| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE-3 SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES The accompanying condensed consolidated financial
statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying
condensed consolidated financial statements and notes.
Use
of estimates In preparing these condensed 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.
Basis
of consolidation The condensed consolidated financial statements
include the financial statements of VIVC and its subsidiaries. All significant inter-company balances and transactions within
the Company have been eliminated upon consolidation.
Cash
and cash equivalents Cash and cash equivalents consist primarily
of cash in readily available checking and saving accounts. Cash equivalents consist of highly liquid investments that are readily
convertible to cash and that mature within three months or less from the date of purchase. The carrying amounts approximate fair
value due to the short maturities of these instruments.
Accounts
receivable Accounts receivable are recorded at the invoiced
amount and do not bear interest, which are due within contractual payment terms, generally 30 to 90 days from completion of service.
Credit is extended based on evaluation of a customer's financial condition, the customer credit-worthiness and their payment history.
Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due balances over 90 days
and over a specified amount are reviewed individually for collectibility. At the end of fiscal year, the Company specifically
evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor the
progress of the collection of accounts receivables. The Company will consider the allowance for doubtful accounts for any estimated
losses resulting from the inability of its customers to make required payments. For the receivables that are past due or not being
paid according to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal
resolution in a court of law. Account balances are charged off against the allowance after all means of collection have been exhausted
and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to
its customers. As of September 30, 2019, there was no allowance for doubtful accounts.
Revenue
recognition Since January 1, 2018, the Company adopted
Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers Under ASU 2014-09, the Company recognizes
revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration
the Company expects to be entitled to in exchange for those goods or services. The Company recognized revenue in the amount
of $99,000 and $$424,975for consulting service for the three and nine months ended September 30, 2019. The Company did not recognize any revenue
for the three and nine months ended September 30, 2018.
Comprehensive
income ASC Topic 220, “ Comprehensive Income
Income
taxes Income taxes are determined in accordance
with the provisions of ASC Topic 740, “ Income Taxes 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 three and nine months ended September
30, 2019 and 2018, the Company did not have any interest and penalties associated with tax positions. As of September 30, 2019,
the Company did not have any significant unrecognized uncertain tax positions. The Company is subject to tax in local and
foreign jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by
the relevant tax authorities.
Net
income (loss) per share The Company calculates net loss per share
in accordance with ASC Topic 260, “ Earnings per Share
Foreign
currencies 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 reporting currency of the Company is the
United States Dollar ("US$"). The Company's subsidiary in Hong Kong maintain their books and records in their local currency,
Hong Kong Dollars ("HK$"), which is the functional currency as being the primary currency of the economic environment
in which these entities operate. Convenience translation of amounts from the
local currency of the Company into US$ has been made at the pegged exchange rate at 0.129 for the respective periods. In general, for consolidation purposes, assets
and liabilities of its subsidiary whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic
830-30, “ Translation of Financial Statement
Related
parties Parties, which can be a corporation or individual,
are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant
influence over the other party in making financial and operational decisions. Companies are also considered to be related if they
are subject to common control or common significant influence.
Fair
value of financial instruments The carrying value of the Company’s
financial instruments (excluding short-term bank borrowing and note payable): cash and cash equivalents, accounts and retention
receivable, prepayments and other receivables, accounts payable, income tax 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. Management believes, based on the current
market prices or interest rates for similar debt instruments, the fair value of note payable approximate the carrying amount. The Company also follows the guidance of the
ASC Topic 820-10, “ Fair Value Measurements and Disclosures
Level 1
Level 2 :
Level 3 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.
Recent
Accounting Pronouncements In February 2016, the Financial Accounting
Standard Board (“FASB”) issued Accounting Standards Update (ASU) No. 2016-02, Leases In August 2017, the FASB issued ASU No. 2017-12,
Derivatives and Hedging In June 2016, the FASB issued ASU No. 2016-13,
Financial Instruments – Credit Losses In January 2017, the FASB issued ASU No. 2017-04,
Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU No. 2018-13, Fair
Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-15,
Intangibles - Goodwill and Other – Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred
in a Cloud Computing Arrangement that is a Service Contract |
