1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Aug. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 -  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a.  Organization

Rosewind Corporation (the “Company”) was initially incorporated on August 9, 2002 in the State of Colorado.  On August 13, 2005, the Company issued its sole officer and director 100,000 shares of its no par common stock as payment for $500 in fees and expenses incurred as part of organizing the Company.  During October 2002, the sole officer and director contributed $100 to the Company in order to open a bank account in the Company’s name.  Following the cash contribution, the Company remained inactive through June 1, 2004 when the corporation was dissolved.

In March 2005, the sole officer and director decided to reinstate the Company and develop an offshore sailing school near the Australian Great Barrier Reef.  Although the Company was officially reinstated with the State of Colorado on April 21, 2005, the accompanying financial statements report March 1, 2005 as the date of inception for accounting purposes, which was the date the Company commenced its operating activities.

b.  Accounting Method

The Company’s financial statements are prepared using the accrual method of accounting.  The Company has elected an August 31 year-end.

c.  Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America 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 financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

d.  Income Taxes

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences.  Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Net deferred tax assets consist of the following components as of August 31:

	2013			2012
Deferred tax assets:
NOL Carryover	$	172,100		$	122,700
Related Party Accruals		5,100			2,500
Valuation allowance		(177,200	)		(125,200	)
Net deferred tax asset	$	-		$	-

The income tax provision differs from the amount of income tax determined by applying the U.S. income tax rate to pretax income from continuing operations for the years ended August 31, 2013 and 2012 due to the following:

	2013			2012
Book Loss	$	(21,800	)	$	(17,902	)
Contributed Services		2,300			2,202
Stock Issued for Services		800			-
Meals and Entertainment		400			-
Related Party Accruals		1,900			-
State Taxes		(300)			-
Valuation allowance		16,700			15,700
	$	-		$	-

At August 31, 2013, the Company had net operating loss carryforwards of approximately $452,800, which expires in 2034, that may be offset against future taxable income as long as the “continuity of ownership” test is met.  No tax benefit has been reported in the August 31, 2013 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount.

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations.  Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years.

The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions.  The Company has identified its federal tax return and its state tax return in Colorado as “major” tax jurisdictions, as defined.  No reserves for uncertain tax positions have been recorded.  With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2008.

e.  Loss per Common Share

The Company reports net loss per share using a dual presentation of basic and diluted loss per share. Basic net loss per share excludes the impact of common stock equivalents.  Diluted net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents.  At August 31, 2013 there were no variances between the basic and diluted loss per share as there were no potentially dilutive securities outstanding.

The following table sets forth the computation of basic loss per share for the periods indicated:

	For the Years Ended  August 31, 2013			For the Years Ended  August 31, 2012
Loss (numerator)	$	(57,318	)	$	(59,675	)
Shares (denominator)		4,884,500			4,811,502
Net loss per common share – basic and diluted	$	(0.01	)	$	(0.01	)

f.  Development Stage

The Company is in the development stage in accordance with ASC Topic 915 “Development Stage Entities”.  As of August 31, 2013 the Company has devoted substantially all of its efforts to financial planning and acquiring and reconditioning a sailing vessel.

g.  Property and Equipment

The Company’s capital assets consist of one sailing vessel, a 1982/86 Jason 35 Cutter rig, and an inflatable boat which are stated at the lower of cost or market.  Depreciation is calculated using the straight-line method over the estimated useful life of the vessel and related improvements, ranging from five to ten years.  Expenditures for additions and improvements are capitalized, while repairs and maintenance costs are expensed as incurred.  The cost and related accumulated depreciation of any capital assets that are sold or otherwise disposed of are removed from the accounts and any gain or loss is recorded in the year of disposal.

Fixed assets and related depreciation for the years ended August 31 are as follows: 

	2013			2012
Sailing vessel	$	65,870		$	65,870
Accumulated depreciation		(58,351	)		(53,409	)
Total fixed assets	$	7,519		$	12,461

Depreciation expense was $4,942 and $6,150 for the years ended August 31, 2013 and 2012, respectively.

h. Revenue Recognition

Revenue will be recognized when the services are provided and collection is reasonably assured.

i. Foreign Currency Translation

Expenses incurred and paid in foreign currency have been translated to U.S. currency for reporting purposes.

j. Advertising

The Company follows the policy of charging the costs of advertising to expense as incurred.  The Company recognized $345 and $1,381of advertising expense during the years ended August 31, 2013 and 2012, respectively.

k. Newly Adopted Accounting Pronouncements

The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position or cash flows.  Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations.

l.    Cash and Cash Equivalents

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

m.    Risks and Uncertainties

The Company has not insured the yacht in the past.  Effective October 14, 2011, the Company has obtained a liability only policy which provides $100,000 watercraft liability and $1,000 in watercraft medical payments per person.  The Company has no insurance on the yacht itself, and the limits on the current policy may leave the Company open to further liabilities.