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Note 2 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)
3 Months Ended
Jun. 30, 2012
Fair Value of Financial Instruments:  
Fair Value of Financial Instruments

Fair value of financial instruments

 

The Company adopted the provisions of Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: 

Level 1- Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. 

Level 2- Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. 

Level 3- Inputs are unobservable inputs which reflect the reporting entity’s own assumptions.

The carrying amounts reported in the balance sheets for cash, notes receivable, advance to suppliers, prepaid expenses and other receivables, accounts payable, advance from customers, short-term loans, taxes payable, construction security deposit, due to related parties, other payables, accrued expenses and approximate their fair market value based on the short-term nature of these instruments. The carrying value of the long-term debt including imputed interest approximates fair value based on market rates and terms currently available to the Company. The Company uses Level 2 inputs to measure fair value of its warrant liabilities (see note 12).