2. Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2013

Notes

2. Summary of Significant Accounting Policies

2.         Summary of Significant Accounting Policies

Basis of presentation

We are in the process of evaluating business opportunities and have entered a new development stage as of January 1, 2010 and present our financial statements in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (the “Codification” or “ASC”) Topic 915. Our fiscal year end is December 31. The accompanying consolidated interim financial statements of Arvana Inc. for the six month periods ended June 30, 2013 and 2012, and for the cumulative amounts from the beginning of the development stage on January 1, 2010, through June 30, 2013, have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) for financial information with the instructions to Form 10-Q and Regulation S-X. Although they are unaudited, in the opinion of management, they include all adjustments, consisting only of normal recurring items, necessary for a fair presentation. Results are not necessarily indicative of results which may be achieved in the future. The consolidated interim financial statements and notes appearing in this report should be read in conjunction with our consolidated audited financial statements and related notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in the our Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2013.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Financial instruments

The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values:

Cash - the carrying amount approximates fair value because the amounts consist of cash held at a bank.

Accounts payable and accrued liabilities and loans payable - the carrying amount approximates fair value due to the short-term nature of the obligations.

The estimated fair values of the Company's financial instruments as of June 30, 2013 and December 31, 2012 follows:

SCHEDULE OF CASH AND CASH EQUIVALENTS CARRYING AMOUNT AND FAIR VALUE

	June 30, 2013	June 30, 2013	December 31, 2012	December 31, 2012
Cash	1,181		1,254
Cash		1,181		1,254
Accounts payable and accrued liabilities Carrying	1,020,497		1,017,344
Accounts payable and accrued liabilities Fair Value		1,020,497		1,017,344
Loans payable to stockholders Carrying Amount	627,850		631,631
Loans payable to stockholders Fair Value		627,850		631,631
Loans payable to related party Carrying Amount	35,242		36,741
Loans payable to related party Fair Value		35,242		36,741
Loans payable Carrying Amount	144,508		145,051
Loans payable Fair Value		144,508		145,051
Amounts due to related parties Carrying Amount	495,529		475,314
Amounts due to related parties Fair Value		495,529		475,314

The following table presents information about the assets that are measured at fair value on a recurring basis as of June 30, 2013, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset:

SCHEDULE OF CASH AND CASH EQUIVALENTS

Assets:	June 30, 2013
Cash	1,181
Cash Quoted Prices in Active Markets Level 1	1,181
Cash Significant other observable Inputs Level 2	—
Cash Significant Unobservable Inputs Level 3	—

The fair value of cash is determined through market, observable and corroborated sources.

Recent accounting pronouncements

We have 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 our financial condition or the results of our operations.