| Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The financial statements for Leader Hill Corporation
for the period from December 1, 2017 to May 31, 2018 are prepared in accordance with accounting principles generally accepted in
the United States of America (“US GAAP”). The Company has adopted November 30 as its fiscal year end. 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. Revenue from services Revenue and expenses are deferred until the
performance obligation is complete and collectability of the consideration is probable. For service contracts where the performance
obligation is not completed, deferred costs of revenue are recorded as incurred and deferred revenue is recorded for any payments
received on such yet to be completed performance obligations. On an ongoing basis, management monitors these contracts for profitability
and when needed may record a liability if a determination is made that costs will exceed revenue. General and administrative expenses From December 1, 2017 to May 31, 2018, we had
general and administrative expenses in the amount $10,373, which was primarily legal and professional charge, audit fee, taxation
service fee, travelling and accommodation expenses, web expenses and depreciation. From March 1,
2018 to May 31, 2018 , we have had general and administrative
expenses in the amount of $724, which was primarily company incorporation fees, audit fee, travelling and accommodation expenses,
entertainment expenses and professional fees. 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 equivalents is
$4,355 as of May 31, 2018. Our cash and cash equivalents is nil as of November 30, 2017. Deferred Revenue For service contracts where the performance
obligation is not completed, deferred revenue is recorded for any payments received in advance of the performance obligation. Changes
in deferred revenue were as follows: Deferred Costs of Revenue For service contracts where the performance
obligation is not completed, deferred costs of revenue are recoded for any costs incurred in advance of the performance obligation. Deferred revenue and deferred costs of revenue
at May 31, 2018 and November 30, 2017 are classified as current assets or current liabilities and totaled:
As of May 31, 2018
As of November 30, 2017
(Unaudited)
Deferred revenue $ 2,800 $ -
Deferred costs of revenue - - Accounts receivable Accounts receivable are recorded at the invoiced
amount less an allowance for any uncollectible accounts and do not bear interest, which are due on demand. Management reviews the
adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables.
Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic
conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance
after all means of collection have been exhausted and the potential for recovery is considered remote. Our accounts receivable is nil and $ 8,000
as of May 31, 2018 and November 30, 2017, respectively. The accounts receivable of $8,000 was collected in January 17, 2018. The
allowance of any uncollectible accounts at May 31, 2018 and November 30, 2017 was nil. 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:
Categories Estimated useful life
Office equipment 5 years Expenditures for maintenance and repairs are
expensed as incurred. The gain or loss on the disposal of plant and equipment is the difference between the net sales proceeds
and the carrying amount of the relevant assets and is recognized in the statement of operations. Depreciation,
classified as operating expenses, was $0 and $205 from
inception to November 30, 2017 and from December 1, 2017 to May 31, 2018, respectively. 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. Net income/(loss) per share The Company calculates net income/(loss) per
share in accordance with ASC Topic 260, “Earnings per Share.” 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: receivables 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 May 2014, the FASB issued Accounting Standards
Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 supersedes the
revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when
it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to
be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December
15, 2016, including interim periods within that reporting period. Early adoption is not permitted. In August 2015, the FASB issued
an Accounting Standards Update to defer by one year the effective dates of its new revenue recognition standard until annual reporting
periods beginning after December 15, 2017 (2018 for calendar-year public entities) and interim periods therein. Management is currently
assessing the impact the adoption of ASU 2014-09 and has not determined the effect of the standard on our ongoing financial reporting. In August 2014, the FASB issued ASU No. 2014-15,
Presentation of Financial Statements – Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue
as a Going Concern 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. |
