| Summary of Significant Accounting Policies and Organization | NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION (A) Organization The accompanying condensed unaudited
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America
and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do
not include all the information necessary for a comprehensive presentation of financial position and results of operations. It is management’s opinion
that all material adjustments (consisting of normal recurring adjustments) have been made, which are necessary for a fair financial
statements presentation. The results for the interim period are not necessarily indicative of the results to be expected for the
year. Golden Royal Development, Inc. (the
“Company”) was incorporated under the laws of the State of Delaware on November 13, 2016. As of March 31, 2019 and 2018, the
Company has no revenues from its oil, gas and mining properties operations. The Company’s accounting year
end is September 30. The Company is a business that has
not commenced planned principal operations. The Company is designed to engage in mineral exploration activities. The Company’s
activities since inception have consisted of identifying oil, gas and mining properties. The Company is also in the process of
raising additional equity capital to support its development activities to begin acquiring mining properties as soon as possible.
The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional funding
to operationalize the Company’s current plan to identify and acquire the mining properties. (B) Use of Estimates In preparing financial statements
in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect
the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial
statements and revenues and expenses during the reported period. Significant estimates include value of inventory and valuation
of deferred tax assets. Actual results could differ from those estimates. (C) Cash and Cash Equivalents The Company considers all highly
liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At March 31, 2019 and
September 30, 2018, the Company had no cash equivalents. (D) Loss Per Share Basic and diluted net loss per common
share is computed based upon the weighted average common shares outstanding as defined by FASB ASC No. 260, “Earnings Per
Share.” Diluted loss per share is computed by dividing net loss by the weighted average number of shares of common stock,
common stock equivalents and potentially dilutive securities outstanding during the period. At March 31, 2019 and 2018, the Company
did not have any outstanding dilutive securities. (E) Income Taxes The Company accounts for income
taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC 740-10-25, deferred tax assets and liabilities
are recognized for the future tax consequences attributable to 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. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income
in the period that includes the enactment date. (F) Revenue Recognition In May 2014, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts
with Customers (Topic 606),” which supersedes the revenue recognition requirements in Accounting Standards Codification 605,
“Revenue Recognition.” This ASU is based on the principle that revenue is recognized to depict the transfer of goods
or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for
those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue
and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized
from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, which deferred the effective
date of the new revenue standard by one year, and allowed entities the option to early adopt the new revenue standard as of the
original effective date. There have been multiple standards updates amending this guidance or providing corrections or improvements
on issues in the guidance. The requirements for these standards relating to Topic 606 are effective for interim and annual periods
beginning after December 15, 2017. This standard permitted adoption using one of two transition methods, either the retrospective
or modified retrospective transition method. The Company adopted these standards at the beginning of fiscal year 2019 using the
modified retrospective method. The comparative information has not been restated and continues to be reported under the accounting
standards in effect for those periods. The Company did not recognize any cumulative-effect adjustment to retained earnings upon
adoption as the effect was immaterial. The Company evaluated the impact of adopting the new standard and concluded that there was
no material impact on the Company’s revenue recognition policy. The Company revenue recognition
policy follows guidance from Accounting Standards Codification (ASC) 606, Revenue from Contract with Customers. Revenue is recognized
when the Company transferred promised goods and services to the customer and in the amount that reflect the consideration to which
the company expected to be entitled in exchange for those goods and services. The Company applies the following
five-step model in order to determine this amount:
(i) Identify the contact with a customer;
(ii) Identify the performance obligation of the contract
(iii) Determine the transaction price;
(iv) Allocate the transaction price to the performance obligations; and
(v) Recognize revenue when (or as) the Company satisfies each performance obligation. The Company has been in the exploration
stage since its formation on November 13, 2016 and has not yet realized any revenues from its planned operations. It is primarily
engaged in the acquisition and exploration of oil, gas and mining properties. (G) Mineral Property Pursuant to Statement of FASB ASC
No. 360, the recoverability of the acquisition costs associated with the purchase of mineral rights presumes to be insupportable
prior to determining the existence of a commercially minable deposit and have to be expensed. For the six months ended March 31,
2019 and 2018, the Company had expensed $690 and $0, respectively, related to the mineral rights acquisition and exploration costs. (H) Fair Value of Financial
Instruments The Company measures its financial
assets and liabilities in accordance with GAAP. For certain of our financial instruments, including cash, accounts payable, and
the short-term portion of long-term debt, the carrying amounts approximate fair value due to their short maturities. We adopted accounting guidance for
financial and non-financial assets and liabilities (ASC 820). The adoption did not have a material impact on our results of operations,
financial position or liquidity. This standard defines fair value, provides guidance for measuring fair value and requires certain
disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements
that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This
guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value
of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The
guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three
broad levels. The following is a brief description of those three levels:
● Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
● Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
● Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use. (I) Recent Accounting Pronouncements In February 2016, the FASB issued
ASU No. 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets
and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Topic 842 affects any entity
that enters into a lease, with some specified scope exemptions. The guidance in this Update supersedes Topic 840, Leases. The core
principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize
in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing
its right to use the underlying asset for the lease term. For public companies, the amendments in this Update are effective for
fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. All other newly issued accounting
pronouncements, but not yet effective, have been deemed either immaterial or not applicable. (J) Business Segments The Company operates in one segment
and therefore segment information is not presented. |
