| 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 August 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 August 31, 2018, we
had general and administrative expenses in the amount $27,844, which was primarily legal and professional charge, audit fee, taxation
service fee, travelling and accommodation expenses, company secretary fee, Edgar filing fee, web expenses and depreciation. From June 1, 2018 to August 31, 2018, we have
had general and administrative expenses in the amount of $17,471, which was primarily legal and professional charge, audit fee,
taxation service fee, travelling and accommodation expenses, company secretary fee, Edgar filing fee, web expenses and depreciation. 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
$41,976 as of August 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 revenue at August 31, 2018 and November
30, 2017 are classified as current liabilities and totaled:
As of August 31, 2018 As of November 30, 2017
(Unaudited)
Deferred revenue $ 46,600 $ - 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 August 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 August 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 $308 from inception to November 30, 2017 and from December 1, 2017 to August 31, 2018, respectively. 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 Financial Accounting Standards
Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which
amends the existing accounting standards for revenue recognition. In August 2015, the FASB issued ASU No. 2015-14, Revenue from
Contracts with Customers (Topic 606): Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year.
The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In March 2016, the FASB
issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations
(Reporting Revenue Gross versus Net) (ASU 2016-08) which clarifies the implementation guidance on principal versus agent considerations.
The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is
transferred to the customers. The new standard further requires new disclosures about contracts with customers, including the significant
judgments the company has made when applying the guidance. We will adopt the new standard effective December 1, 2018, using the
modified retrospective transition method. In June 2014, the FASB issued Accounting Standards
Update (“ASU”) No. 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting
Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation,” (“ASU 2014-10”).
ASU 2014-10 removes the definition of a development stage entity from the ASC, thereby removing the financial reporting distinction
between development stage entities and other reporting entities from GAAP. In addition, ASU 2014-10 eliminates the requirements
for development stage entities to (1) present inception-to-date information in the statements of operations, cash flows, and stockholders’
equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development
stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development
stage entity that in prior years it had been in the development stage. ASU 2014-10 is effective for annual reporting periods beginning
after December 15, 2014, and interim periods therein. Early adoption is permitted. The Company has elected to adopt ASU 2014-10
effective with this registration statement on Form S-1 and its adoption resulted in the removal of previously required development
stage disclosures. In October 2016, the FASB issued Accounting
Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers Other than Inventory (ASU 2016-16), which requires
companies to recognize the income-tax consequences of an intra-entity transfer of an asset other than inventory. This guidance
will be effective for us in the first quarter of 2018, with the option to adopt it in the first quarter of 2017. We currently anticipate
adopting the new standard effective January 1, 2018, and do not expect the standard to have a material impact on our financial
statements. In November 2016, the FASB issued Accounting
Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires companies to include
amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period
and end-of-period total amounts shown on the statement of cash flows. This guidance will be effective for us in the first quarter
of 2018 and early adoption is permitted. We are still evaluating the effect that this guidance will have on our financial statements
and related disclosures. 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. |
