SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Fair value of Financial Instruments (Policies)

3 Months Ended

Sep. 30, 2013

Policies

Fair value of Financial Instruments

Fair value of Financial Instruments

Generally accepted accounting principles in the United States (“US GAAP”) define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are as follows:

Level 1 - Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities.

Level 2 - Other inputs that are observable, directly or indirectly, such as quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3 - Unobservable inputs for which there is little or no market data and which we make our own assumptions about how market participants would price the assets and liabilities.

Our derivative liabilities have been valued as Level 3 instruments.

	Level 1		Level 2		Level 3		Total
Fair value of Derivative Liability - December 31, 2012	$	-	$	-	$	39,028	$	39,028
	Level 1		Level 2		Level 3		Total
Fair value of Derivative Liability - September 30, 2013	$	-	$	-	$	77,034	$	77,034