2.4.0.8007 - Disclosure - 2. PRESENTATION OF FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIEStruefalsefalse1falsefalsefalsec2_From1Jan2013To30Jun2013http://www.sec.gov/CIK0000874792duration2013-01-01T00:00:002013-06-30T00:00:001true1us-gaap_AccountingPoliciesAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false2us-gaap_SignificantAccountingPoliciesTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<table cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
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<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">PRESENTATION
OF FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES</font>
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<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Basis of
Presentation</font> – The accompanying unaudited
consolidated financial statements have been prepared in
accordance with U.S. generally accepted accounting principles
(“GAAP”) for interim financial information and
with the instructions to Form 10-Q. Accordingly, they do not
include all of the information and footnotes required by GAAP
for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring
adjustments) considered necessary for a fair presentation
have been included.</font>
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<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Going
concern</font> - The Company’s consolidated financial
statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets
and satisfaction of liabilities in the normal course of
business. As shown in the financial statements, the Company
incurred a net loss of $421,156 during the six months ended
June 30, 2013, while the Company’s current liabilities
exceeded its current assets by $244,066.</font>
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<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
view of the matters described in the preceding paragraph,
recoverability of a major portion of the recorded asset
amounts shown in the accompanying balance sheet is dependent
upon continued operations of the Company, which in turn is
dependent upon the Company’s ability to meet its
financing requirements on a continuing basis by raising
additional funds through debt or equity financing. The
Company expects to satisfy its cash requirements by obtaining
additional loans; however, there is no assurance that
additional capital will be available to the Company when
needed and on acceptable terms. The financial statements do
not include any adjustments relating to the recoverability
and classification of recorded asset amounts or amounts and
classification of liabilities that might be necessary should
the Company be unable to continue in existence.</font>
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<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Use of Estimates
and Assumptions</font> – The preparation of financial
statements in accordance with United States generally
accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosures 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 materially differ from
these estimates.</font>
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<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Cash and Cash
Equivalents</font> – Cash includes petty cash and cash
held on current bank accounts. Cash equivalents include
short-term investments with an original maturity of three
months or less that are readily convertible to known amounts
of cash which are subject to insignificant risk of changes in
value. Cash and cash equivalents as of June 30, 2013 and
December 31, 2012 consisted mainly of U.S. dollar-denominated
current accounts held at major banks.</font>
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<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Revenue
Recognition</font> – The Company is not currently
generating revenue; however, revenue generated in the future
will be recognized in accordance with SEC rules. The four
criteria that must be met in order to recognize revenue are:
(1) persuasive evidence of an arrangement exists; (2)
delivery has occurred; (3) the selling price is fixed and
determinable; and (4) collectability is reasonable
assured.</font>
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<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Earnings (Loss)
per Share</font> – Earnings (loss) per share are
computed in accordance with current accounting literature.
Basic earnings (loss) per share are calculated by dividing
the net income (loss) available to common stockholders by
the weighted average number of shares outstanding during
the year. Diluted earnings per share reflect the potential
dilution of securities that could share in earnings of an
entity. In a loss year, dilutive common equivalent shares
are excluded from the loss per share calculation as the
effect would be anti-dilutive.</font>
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<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Recently Issued
Accounting Pronouncements</font> – In February 2013,
the Financial Accounting Standards Board (FASB) issued
Accounting Standards Update (ASU) No. 2013-02, <font style="FONT-STYLE: italic; DISPLAY: inline">Comprehensive
Income (Topic 220): Reporting of Amounts Reclassified Out
of Accumulated Other Comprehensive Income</font>, to
improve the transparency of reporting these
reclassifications. Other comprehensive income includes
gains and losses that are initially excluded from net
income for an accounting period. Those gains and losses are
later reclassified out of accumulated other comprehensive
income into net income. The amendments in the ASU do not
change the current requirements for reporting net income or
other comprehensive income in financial statements. All of
the information that this ASU requires already is required
to be disclosed elsewhere in the financial statements under
U.S. GAAP. The new amendments will require an organization
to:</font>
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<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Present
(either on the face of the statement where net
income is presented or in the notes) the effects on
the line items of net income of significant amounts
reclassified out of accumulated other comprehensive
income - but only if the item reclassified is
required under U.S. GAAP to be reclassified to net
income in its entirety in the same reporting
period; and</font>
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<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Cross-reference
to other disclosures currently required under U.S.
GAAP for other reclassification items (that are not
required under U.S. GAAP) to be reclassified
directly to net income in their entirety in the
same reporting period. This would be the case when
a portion of the amount reclassified out of
accumulated other comprehensive income is initially
transferred to a balance sheet account (e.g.,
inventory for pension-related amounts) instead of
directly to income or expense.</font>
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<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
amendments apply to all public and private companies that
report items of other comprehensive income. Public
companies are required to comply with these amendments for
all reporting periods (interim and annual). The amendments
are effective for reporting periods beginning after
December 15, 2012, for public companies. Early adoption is
permitted. The adoption of ASU No. 2013-02 is not expected
to have a material impact on our financial position or
results of operations.</font>
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<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
January 2013, the FASB issued ASU No. 2013-01, <font style="FONT-STYLE: italic; DISPLAY: inline">Balance Sheet
(Topic 210): Clarifying the Scope of Disclosures about
Offsetting Assets and Liabilities</font>, which clarifies
which instruments and transactions are subject to the
offsetting disclosure requirements originally established
by ASU 2011-11. The new ASU addresses preparer concerns
that the scope of the disclosure requirements under ASU
2011-11 was overly broad and imposed unintended costs that
were not commensurate with estimated benefits to financial
statement users. In choosing to narrow the scope of the
offsetting disclosures, the Board determined that it could
make them more operable and cost effective for preparers
while still giving financial statement users sufficient
information to analyze the most significant presentation
differences between financial statements prepared in
accordance with U.S. GAAP and those prepared under IFRSs.
Like ASU 2011-11, the amendments in this update will be
effective for fiscal periods beginning on, or after January
1, 2013. The adoption of ASU 2013-01 is not expected to
have a material impact on our financial position or results
of operations.</font>
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