| Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES Basis of presentation The financial statements for Leader
Hill Corporation 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 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 Based on the assessment, the Company
concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of
Topic 606 and therefore there were no material changes to the Company’s consolidated financial statements upon adoption of
ASC 606. Revenue is measured at the fair value
of the consideration received or receivable, net of discounts and taxes applicable to the revenue. Revenue from supplies of consulting
services is recognized when title and risk of loss are transferred and there are no continuing obligations to the customer. Title
and the risks and rewards of ownership transfer to and accepted by the customer when the services are collected by the customer
at the Company’s office. Revenue is recorded net of sales discounts, returns, allowances, and other adjustments that are
based upon management’s best estimates and historical experience and are provided for in the same period as the related revenues
are recorded. Based on limited operating history, management estimates that there was no sales return for the period reported. The Company derives its revenue from
direct sales to individuals and business companies. Generally, the Company recognizes revenue when services are sold and accepted
by the customers and there are no continuing obligations to the customer. For the six months ended May 31, 2019,
the Company has realized a revenue of $2,800 through providing accounting and advisory related services to customers. General and administrative expenses For the three and six months ended May
31, 2019, the company has incurred general and administrative expenses of $3,689 and $8,633 respectively, which consist of mainly
financial statement review, transfer agent fee and legal fees. For the three and six months ended May
31, 2018, the company has incurred general and administrative expenses of $9,649 and $10,373 respectively, which consist of mainly
company incorporation fee, audit fee 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. The company has a cash and cash equivalents
of $531 and $24,761 as of May 31, 2019 and November 30, 2018 respectively. 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.
As of As of
(Unaudited) (Audited)
Deferred revenue $ 2,800 $ 5,600
For the six months ended May 31, 2019,
the Company has realized a revenue previously categorized as current liability amounted to $2,800 upon the completion of company
incorporation services. 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. 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. The company has incurred depreciation
expenses of $135 and $271 for the three months and six months ended May 31, 2019 respectively. For the three and six months ended May
31, 2018, the company has incurred $103 and $205 of depreciation expenses respectively. 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 six months ended May
31, 2019, the Company incurred a net loss of $5,833 which arrives at accumulated deficit of $52,915 and no revenue has been generated.
These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date
that the financial statements are issued. The financial statements do not include any adjustments that might be necessary if the
Company is unable to continue as a going concern. The Company’s ability to continue
as a going concern is dependent upon improving its profitability and the continuing financial support from its shareholders. Management
believes the existing shareholders or external financing will provide the additional cash to meet the Company’s obligations
as they become due. 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 stockholders,
in the case of equity financing. 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. |
