| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of presentation The
consolidated financial statements for Phoenix Plus Corp. and its subsidiaries. For the period ended October 31, 2021 is prepared in accordance
with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of Phoenix
Plus Corp. and its wholly owned subsidiaries, Phoenix Plus Corp. and Phoenix Plus International Limited. Intercompany accounts and transactions
have been eliminated on consolidation. The Company has adopted July 31 as its fiscal year end. Basis
of consolidation The
consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions
have been eliminated upon consolidation. 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
recognition In
accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic
606, Revenue from Contracts Revenue
is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue. The
Company derives its revenue from provision of technical consultancy on solar power system and consultancy on green energy solution. 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. Investment under equity method The Company apply the equity method to account
for investments it possesses the ability to exercise significant influence, but not control, over the operating and financial policies
of the investee. The ability to exercise significant influence is presumed when the investor possesses more than 20% of the voting
interests of the investee. In applying the equity method, the Company records
the investment at cost and subsequently increase or decrease the carrying amount of the investment by proportionate share of the net
earnings or losses and other comprehensive income of the investee. The Company records dividends or other equity distributions as reductions
in the carrying value of the investment. PHOENIX
PLUS CORP. NOTES
TO CONDENSED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED OCTOBER 31, 2021 (Currency
expressed in United States Dollars (“US$”), except for number of shares) (UNAUDITED) 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 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 period
ended October 31, 2021, the Company incurred a net loss of $ 30,669
and has generated revenue of $ 19,918 .
The company has accumulated deficit of $ 1,181,465 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
stock holders, in the case of equity financing. PHOENIX
PLUS CORP NOTES
TO CONDENSED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED OCTOBER 31, 2021 (Currency
expressed in United States Dollars (“US$”), except for number of shares) (UNAUDITED) Net
loss per share The
Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Foreign
currencies translation Transactions
denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing
at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated
into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded
in the statements of operations. The
reporting currency of the Company is United States Dollars (“US$”). The Company’s subsidiary in Labuan and Hong Kong
maintains its books and record in United States Dollars (“US$”) respectively, and Ringgits Malaysia (“MYR”) is
functional currency as being the primary currency of the economic environment in which the entity operates. In
general, for consolidation purposes, assets and liabilities of its subsidiary whose functional currency is not the US$ are translated
into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement Translation
of amounts from MYR into US$1 and HK$ into US$1 has been made at the following exchange rates for the respective periods: SCHEDULE OF FOREIGN CURRENCY TRANSLATION
As of and for the period ended October 31, 2021 As of and for the period ended October 31, 2020
Period-end RM : US$1 exchange rate 4.14 4.15
Period-average RM : US$1 exchange rate 4.16 4.16
Period-end HK$: US$1 exchange rate 7.78 7.75
Period-average HK$ : US$1 exchange rate 7.78 7.75 Related
parties Parties,
which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control
the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also
considered to be related if they are subject to common control or common significant influence. PHOENIX
PLUS CORP. NOTES
TO CONDENSED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED OCTOBER 31, 2021 (Currency
expressed in United States Dollars (“US$”), except for number of shares) (UNAUDITED) 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: Leases Prior
to August 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases Leases, Recent
accounting pronouncements ASB
issues various Accounting Standards Updates relating to the treatment and recording of certain accounting transactions. On June 10, 2014,
the Financial Accounting Standards Board 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, which eliminates the concept of a development stage entity (DSE) entirely from current accounting guidance. The Company
has elected adoption of this standard, which eliminates the designation of DSEs and the requirement to disclose results of operations
and cash flows since inception. The
Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do 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. PHOENIX
PLUS CORP NOTES
TO CONDENSED FINANCIAL STATEMENTS FOR
THE THREE MONTHS ENDED OCTOBER 31, 2021 (Currency
expressed in United States Dollars (“US$”), except for number of shares) (UNAUDITED) |
