| Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The consolidated financial statements for Leader
Capital Holdings Corp. and its subsidiaries are prepared in accordance with accounting principles generally accepted in the United
States of America (“US GAAP”) and include the accounts of Leader Capital Holdings Corp. and its wholly owned subsidiaries,
Leader Financial Group Limited and JFB Internet Service Limited. Intercompany accounts and transactions have been eliminated in
consolidation. The Company has adopted August 31 as its fiscal year end. The summary
of significant accounting policies presented below is designed to assist in understanding the Company’s unaudited financial
statements. Such unaudited 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 unaudited financial statements. Certain
information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles
generally accepted in the United States of America (“U.S. GAAP”) were omitted pursuant to such rules and regulations.
The results for the nine months period ended May 31, 2019 are not necessarily indicative of the results to be expected for the
year ending August 31, 2019. Going Concern The accompanying financial statements have
been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments
in the normal course of business. As reflected in the accompanying financial statements, for the nine months ended May 31, 2019,
the Company incurred a net loss of $876,042 and used cash in operating activities of $309,511. These conditions raise substantial doubt about
the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company’s
profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities
arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments
to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should
the Company be unable to continue as a going concern. The Company expects to finance its operations
primarily through cash flow from revenue and continuing financial support from a shareholder. In the event that we require additional
funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic
objectives, the shareholder has indicated the intent and ability to provide additional financing. No assurance can be given that any future financing,
if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company
is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing,
or cause substantial dilution for its stock holders, in the case of equity financing. Use of estimates Management uses estimates and assumptions in
preparing these financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheets, and the reported revenue and
expenses during the periods reported. Actual results may differ from these estimates. Cash and cash equivalents Cash and cash equivalents are carried at cost
and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments
with an original maturity of three months or less as of the purchase date of such investments. Our cash and cash equivalent balance
is $151,289 and $839,323 as of May 31, 2019 and August 31,2018, respectively. Software Development Costs The Company expense software development costs,
including costs to develop software products or the software component of products to be marketed to external users, before technological
feasibility is reached. Technological feasibility is typically reached shortly before the release of such products and as a result,
The Company has issued 390,375 restricted common shares at $0.50 per share and incurred total costs of $195,188 for the first development
stage in the nine months ended May 31,2019. The Company expensed all $195,188 development costs in G&A expenses. We capitalize development costs related to
these software applications once the preliminary project stage is complete and it is probable that the project will be completed
and the software will be used to perform the function intended. The Company has issued 518,303 restricted common shares at $0.50
per share and incurred total costs of $259,152 for the second development stage in the nine months period ended May 31, 2019. The
second development stage is for basic set of the mobile application. The Company has expensed all $259,152 development costs for
the second development stage in G&A expenses. As of the reporting date, the second development stage is still under process
and thus the Company did not capitalize the cost of development. Revenue recognition The Company adopted Accounting Standards Codification
(“ASC”) 606. ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about
the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods
or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services
to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods
or services recognized as performance obligations are satisfied. The Company has assessed the impact of the
guidance by performing the following five steps analysis:
- Step 1: Identify the contract
- Step 2: Identify the performance obligations
- Step 3: Determine the transaction price
- Step 4: Allocate the transaction price
- Step 5: Recognize revenue The Company had net revenue of $0 for the nine
months period ended May 31,2019 and 2018, respectively. Other Income- Related Party Revenue from rental of leasehold land and buildings
are recognized on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken
possession or controls the physical use of the leased assets. The Company leases its commercial office in Taipei under non-cancelable
operating leases with terms of 31 months to a related party which is Greenpro LF Limited, a Seychelles company, owned by Mr. Lin
Yi-Hsiu, the director of the Company and Mr. Lee Chong Kuang. Plant and equipment 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:
Expected useful life
Furniture and fixture 3
Leasehold improvement 3 Intangible asset All of our intangible assets are subject to
amortization and are amortized using the straight-line method over their estimated period of benefit which is 5 years. The Company follows ASC Topic 350 in accounting
for intangible assets, which requires impairment losses to be recorded when indicators of impairment are present and the undiscounted
cash flows estimated to be generated by the assets are less than the assets’ carrying amounts. There was no impairment losses
recorded on intangible assets for the period ended May 31, 2019. 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 conducts major businesses in Hong
Kong. The Company is subject to tax in Hong Kong jurisdictions. As a result of its business activities, the Company will file tax
returns that are subject to examination by the Hong Kong tax authority. Loss per common share The Company calculates net income/(loss) per
share in accordance with ASC Topic 260, “Earnings per Share.” As of May 31, 2019, there are no outstanding dilutive securities.
For nine months ended March 31, 2019, the Company had net loss per common share, basic and diluted of $0.01 and $0.004, respectively. Foreign currencies translation Transactions denominated in currencies other
than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction.
Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional
currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the
statements of operations. The reporting currency of the Company and its
subsidiaries is United States Dollars (“US$”). It is also the functional currency as being the primary currency of
the economic environment in which the entity operates. 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 operating 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: cash and cash equivalents, prepayment, deposits, accounts payable and accrued liabilities and amount due to a director
approximate at their fair values because of the short-term nature of these financial instruments. The Company also follows the guidance of the
ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets
and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the
inputs used in measuring fair value as follows: Level 1 Level 2 Level 3: Recent accounting pronouncements In August 2018, the FASB issued ASU No. 2018-13,
Fair Value Measurement. The new guidance modifies disclosure requirements related to fair value measurement. The amendments in
this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation
on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also
allows for early adoption of any removed or modified disclosures upon issuance of this ASU while delaying adoption of the additional
disclosures until their effective date. ASU 2016-02, Leases (Topic 842). The standard
requires a lessee to recognize a liability to make lease payments and a right-of-use asset representing a right to use the underlying
asset for the lease term on the balance sheet. The ASU is effective for fiscal years, and interim periods within those years, beginning
after December 15, 2018, with early adoption permitted. We are currently evaluating the impact that this standard will have on
our consolidated financial statements. The Company has reviewed all recently issued,
but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected
to cause a material impact on its financial condition or the results of its operations. |
