| Significant Accounting Policies | NOTE 2 - SIGNIFICANT ACCOUNTING
POLICIES PRINCIPLES
OF CONSOLIDATION The consolidated financial statements include
the accounts of the Company and of its wholly-owned subsidiary, Photozou Koukoku. Intercompany transactions are eliminated. USE OF ESTIMATES The presentation 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 disclosures of contingent assets and liabilities as of the date of the financial
statements and the reported amounts of revenue and expenses during the reporting periods. The most significant estimates and assumptions
made by management include going concern, allowance for doubtful accounts, valuation allowance on deferred income tax, inventory
obsolescence and sales allowance. Since early 2020, the global outbreak of the coronavirus disease 2019 (“COVID-19”)
has significantly affected the economy in Japan, where the Company mainly operates its business. The extent to which the COVID-19
pandemic may directly or indirectly impact our business, financial condition, and results of operations is highly uncertain and
subject to change. We considered the potential impact of the COVID-19 pandemic on our estimates and assumptions and there was not
a material impact to our consolidated financial statements as of November 30, 2020 and for the year then ended. Operating results
in the future could vary from the amounts derived from management's estimates and assumptions. RELATED PARTY TRANSACTION The Company accounts for related party transactions
in accordance with ASC 850 ("Related Party Disclosures"). A related party is generally defined as (i) any person that
holds 10% or more of the Company's securities and their immediate families, (ii) the Company's management, (iii) someone that directly
or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence
the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there
is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the
ordinary course of business. 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. 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. ACCOUNTS RECEIVABLE AND CREDIT POLICIES Accounts receivable are recognized and carried
at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection
of the full amount is no longer probable. Bad debts are written off as incurred. If there is a claim for a defect of product after
within four days after arrival of goods, the Company shall accept a goods return. INVENTORY Inventory, consisting of used cameras, are
primarily accounted for using the specific identification method, and are valued at the lower of cost or net realizable value.
This valuation requires the Company to make judgments, based on currently-available information, about the likely method of disposition,
such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of
each disposition category. As of November 30, 2020 and 2019, the Company
held inventory comprised solely of used cameras and parts in the amount of $35,484 and $69,142. SOFTWARE The Company capitalizes certain costs related
to obtaining or developing computer software for internal use. Costs incurred during the application development stage internally
or externally are capitalized and amortized on a straight-line basis over the expected useful life of two to five years since the
computer software is ready for its intended use. The application development stage includes design of chosen path, software configuration
and integration, coding, hardware installation and testing. Costs incurred during the preliminary project stage and post implementation-operation
stage are expensed as incurred. IMPAIRMENT OF LONG-LIVED ASSETS In accordance with ASC Topic 360, the Company
reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets
may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted
future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between
the asset’s estimated fair value and its book value. For the years ended November 30, 2020 and 2019, the Company did not
record any impairment charges on long-lived assets. FOREIGN CURRENCY TRANSLATION The Company maintains its books and record
in its local currency, Japanese YEN (“JPY”), which is a functional currency as being the primary currency of the economic
environment in which its operation is conducted. 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 statements of operations. The reporting currency of the Company is the
United States Dollars (“US$”) and the accompanying consolidated financial statements have been expressed in US$. In
accordance with ASC Topic 830-30, “Translation of Financial Statement”, assets and liabilities of the Company whose
functional currency is not US$ are translated into US$, 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
are recorded as a separate component of accumulated other comprehensive loss within the statements of shareholders’ equity. Translation of amounts from the local currency
of the Company into US$1 has been made at the following exchange rates:
November 30, 2020 November 30, 2019
Current JPY: US$1 exchange rate 104.27 109.51
Average JPY: US$1 exchange rate 107.22 109.27 COMPREHENSIVE INCOME OR LOSS ASC Topic 220, “Comprehensive Income”,
establishes standards for reporting and display of comprehensive income or loss, its components and accumulated balances. Comprehensive
income or loss as defined includes all changes in equity during a period from non-owner sources. Accumulated comprehensive loss,
as presented in the accompanying consolidated statements of changes in shareholders’ deficit consists of changes in unrealized
gains and losses on foreign currency translation. REVENUE RECOGNITION AND
DEFERRED REVENUE The Company recognize its revenue in accordance
with ASC 606 - Revenue from contracts with Customers. To determine revenue recognition for agreements within the scope of ASC 606,
the Company performs the following five steps: (1) identify the contract with a customer; (2) identify the performance obligations
in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the
contract; and (5) recognize revenue when each performance obligation is satisfied. Revenue for used cameras sold is recognized
at a point in time when the cameras are delivered to the customer. Service revenue is recognized over time when the services are
provided to the customers. Deferred revenue is recorded when consideration
is received from a customer prior to the goods or services were delivered. As of November 30, 2020 and 2019, the Company's deferred
revenue was $2,302 and nil, respectively. Disaggregated revenue of the Company is as
follows:
For the year Percentage of For the year Percentage of
ended total revenues ended total revenues
November 30, 2020 November 30, 2019
Revenue from cameras sold $ 183,927 90.2% 275,587 93.1%
Service revenue 19,889 9.8% 20,374 6.9%
Total 203,816 100% 295,961 100% NET
LOSS PER COMMON SHARE Net income per common share is computed pursuant
to section 260-10-45 of the FASB Accounting Standards Codification. Basic net loss per share is computed by dividing net loss by
the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by
dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during
each period. There were no potentially dilutive shares outstanding as of November 30, 2020 and 2019. INCOME TAX The Company follows Section 740-10-30 of the
FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future
tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax
assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using
enacted tax rates in effect for the year in which the differences are expected to reverse. 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. 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 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. CONCENTRATION OF CREDIT RISKS Financial instruments that potentially expose
the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company
places its cash and cash equivalents with financial institutions. The Company does not require collateral or other security to
support financial instruments subject to credit risks. With respect to trade receivables, the Company routinely assesses the financial
strength of its customers and, as a consequence, believes that the receivable credit risk exposure is limited. RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the Financial Accounting
Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)”
and issued subsequent amendments to the initial guidance or implementation guidance including ASU 2017-13, 2018-01, 2018-10, 2018-11,
2018-20 and 2019-01 (collectively, including ASU 2016-02, “ASC 842”). Under ASC 842, lessees will be required to recognize
all leases at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising
from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s
right to use, or control the use of, a specified asset for the lease term. The Company adopted the standard on December
1, 2019 on a modified retrospective basis and did not restate comparable periods. The Company elected the package of practical
expedients permitted under the transition guidance, which allows the Company to carry forward the historical lease classification,
the assessment whether a contract is or contains a lease and initial direct costs for any leases that exist prior to adoption of
the new standard. The Company also elected the practical expedient not to separate lease and non-lease components for certain classes
of underlying assets and the short-term lease exemption for contracts with lease terms of 12 months or less. The Company does not
have any operating lease over 12 months. The adoption of this standard did not impact the Company’s consolidated financial
statements. In June 2016, the FASB issued ASU 2016-13 "Financial
Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments." ASU 2016-13 requires an entity
to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate its lifetime "expected
credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the
net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of
credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale
debt securities. ASU 2016-13 is effective for smaller reporting companies for annual periods beginning after December 15, 2022,
including interim periods within those fiscal years. Entities will apply the standard's provisions as a cumulative-effect adjustment
to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is in the
process of evaluating the impact of the adoption of ASU 2016-13 on the Company's financial statements and disclosures. In December 2019, the FASB issued ASU 2019-12:
Simplifying the Accounting for Income Taxes (Topic 740), which removes certain exceptions to the general principles in Topic 740
and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance.
ASU 2019-12 is effective for public entities for annual reporting periods and interim periods within those years beginning after
December 15, 2020, and early adoption is permitted. The Company is evaluating the effect of adopting this new accounting guidance
but does not expect adoption will have a material impact on the Company's disclosures. |
