| Nature of Operations and Summary of Significant Accounting Policies | Note 1. Nature of Operations and Summary
of Significant Accounting Policies Nature of Operations US EXP Group Inc. (the “Company”
or “we” or “us”) was incorporated in New York on December 9, 2016 and it was migrated to Nevada on June14,
2017. The Company is authorized to issue 500,000,000 shares of common stock (see note 6) with par value $0.0001. The Company will build www.PWORLD.net
(the “Website”), which aims at creating a platform for patients. The Website will provide a communication platform
for patients and medical professionals, provide information, digital entertainment, exhibit patients’ creative works, organize
events, and conduct fund raising. The Website will also provide an e-commerce function. Online advertisement will be its important
revenue source. Basis of Presentation The accompanying unaudited condensed financial
statements have been prepared in accordance with accounting principles generally accepted in the United States for interim information
Regulation S-K. Accordingly, they do not include all of the information and footnotes required by accounting principles generally
accepted in the United States for complete financial statements. In the opinion of management, all adjustments consisting of a
normal and recurring nature considered necessary for a fair presentation have been included. Operating results for the three-month
period ended March 31, 2017 may not necessarily be indicative of the results that may be expected for the year ending December
31, 2017. US EXP Group Inc. (Company) is a
business whose planned principal operations are the creation, operation, and maintenance of www.PWORLD.net (the
Website) that aims at creating a virtual patient world to provide humanistic and artistic concerns for patients through enriching
their lives by the online platform for communication among patients and medical professionals, the exhibition and auction of patients’
creative works, the publication of Patients’ Daily and Medical Daily, the services of wellness digital entertainment, e-commerce,
and advertising, which is driven by a series of events all year round. The presumption is that communication and
creative work can make patients’ life more enjoyable, hence to enhance spiritual and psychological recovery and improve quality
of life. The Company is currently conducting the design of the Website, the preparation of promotional events and related activities in
order to operationalize the online services. During the last year, the Company completed
the conceptual and technical design of the Website, which combines the classic theory of Hawthorne Effect, the function of artistic
creation, and the technology and service of Internet in order to produce a unique service model through the multiple language virtual
patients’ world PWORLD.net. The Company registered “www.PWORLD.net” as a pending trademark in international
classes of 41 and 42. The LOGO design has also finished. On March 3, 2017, the Company purchased a high school in Buffalo, NY as
the headquarter and events center of the Website. A Wellness Film Academy is under design based on the property. The building of
the Website is scheduled to be completed by June 28, 2017, the site technical support is GoDaddy, located in Arizona. February 18, 2017, the Wellness Film Festival,
the Wellness Game Platform, and the Wellness Painting and Photography Exhibition and Auction (P Mall) all are in the preparation.
We have a 20-member think tank in Buffalo, NY, including an economist, strategic consultant, business leadership lecturer, MBA,
medical doctor, acupuncturist, pharmacologist, film studio director, film producer and film festival organizer, photographer, professional
painter, professional writer, language scholar, professor in sociology, professor in communication, IT engineer and website builder,
marketing expert, social activist, CPA, and corporate lawyer. Those members have worked together for 2-6 years. Our core members
have organized an international patients’ team to endorse the Website. We are going to find some advertisers to support our
events. The Company also is in the process of raising additional equity capital to support the completion of its development activities
to provide the services as soon as possible. The Company’s activities are subject to significant risks and
uncertainties, including failing to secure additional funding to operationalize the website before another company develops
a similar business model. Use of Estimates The preparation of financial statements
in conformity with GAAP 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 condensed financial statements, and the reported amounts
of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Property and Equipment Property and equipment is recorded at
cost and depreciated or amortized using the straight-line method over the estimated useful life of the asset. Cash and Cash Equivalents Cash and cash equivalents include cash
on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of
90 days or less. Revenue Recognition Revenue is recognized when all four of
the following criteria are met: (i) persuasive evidence that an arrangement exists (sales agreements and customer purchase orders
are used to determine the existence of an arrangement); (ii) delivery of goods has occurred and risks and benefits of ownership
have been transferred, which is when the goods are received by the customer at its designated location in accordance with the sales
terms; (iii) the sales price is both fixed and determinable, and (iv) collectability is reasonably assured. Concentration As of March 31, 2017, the Company was
dependent on its CEO and principal shareholder to provide financing for operations. Advertising Advertising revenues are derived principally
from online advertising and marketing, including display advertising and promoted marketing, and, to a lesser extent, sponsorship
arrangements. The arrangements are evidenced by either
online acceptance of terms and conditions or contracts that stipulate the types of advertising to be delivered, the timing and
the pricing. Display advertising arrangements allow advertisers to place advertisements on particular areas of the Company’s
websites or platform, in particular formats and over particular periods of time. Advertising revenues from display advertising
arrangements are recognized ratably over the contract period of display, when the collectability is reasonably assured. The Company
enters into cost per day (“CPD”) advertising arrangements with customers, under which the Company recognizes revenues
ratably over the contract period. The Company also enters into cost per mille (“CPM”), or cost per thousand impressions,
advertising arrangements with the customers, under which the Company recognizes revenues based on the number of times that the
advertisement has been displayed. Promoted marketing arrangements are primarily
priced based on CPM or cost per engagement (“CPE”). An engagement may include when a user clicks on a link, becomes
a follower of the marketing customer account, shares the promoted feed or marks the feed as a favorite. Under the CPM model, customers
are obligated to pay when the advertisement is displayed, while under the CPE model, customers are obligated to pay based on the
number of engagements with the marketing feed. Sponsorship arrangements allow advertisers
to sponsor a particular area on its websites in exchange for a fixed payment over the contract period. Advertising revenues from
sponsorship are recognized ratably over the contract period. Advertising revenues derived from the design, coordination and integration
of online advertising and sponsorship arrangements to be placed on the Company’s websites are recognized ratably over the
term of such arrangements. For advertising revenue arrangements where
we are not the primary obligor, we recognize revenue on a net basis. Payments and Other Fees We enable Payments from people to purchase
physical, virtual and digital goods from our developers. People can transact and make payments on the Website by using debit cards
and credit cards, PayPal, mobile phone payments, gift cards, or other methods. When a person engages in a payment transaction
for the purchase of a physical, virtual or digital good from a seller, we remit to the seller an amount that is based on the total
amount of the transaction less the processing fee that we charge the seller. The price of the purchase is an amount that is solely
determined by the seller. Our revenue is the net amount of the transaction, representing our processing fee for the service performed.
We record revenue on a net basis as we do not consider ourselves to be the principal in the sale of the physical or virtual or
digital good to the person. Additionally, we record all Payments revenue at the time of the purchase of the related virtual goods,
net of estimated refunds or chargebacks. Other fees, which includes the delivery
of virtual reality platform devices and related platform sales, and our ad serving and measurement products, were not material
in all periods presented in our financial statements. Revenue is recognized net of applicable
sales and other taxes. Cost of Revenue Our cost of revenue consists primarily
of expenses associated with the delivery and distribution of our products. These include expenses related to the operation of our
data centers, such as facility and server equipment depreciation, salaries, benefits, and share-based compensation for employees
on our operations teams, and energy and bandwidth costs. Cost of revenue also includes credit card and other transaction fees related
to processing customer transactions, amortization of intangible assets, costs associated with data partner arrangements, and cost
of virtual reality platform device inventory sold. Income Taxes Under ASC 740, “Income Taxes,”
deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between
the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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. Valuation allowances are established when it is more likely than not that
some or all of the deferred tax assets will not be realized. As of March 31, 2017, there were no deferred taxes due to the uncertainty
of the realization of net operating loss or carry forward prior to expiration. Loss Per Common Share Basic loss per common share excludes dilution
and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss
per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised
or converted into common stock or resulted in the issuance of common stock that then shared in the loss of the entity. As of March
31, 2017, there are no outstanding dilutive securities. Fair Value of Financial Instruments The Company follows guidance for accounting
for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items
that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted
guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial
statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs
(Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted)
in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted
prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs
for the asset or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the
short maturity of these instruments. Recent Accounting Pronouncements On November 20, 2015, FASB issued ASU-2015-17-Income
Taxes. The Board is issuing this Update as part of its initiative to reduce complexity in accounting standards (the Simplification
Initiative). The objective of the Simplification Initiative is to identify, evaluate, and improve areas of generally accepted accounting
principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information
provided to users of financial statements. Current GAAP requires an entity to separate deferred income tax liabilities and assets
into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income
taxes, the amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified
statement of financial position. The amendments in this Update apply to all entities that present a classified statement of financial
position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and
presented as a single amount is not affected by the amendments in this Update. For public business entities, the amendments in
this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods
within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting
period. The Company is still in the process of evaluating future impact of adopting this standard. Management believes that the
impact of this ASU to the Company’s financial statements would be insignificant. In August 2016, the FASB issued ASU No.
2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity
in how certain cash receipts and cash payments are presented and classified in the statement of cash flows”. The amendments
provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement
of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the
Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4)Proceeds
from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including
Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization
Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective
for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years.
Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition
method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments
for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact
of this new standard on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16,
“Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory”, which requires the recognition of
the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-06
will be effective for the Company in its first quarter of 2019. The Company is currently evaluating the impact of adopting ASU
2016-16 on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-17,
“Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control”. The amendments affect
reporting entities that are required to evaluate whether they should consolidate a variable interest entity in certain situations
involving entities under common control. Specifically, the amendments change the evaluation of whether a reporting entity is the
primary beneficiary of a variable interest entity by changing how a reporting entity that is a single decision maker of a variable
interest entity treats indirect interests in the entity held through related parties that are under common control with the reporting
entity. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including
interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this
new standard on its consolidated financial statements and related disclosures. Management does not believe that any other
recently issued, but not yet effective accounting standards if currently adopted would have a material effect on the accompanying
financial statements. | Note 1. Nature of Operations and Summary
of Significant Accounting Policies Nature of Operations US EXP Group Inc. (the “Company”
or “we” or “us”) was incorporated in New York on December 9, 2016. The Company is authorized to issue 500,000,000
shares of common stock, with par value $0.0001. The Company will build www.PWORLD.net
(the “Website”), which aims at creating a platform for patients. The Website will provide a communication platform
for patients and medical professionals, provide information, digital entertainment, exhibit patients’ creative works, organize
events, and conduct fund raising. The Website will also provide an e-commerce function. Online advertisement will be its important
revenue source. Basis of Presentation The summary of significant accounting
policies presented below is designed to assist in understanding the Company’s financial statements. Such financial statements
and accompanying notes are the representations of the Company’s management, who are responsible for their integrity and objectivity.
These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”)
in all material respects, and have been consistently applied in preparing the accompanying financial statements. US EXP Group Inc. (Company) is a
business whose planned principal operations are the creation, operation, and maintenance of www.PWORLD.net (the
Website) that aims at creating a virtual patient world to provide humanistic and artistic concerns for patients through enriching
their lives by the online platform for communication among patients and medical professionals, the exhibition and auction of patients’
creative works, the publication of Patients’ Daily and Medical Daily, the services of wellness digital entertainment, e-commerce,
and advertising, which is driven by a series of events all year round. The presumption is that communication and
creative work can make patients’ life more enjoyable, hence to enhance spiritual and psychological recovery and improve quality
of life. The Company is currently conducting the design of the Website, the preparation of promotional events and related activities in
order to operationalize the online services. During the last year, the Company completed
the conceptual and technical design of the Website, which combines the classic theory of Hawthorne Effect, the function of artistic
creation, and the technology and service of Internet in order to produce a unique service model through the multiple language virtual
patients’ world PWORLD.net. The Company registered “www.PWORLD.net” as a pending trademark in international
classes of 41 and 42. The LOGO design has also finished. On March 3, 2017, the Company purchased a high school in Buffalo, NY as
the headquarter and events center of the Website. A Wellness Film Academy is under design based on the property. The building of
the Website is going to be completed by May 10, 2017, the site technical support is Godaddy, located in Arizona. February 18, 2017, the Wellness Film Festival,
the Wellness Game Platform, and the Wellness Painting and Photography Exhibition and Auction (P Mall) all are in the preparation.
We have a 20-member think tank in Buffalo, NY, including an economist, strategic consultant, business leadership lecturer, MBA,
medical doctor, acupuncturist, pharmacologist, film studio director, film producer and film festival organizer, photographer, professional
painter, professional writer, language scholar, professor in sociology, professor in communication, IT engineer and website builder,
marketing expert, social activist, CPA, and corporate lawyer. Those members have worked together for 2-6 years. Our core members
have organized an international patients’ team to endorse the Website. We are going to find some advertisers to support our
events. The Company also is in the process of raising additional equity capital to support the completion of its development activities
to provide the services as soon as possible. The Company’s activities are subject to significant risks and
uncertainties, including failing to secure additional funding to operationalize the website before another company develops
similar business model. Use of Estimates The preparation of financial statements
in conformity with GAAP 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 condensed financial statements, and the reported amounts
of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash
on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of
90 days or less. Revenue Recognition Revenue is recognized when all four of
the following criteria are met: (i) persuasive evidence that an arrangement exists (sales agreements and customer purchase orders
are used to determine the existence of an arrangement); (ii) delivery of goods has occurred and risks and benefits of ownership
have been transferred, which is when the goods are received by the customer at its designated location in accordance with the sales
terms; (iii) the sales price is both fixed and determinable, and (iv) collectability is reasonably assured. Concentration During 2016, the Company was dependent
on its CEO and principal shareholder to provide financing for operations. Advertising Advertising revenues are derived principally
from online advertising and marketing, including display advertising and promoted marketing, and, to a lesser extent, sponsorship
arrangements. The arrangements are evidenced by either
online acceptance of terms and conditions or contracts that stipulate the types of advertising to be delivered, the timing and
the pricing. Display advertising arrangements allow advertisers to place advertisements on particular areas of the Company’s
websites or platform, in particular formats and over particular periods of time. Advertising revenues from display advertising
arrangements are recognized ratably over the contract period of display, when the collectability is reasonably assured. The Company
enters into cost per day (“CPD”) advertising arrangements with customers, under which the Company recognizes revenues
ratably over the contract period. The Company also enters into cost per mille (“CPM”), or cost per thousand impressions,
advertising arrangements with the customers, under which the Company recognizes revenues based on the number of times that the
advertisement has been displayed. Promoted marketing arrangements are primarily
priced based on CPM or cost per engagement (“CPE”). An engagement may include when a user clicks on a link, becomes
a follower of the marketing customer account, shares the promoted feed or marks the feed as a favorite. Under the CPM model, customers
are obligated to pay when the advertisement is displayed, while under the CPE model, customers are obligated to pay based on the
number of engagements with the marketing feed. Sponsorship arrangements allow advertisers
to sponsor a particular area on its websites in exchange for a fixed payment over the contract period. Advertising revenues from
sponsorship are recognized ratably over the contract period. Advertising revenues derived from the design, coordination and integration
of online advertising and sponsorship arrangements to be placed on the Company’s websites are recognized ratably over the
term of such arrangements. For advertising revenue arrangements where
we are not the primary obligor, we recognize revenue on a net basis. Payments and Other Fees We enable Payments from people to purchase
physical, virtual and digital goods from our developers. People can transact and make payments on the Website by using debit cards
and credit cards, PayPal, mobile phone payments, gift cards, or other methods. When a person engages in a payment transaction
for the purchase of a physical, virtual or digital good from a seller, we remit to the seller an amount that is based on the total
amount of the transaction less the processing fee that we charge the seller. The price of the purchase is an amount that is solely
determined by the seller. Our revenue is the net amount of the transaction, representing our processing fee for the service performed.
We record revenue on a net basis as we do not consider ourselves to be the principal in the sale of the physical or virtual or
digital good to the person. Additionally, we record all Payments revenue at the time of the purchase of the related virtual goods,
net of estimated refunds or chargebacks. Other fees, which includes the delivery
of virtual reality platform devices and related platform sales, and our ad serving and measurement products, were not material
in all periods presented in our financial statements. Revenue is recognized net of applicable
sales and other taxes. Cost of Revenue Our cost of revenue consists primarily
of expenses associated with the delivery and distribution of our products. These include expenses related to the operation of our
data centers, such as facility and server equipment depreciation, salaries, benefits, and share-based compensation for employees
on our operations teams, and energy and bandwidth costs. Cost of revenue also includes credit card and other transaction fees related
to processing customer transactions, amortization of intangible assets, costs associated with data partner arrangements, and cost
of virtual reality platform device inventory sold. Income Taxes Under ASC 740, “Income Taxes,”
deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between
the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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. Valuation allowances are established when it is more likely than not that
some or all of the deferred tax assets will not be realized. As of December 31, 2016 there were no deferred taxes due to the uncertainty
of the realization of net operating loss or carry forward prior to expiration. The Company’s income tax expense
differed from the statutory rates (federal 34% and state 6.5%) as follows:
December 31, 2016
Expected tax expense (benefit) – Federal $ (1,588 )
Expected tax expense (benefit) – State (200 )
Change in valuation allowance 1,788
Provision for income taxes (benefit) $ — The net deferred income taxes in the accompanying
balance sheet include the following amounts of deferred tax assets and liabilities:
Gross Deferred tax assets:
Net operating loss carryforwards $ (1,788 )
Total deferred tax assets 1,788
Less: valuation allowance (1,788 )
Net deferred tax asset recorded $ — As of December 31, 2016, the Company has
a net operating loss carry forward of approximately $4,670 available to offset future taxable income through December 31, 2036.
The valuation allowance was established to reduce the deferred tax asset to the amount that will more likely than not be realized.
This is necessary due to the Company’s continued operating loss and the uncertainty of the Company’s ability to utilize
all of the net operating loss carryforwards before they will expire through the year 2036. The net change in the valuation allowance
for the period ended December 31, 2016 was an increase of $1,788. The company’s federal income tax
returns for the period ended December 31, 2016 remain subject to examination by the Internal Revenue Service and State Tax Authorities
through 2021. Loss Per Common Share Basic loss per common share excludes dilution
and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss
per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised
or converted into common stock or resulted in the issuance of common stock that then shared in the loss of the entity. As of December
31, 2016, there are no outstanding dilutive securities. Fair Value of Financial Instruments The Company follows guidance for accounting
for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items
that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted
guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial
statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs
(Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted)
in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted
prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs
for the asset or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the
short maturity of these instruments. Recent Accounting Pronouncements On November 20, 2015, FASB issued ASU-2015-17-Income
Taxes. The Board is issuing this Update as part of its initiative to reduce complexity in accounting standards (the Simplification
Initiative). The objective of the Simplification Initiative is to identify, evaluate, and improve areas of generally accepted accounting
principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information
provided to users of financial statements. Current GAAP requires an entity to separate deferred income tax liabilities and assets
into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income
taxes, the amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified
statement of financial position. The amendments in this Update apply to all entities that present a classified statement of financial
position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and
presented as a single amount is not affected by the amendments in this Update. For public business entities, the amendments in
this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods
within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting
period. The Company is still in the process of evaluating future impact of adopting this standard. Management believes that the
impact of this ASU to the Company’s financial statements would be insignificant. In August 2016, the FASB issued ASU No.
2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity
in how certain cash receipts and cash payments are presented and classified in the statement of cash flows”. The amendments
provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement
of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the
Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4)Proceeds
from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including
Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization
Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective
for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years.
Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition
method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments
for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact
of this new standard on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16,
“Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory”, which requires the recognition of
the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-06
will be effective for the Company in its first quarter of 2019. The Company is currently evaluating the impact of adopting ASU
2016-16 on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-17,
“Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control”. The amendments affect
reporting entities that are required to evaluate whether they should consolidate a variable interest entity in certain situations
involving entities under common control. Specifically, the amendments change the evaluation of whether a reporting entity is the
primary beneficiary of a variable interest entity by changing how a reporting entity that is a single decision maker of a variable
interest entity treats indirect interests in the entity held through related parties that are under common control with the reporting
entity. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including
interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this
new standard on its consolidated financial statements and related disclosures. Management does not believe that any other
recently issued, but not yet effective accounting standards if currently adopted would have a material effect on the accompanying
financial statements. |
