity does not meet the
condition in paragraph 810-10-15-14(a) to be a variable interest entity if (1) the entity can demonstrate that the equity invested
in the legal entity is sufficient to permit it to finance the activities that it is currently engaged in and (2) the entitys
governing documents and contractual arrangements allow additional equity investments. The
amendments in this Update also eliminate an exception provided to development stage entities in Topic 810, Consolidation, for
determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk. The
amendments to eliminate that exception simplify U.S. GAAP by reducing avoidable complexity in existing accounting literature and
improve the relevance of information provided to financial statement users by requiring the application of the same consolidation
guidance by all reporting entities. The elimination of the exception may change the consolidation analysis, consolidation decision,
and disclosure requirements for a reporting entity that has an interest in an entity in the development stage. The
amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements of Topic
915 should be applied retrospectively except for the clarification to Topic 275, which shall be applied prospectively. For public
business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim
periods therein. Early
application of each of the amendments is permitted for any annual reporting period or interim period for which the entitys
financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon
adoption, entities will no longer present or disclose any information required by Topic 915. In
August 2014, the FASB issued the FASB Accounting Standards Update No. 2014-15 Presentation of Financial StatementsGoing
Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern (ASU
2014-15). In
connection with preparing financial statements for each annual and interim reporting period, an entitys management should
evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entitys
ability to continue as a going concern within one year after the date that the financial statements are issued financial statements are available to be issued financial statements
are issued financial statements are available to be issued probable When
management identifies conditions or events that raise substantial doubt about an entitys ability to continue as a going
concern, management should consider whether its plans that are intended to mitigate those relevant conditions or events will alleviate
the substantial doubt. The mitigating effect of managements plans should be considered only to the extent that (1) it is
probable that the plans will be effectively implemented and, if so, (2) it is probable that the plans will mitigate the conditions
or events that raise substantial doubt about the entitys ability to continue as a going concern. If
conditions or events raise substantial doubt about an entitys ability to continue as a going concern, but the substantial
doubt is alleviated as a result of consideration of managements plans, the entity should disclose information that enables
users of the financial statements to understand all of the following (or refer to similar information disclosed elsewhere in the
footnotes):
a. Principal
conditions or events that raised substantial doubt about the entitys ability to continue as a going concern (before
consideration of managements plans)
b. Managements
evaluation of the significance of those conditions or events in relation to the entitys ability to meet its obligations
c. Managements
plans that alleviated substantial doubt about the entitys ability to continue as a going concern. If
conditions or events raise substantial doubt about an entitys ability to continue as a going concern, and substantial doubt
is not alleviated after consideration of managements plans, an entity should include a statement in the footnotes indicating
that there is substantial doubt about the entitys ability to continue as a going concern
a. Principal
conditions or events that raise substantial doubt about the entitys ability to continue as a going concern
b. Managements
evaluation of the significance of those conditions or events in relation to the entitys ability to meet its obligations
c. Managements
plans that are intended to mitigate the conditions or events that raise substantial doubt about the entitys ability
to continue as a going concern. The
amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim
periods thereafter. Early application is permitted. Management does not believe that any other recently
issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial
statements. |
