PROPERTY AND EQUIPMENT

12 Months Ended

Oct. 31, 2011

(4) PROPERTY AND EQUIPMENT

Property and equipment is stated at cost. The Company records depreciation and amortization, when appropriate, using the straight-line method over the estimated useful lives of the assets. Expenditures for maintenance and repairs are charged to expense as incurred. Additions, major renewals and replacements that increase the property’s useful life are capitalized. Property sold or retired, together with the related accumulated depreciation is removed from the appropriate accounts and the resultant gain or loss is included in net income (loss).

			At October 31, 2011							At October 31, 2010
	Depreciable Life (in years)		Cost $		Accumulated Depreciation $			Net Book Value $		Cost $		Accumulated Depreciation $			Net Book Value $
Office Equipment		1-2		3,830		(3,383	)		447		3,830		(1,469	)		2,361
Computer Equipment		1-3		101,975		(34,031	)		67,944		17,237		(3,921	)		13,316
Furniture		1-2		650		(155	)		495
				106,455		(37,569	)		68,886		21,067		(5,390	)		15,677

The depreciation expense for fiscal 2011 amounted to $32,179 and for fiscal 2010 amounted to $5,370.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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