2.4.0.8114 - Disclosure - INCOME TAXEStruefalsefalse1false falsefalsecx_01_June_2012_TO_31_May_2013http://www.sec.gov/CIK0001409430duration2012-06-01T00:00:002013-05-31T00:00:001false 4us-gaap_IncomeTaxDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>NOTE 8 – INCOME TAXES</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company accounts for income taxes under the asset and liability method prescribed by ASC Topic “Accounting for Income Taxes.” This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applicable to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In addition, effective June 1, 2007, the Company adopted ASC 740-10, “Accounting for Uncertainty in Income Taxes, which clarifies the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company’s financial statements. ASC 740-10 prescribes a recognition threshold of more likely than not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. The Company did not record any transition adjustment as a result of the adoption of ASC 740-10.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company recognizes accrued interest and penalties related to potential liability for uncertain tax positions as a component of tax expense. This policy did not change as a result of the adoption of ASC 740-10. No penalties were recognized during fiscal 2012 or fiscal 2013.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> No provision for income taxes has been recorded due to the net operating loss carry forwards totaling approximately $2,259,721 as of May 31, 2013, that will be offset against future taxable income. The available net operating loss carry forwards expire in various years through 2030. No tax benefit has been reported in the financial statements because the Corporation believes there is a 50% or greater chance the carry forwards will expire unused. </p> <div> <table border="1" cellpadding="3" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="center" colspan="4">May 31</td> </tr> <tr valign="top"> <td align="left"> </td> <td align="center" width="2%"> </td> <td align="center" width="17%">2013</td> <td align="center" width="2%"> </td> <td align="center" width="17%">2012</td> </tr> <tr valign="top"> <td align="left">Net Operating Loss</td> <td align="center" width="2%"> $</td> <td align="center" width="17%"> 2,259,721 </td> <td align="center" width="2%"> $</td> <td align="center" width="17%"> 2,206,704 </td> </tr> <tr valign="top"> <td align="left">Statutory Rate</td> <td align="center" width="2%"> $</td> <td align="center" width="17%"> 34% </td> <td align="center" width="2%"> $</td> <td align="center" width="17%"> 34% </td> </tr> <tr valign="top"> <td align="left">Income tax recovery at statutory rate</td> <td align="center" width="2%"> $</td> <td align="center" width="17%"> 768,305 </td> <td align="center" width="2%"> $</td> <td align="center" width="17%"> 750,279 </td> </tr> <tr valign="top"> <td align="left">Less valuation allowance</td> <td align="center" width="2%"> </td> <td align="center" width="17%"> ( 768,305) </td> <td align="center" width="2%"> </td> <td align="center" width="17%"> ( 750,279) </td> </tr> <tr valign="top"> <td align="left">Net deferred income tax asset</td> <td align="center" width="2%"> </td> <td align="center" width="17%"> - -- </td> <td align="center" width="2%"> </td> <td align="center" width="17%"> - -- </td> </tr> </table> </div>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 false0INCOME TAXES [Text Block]falseINCOME TAXESUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.allamericangoldcorp.com/taxonomy/role/NotesToFinancialStatementsIncomeTaxDisclosureTextBlock11