| Note 2 - Significant Accounting Policies and Recent Accounting Pronouncements | Use of Estimates and Assumptions The preparation of financial statements in
conformity with generally accepted accounting principles 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 of the financial statements
and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Due to the limited level of operations, the
Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern. Cash and Cash Equivalents The Company considers all highly liquid investments
with an original maturity of three months or less when purchased to be cash equivalents. Fair Value of Financial Instruments ASC 825, "Disclosures about Fair Value
of Financial Instruments", requires disclosure of fair value information about financial instruments. ASC 820, "Fair
Value Measurements" defines fair value, establishes a framework for measuring fair value in generally accepted accounting
principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain
market assumptions and pertinent information available to management as of June 30, 2016. The respective carrying values of certain on-balance-sheet
financial instruments approximate their fair values. These financial instruments include cash, accrued liabilities and notes payable.
Fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and
their carrying amounts approximate fair value. Development Stage Entity The Company decided to early adopt ASU 2014-10
which eliminates the definition of a development stage entity, eliminates the development stage presentation and disclosure requirements
under ASC 915, and amends provisions of existing variable interest entity guidance under ASC 810. Basic and Diluted Loss Per Share The Company computes earnings (loss) per share
in accordance with ASC 260-10-45 "Earnings per Share", which requires presentation of both basic and diluted earnings
per share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss)
available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings
(loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings (loss) per
share excludes all potential common shares if their effect is anti-dilutive. The Company has no potential dilutive instruments,
and therefore, basic and diluted earnings (loss) per share are equal. Revenue Recognition The company follows the guidelines of ASC 605-15
for revenue recognition. Revenue is recognized when all the following conditions have been met:
a. the customer has prepaid for the product;
b. the product has been shipped from either Paramount or one of our suppliers, and;
c. the product has been delivered and signed for by the customer as evidenced by the shipping company. Customers are allowed to return the products
within 30 days for exchange or refund if defects in manufacturing are identified. The company does not believe the 30 day exchange
or refund will have a material impact on our revenue recognition as any product which has a defect in manufacturing will be returned
to the supplier for replacement or refund for the customer based upon pursuant law and the Uniform Commercial Code. We do not make
any allowance to returns. To date there have been no returns and given the terms with our suppliers that products would be returned
directly to them for replacement we don't expect any returns so the allowance is currently deemed not necessary. Based on the above, the Company determined
that the revenue recognition for the sales is in accordance with the FASB ASC 605-15-25-1. Income Taxes We use the asset and liability method of accounting
for income taxes in accordance with ASC Topic 740, "Income Taxes." Under this method, income tax expense is recognized
for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences
resulting from matters that have been recognized in an entity's financial statements or tax returns. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in
the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred
tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion
or all of the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting
for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement
attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.
ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods,
disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. Our effective tax rate for fiscal years 2016
and 2015 is 17%, which we expect to be fairly consistent in the near term. Our tax rate is also affected by discrete items that
may occur in any given year, but are not consistent from year to year. Income taxes are calculated and accrued for
U.S. taxes only. The company does not currently accrue any Latvian taxes under Latvian corporate rules. As we become profitable,
and have sustained revenue within Latvia, we may become subject to Latvian taxes. Recent Accounting Pronouncements The Financial Accounting Standards Board ("FASB")
periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting.
The Company has reviewed the recently issued pronouncements. During this review the Company decided to early adopt ASU 2014-10
which eliminates the definition of a development stage entity, eliminates the development stage presentation and disclosure requirements
under ASC 915, and amends provisions of existing variable interest entity guidance under ASC 810. On June 10, 2014, The Financial Accounting
Standards Board ("FASB") issued Accounting Standards Update 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, There are several new accounting pronouncements
issued by the Financial Accounting Standards Board ("FASB") which are not yet effective. Each of these pronouncements,
as applicable, has been or will be adopted by the Company. As of June 30, 2016, none of these pronouncements is expected to have
a material effect on the financial position, results of operations or cash flows of the Company. |
