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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Oct. 31, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
ACCOUNTING METHODS
 
The Company recognizes income and expenses based on the accrual method of
accounting.
 
DIVIDEND POLICY
 
The Company has not yet adopted a policy regarding payment of dividends.
 
BASIC AND DILUTED NET INCOME (LOSS) PER SHARE
 
Basic net income (loss) per share amounts are computed based on the weighted
average number of shares actually outstanding. Diluted net income (loss) per
share amounts are computed using the weighted average number of common and
common equivalent shares outstanding as if shares had been issued on the
exercise of the common share rights unless the exercise becomes anti-dilutive
and then the basic and diluted per share amounts are the same.
 
EVALUATION OF LONG-LIVED ASSETS
 
The Company periodically reviews its long term assets and makes adjustments, if
the carrying value exceeds fair value.
 
INCOME TAXES
 
The Company utilizes the liability method of accounting for income taxes. Under
the liability method deferred tax assets and liabilities are determined based on
differences between financial reporting and the tax bases of the assets and
liabilities and are measured using the enacted tax rates and laws that will be
in effect, when the differences are expected to be reversed. An allowance
against deferred tax assets is recorded, when it is more likely than not, that
such tax benefits will not be realized.
 
INCOME TAXES - CONTINUED
 
On October 31, 2010 the Company had a net operating loss carry forward of
$414,261 for income tax purposes. The tax benefit of approximately $141,000 from
the loss carry forward has been fully offset by a valuation reserve because the
future tax benefit is undeterminable since the Company is unable to establish a
predictable projection of operating profits for future years. Losses will begin
to expire in 2027.
 
FOREIGN CURRENCY TRANSLATIONS
 
Part of the transactions of the Company were completed in Canadian dollars and
have been translated to US dollars as incurred, at the exchange rate in effect
at the time, and therefore, no gain or loss from the translation is recognized.
The functional currency is considered to be US dollars.
 
REVENUE RECOGNITION
 
Revenue is recognized on the sale and delivery of a product or the completion of
a service provided.
 
ADVERTISING AND MARKET DEVELOPMENT
 
The company expenses advertising and market development costs as incurred.
 
FINANCIAL INSTRUMENTS
 
The carrying amounts of financial instruments are considered by management to be
their fair value due to their short term maturities.
 
ESTIMATES AND ASSUMPTIONS
 
Management uses estimates and assumptions in preparing financial statements in
accordance with general accepted accounting principles. Those estimates and
assumptions affect the reported amounts of the assets and liabilities, the
disclosure of contingent assets and liabilities, and the reported revenues and
expenses. Actual results could vary from the estimates that were assumed in
preparing these financial statements.
 
IMPAIRMENT OF LONG-LIVED ASSETS
 
The Company reviews and evaluates long-lived assets for impairment when events
or changes in circumstances indicate that the related carrying amounts may not
be recoverable. The assets are subject to impairment consideration under ASC
360-10-35-17 if events or circumstances indicate that their carrying amounts
might not be recoverable. When the Company determines that an impairment
analysis should be done, the analysis will be performed using rules of ASC
930-360-35, Asset Impairment, and 360-10-15-3 through 15-5, Impairment or
Disposal of Long-Lived Assets.
 
MINERAL PROPERTY ACQUISITION COSTS
 
Mineral property acquisition costs are initially capitalized when incurred.
These costs are then assessed for impairment when factors are present to
indicate the carrying costs may not be recoverable. Mineral exploration costs
are expensed when incurred.
 
STATEMENT OF CASH FLOWS
 
For the purposes of the statement of cash flows, the Company considers all
highly liquid investments with a maturity of three months or less to be cash
equivalents.
 
ENVIRONMENTAL REQUIREMENTS
 
At the report date environmental requirements related to the mineral claim
acquired are unknown and therefore any estimate of any future cost cannot be
made.
 
RECLASSIFICATIONS
 
Certain prior period amounts have been reclassified to conform with current
period presentation.
 
RECENT ACCOUNTING PRONOUNCEMENTS
 
The Company does not expect that the adoption of recent accounting
pronouncements will have a material impact on its financial statements.