| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE－2 SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES These accompanying consolidated financial statements
reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated
financial statements and notes.
Basis
of presentation These accompanying consolidated financial statements
have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”).
Use
of estimates In preparing these 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 period/years reported. Actual results may differ from these estimates.
Risks
and uncertainties
(1) The Company’s auditors have issued a going concern opinion.
This means that there is substantial doubt that the Companycan continue as an ongoing business for the next twelve months if the Companydoes
not generate more revenues or obtain more funds for itsbusiness operations. There is no assurance that the Companycan generate more revenues
or obtain more investments.
(2) The Company faces strong competition from well-established companies
and small independent companies. The Company will be at a competitive disadvantage in obtaining the facilities, employees, financing
and other resources required to provide itsservices and products to customers. The Company’sopportunity to obtain customers may
be limited by itsfinancial resources and other assets.
(3) The Company relies on the health and growth of the tourism industry.
Tourism is highly sensitive to business and personal discretionary spending levels, and thus tends to decline during general economic
downturns. In addition, other adverse trends or events that tend to reduce tourism are likely to reduce our revenues. Also, due to the
nature of its business, the Companymay be subject to liability claims arising out of accidents or disasters causing injury to itscustomers,
including claims for serious personal injury or death. There can be no assurance that the Companywill be able to obtain sufficient insurance
coverage at acceptable premium levels in the future. Successful assertion againstone or a series of large uninsured claims, or of one
or a series of claims exceeding our insurance, could adversely affect itsbusiness, financial condition and results of operations.
(4) The Company has a trademark in China and will continue the process
of applying trademarks in Taiwan and US. There is no assurance that the trademark registration can be obtained timely.
(5) The Company is unable to afford establishing an audit committee
due to limited operations and lack of revenue.
(6) As a Nevada corporation, the Company plans to be able to carry
out business in the United States eventually. However, currently we don’t have any substantial asset in the U.S. and we may not
be able to own any substantial asset in the near future. Lack of substantial assets will make it difficult for us to launch business
operations and cause delay to the execution of our business plans in the U.S.
(7) The Company has not used a private placement memorandum, a registered
stock offering or any other type of formal disclosure connected with prior sales of securities. Therefore, there is risk that investors
might seek to reverse prior purchase transactions and ask for a return of their money.
Basis
of consolidation The 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.
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 December 31, 2020 and 2019, there was no
allowance for doubtful accounts.
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.
Property,
plant and equipment Property, plant and equipment are stated at cost
less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the
following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual
values:
Expected
useful life
Service yacht 10 years
Motor vehicle 5 years
Office equipment 5 years Expenditure for repairs and maintenance is expensed
as incurred. When assets have retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting
gain or loss is recognized in the results of operations.
Revenue
recognition 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 derives its revenues from the sale and
rendering of yacht services and recognizes in full upon completion of delivery to the receiver’s location or services to the customers.
The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills
its obligations under each of its agreements:
• identify the contract with a customer;
• identify the performance obligations in the contract;
• determine the transaction price;
• allocate the transaction price to performance obligations in
the contract; and
• recognize revenue as the performance obligation is satisfied.
Comprehensive
income ASC Topic 220, “Comprehensive Income”,
establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income
as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented
in the accompanying consolidated statement of shareholders’ equity, consists of changes in unrealized gains and losses on foreign
currency translation. This comprehensive income is not included in the computation of income tax expense or benefit.
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. 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.
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 consolidated statement
of operations. The reporting currency of the Company is United States
Dollar ("US$") and the accompanying consolidated financial statements have been expressed in US$. In addition, the Company
and subsidiaries are operating in PRC, Hong Kong and Taiwan maintain their books and record in their local currency, Renminbi (“RMB”),
Hong Kong dollars (“HK$”) and Taiwanese dollars (“TWD”), which is a functional currency as being the primary
currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities
of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation
of Financial Statement Translation of amounts from RMB and HK$ into US$
has been made at the following exchange rates for the year ended December 31, 2020, the period ended December 31, 2019 and the year ended
April 30, 2019:
December 31, April 30,
2020 2019 2019
Year/Period-end RMB:US$ exchange rate 6.5276 6.9668 6.9668
Annual/Period averageRMB:US$exchange rate 6.9001 6.9072 6.9668
Year/Period-end HK$:US$ exchange rate 7.7525 7.7872 7.7872
Annual/Period averageHK$:US$exchange rate 7.7557 7.8346 7.8346
Year/Period-end TWD:US$ exchange rate 28.0772 29.9724
Annual/Period averageTWD:US$exchange rate 29.4418 30.9120
Lease At the inception of an arrangement, the Company determines
whether the arrangement is or contains a lease based on the unique facts and circumstances present. Leases with a term greater than one
year are recognized on the balance sheet as right-of-use assets, lease liabilities and long-term lease liabilities. The Company has elected
not to recognize on the balance sheet leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use
assets are recorded based on the present value of lease payments over the expected remaining lease term. However, certain adjustments
to the right-of-use asset may be required for items such as prepaid or accrued lease payments. The interest rate implicit in lease contracts
is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred
to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. In accordance with the guidance in ASC 842, components
of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area
maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance
fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values
to the lease components and non-lease components. The Company made the policy election to not separate
lease and non-lease components. Each lease component and the related non-lease components are accounted for together as a single component.
Noncontrolling
interest The Company accounts for noncontrolling interest
in accordance with ASC Topic 810-10-45, which requires the Company to present noncontrolling interests as a separate component of total
shareholders’ equity on the consolidated balance sheets and the consolidated net loss attributable to the its noncontrolling interest
be clearly identified and presented on the face of the consolidated statements of operations and comprehensive loss.
Retirement
plan costs Contributions to retirement plans (which are defined
contribution plans) are charged to general and administrative expenses in the accompanying statements of operation as the related employee
service is provided.
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.
Concentrations
and Credit Risk The Company’s principal financial instruments
subject to potential concentration of credit risk are cash and cash equivalents, including amounts held in money market accounts. The
Company places cash deposits with a federally insured financial institution. The Company maintains its cash at banks and financial institutions
it considers to be of high credit quality; however, the Company’s domestic cash deposits may at times exceed the Federal Deposit
Insurance Corporation’s insured limit. Balances in excess of federally insured limitations may not be insured. The Company has
not experienced losses on these accounts, and management believes that the Company is not exposed to significant risks on such accounts.
Fair
value of financial instruments The carrying value of the Company’s financial
instruments (excludingfinance lease): cash and cash equivalents, accounts receivable, amount due to a related party, 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 payableapproximate 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 June 2016, the Financial Accounting Standards
Board (“FASB”) issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit
Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments
- Credit Losses Codification Improvements
to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments inancial
Instruments - Credit Losses (Topic 326): Targeted Transition Relief Codification Improvements to Topic 326, Financial Instruments - Credit Losses 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 (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement In December 2019, the FASB issued ASU No 2019-12,
“ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In March 2020, the FASB issued ASU 2020-03, “ Codification
Improvements to Financial Instruments In March 2020, the FASB issued ASU No 2020-04, “ Reference
Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
