| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES Basis
of Presentation These consolidated
financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States
of America and are presented in US dollars. The Company has selected July 31 as its year-end. In the opinion of management, all
adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of its financial position and the results
of operations for the period presented have been reflected herein. Cash
and Cash Equivalents The
Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. The
Company maintains cash and cash equivalent balances at one financial institution that is insured by the FDIC. As of July 31, 2023, the
Company had $ 758 Fair
Value of Financial Instruments The
Company follows FASB ASC 820, Fair Value Measurements and Disclosures, for all financial instruments and non-financial instruments accounted
for at fair value on a recurring basis. This accounting standard establishes a single definition of fair value and a framework for measuring
fair value, sets out a fair value hierarchy to be used to classify the source of information used in fair value measurement and expands
disclosures about fair value measurements required under other accounting pronouncements. It does not change existing guidance as to
whether or not an instrument is carried at fair value. The Company defines fair value as the price that would be received from selling
an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. AS
topic 820 “Fair Value Measurements and Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the
inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring
fair value are observable in the market. These
tiers include:
Level
1: Defined
as observable inputs such as quoted prices in active markets;
Level
2: Defined
as inputs other than quoted prices in active markets that are either directly or indirectly observable;
Level
3: Defined
as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The
Company has adopted FASB ASC 825, Financial Instruments, which allows companies to choose to measure eligible financial instruments and
certain other items at fair value that are not required to be measured at fair value. The Company has not elected the fair value option
for any eligible financial instruments. Comprehensive
Loss The
Company adopted FASB ASC 220, “Reporting Comprehensive Income”, which establishes standards for the reporting and display
of comprehensive income and its components in the consolidated financial statements. Comprehensive income consists of net income and
other gains and losses affecting stockholders’ equity that are excluded from net income, such as unrealized gains and losses on
investments available for sale, foreign currency translation gains and losses and minimum pension liability. Since inception, the Company’s
other comprehensive income represents foreign currency translation adjustments. Because
the Company assumes that the reported amounts of assets and liabilities will be recovered and settled, respectively, a difference between
the tax basis of an asset or a liability and its reported amount in the balance sheet will result in a taxable or a deductible amount
in some future years when the related liabilities are settled or the reported amounts of the assets are recovered, which gives rise to
a deferred tax asset. The Company must then assess the likelihood that the deferred tax assets will be recovered from future taxable
income and to the extent the Company believes that recovery is not likely, the Company must establish a valuation allowance. The
Company has adopted FASB guidance on accounting for uncertainty in income taxes which provides a consolidated financial statement recognition
threshold and measurement attribute for a tax position taken or expected to be taken in a tax return. Under this guidance, the Company
may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained
on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated
financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being
realized upon ultimate settlement. The guidance also extends to de-recognition of income tax assets and liabilities, classification of
current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income
tax disclosures. Basic
and Diluted Loss per Share The
Company computes income (loss) per share in accordance with FASB ASC 260 “Earnings per Share”. Basic loss per share is computed
by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the
period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive
loss per share excludes all potential common shares if their effect is anti-dilutive. From August 1, 2022, through July 31, 2023 there
were no potentially dilutive debt or equity instruments issued or outstanding. Use
of Estimates and Assumptions The
preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period.
Actual results could differ from those estimates. Due
to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that
the Company is a going concern. Recently
Adopted and Recently Enacted Accounting Pronouncements The
Company adopts new pronouncements relating to accounting principles generally accepted in the United States of America applicable to
the Company as they are issued, which may be in advance of their effective date. Management
does not believe that any recently issued, but not yet effective accounting standards, if currently adopted, would have a material effect
on the accompanying consolidated financial statements. In
March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.
2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This guidance
changes how companies account for certain aspects of share-based payments to employees. Among other things, under the new guidance, companies
will no longer record excess tax benefits and certain tax deficiencies in additional paid-in-capital (“APIC”) but will instead
record such items as income tax expense or benefit in the income statement, and APIC pools will be eliminated. Companies will apply this
guidance prospectively. Another component of the new guidance allows companies to make an accounting policy election for the impact of
forfeitures on the recognition of expense for share-based payment awards, whereby forfeitures can be estimated, as required today, or
recognized when they occur. If elected, the change to recognize forfeitures when they occur needs to be adopted using a modified retrospective
approach. The amendment is effective for public entities for fiscal years beginning after December 15, 2016. Early adoption is permitted.
The Company is currently evaluating the impact of this guidance, if any, on its financial statements and related disclosures. In
February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which issued new guidance related to leases that outlines a comprehensive
lease accounting model and supersedes the current lease guidance. The new -guidance requires lessees to recognize lease liabilities and
corresponding right-of-use assets for all leases with lease terms of greater than 12 months. It also changes the definition of a lease
and expands the disclosure requirements of lease arrangements. The new guidance must be adopted using the modified retrospective approach
and will be effective for the public entities for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company
is currently evaluating the impact of this guidance, if any, on its financial statements and related disclosures. In
July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. The guidance requires an
entity to measure inventory at the lower of cost or net realizable value, which is the estimated selling prices in the ordinary course
of business, less reasonably predictable costs of completion, disposal, and transportation, rather than the lower of cost or market in
the previous guidance. This amendment applies to inventory that is measured using first-in, first-out (FIFO). This amendment is effective
for public entities for fiscal years beginning after December 15, 2016, including interim periods within those years. A reporting entity
should apply the amendments prospectively with earlier application permitted as of the beginning of an interim or annual reporting period.
The Company is currently evaluating the impact of this guidance, if any, on its financial statements and related disclosures. |
