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Note 2 - Basis of Presentation and Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)
6 Months Ended
Jun. 30, 2014
Policies  
Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

Financial instruments consist of loans payable and convertible debentures. The fair value of our loans payable are carried at historical cost; their respective estimated fair values approximate their carrying values due to the short term nature of these items.  We use level 3 inputs under the fair value hierarchy to estimate the fair value of these instruments. It is not practical to determine the fair value of our convertible debentures due to the unique terms and embedded financial instruments.

 

Derivative financial instruments, as defined in ASC 815 “Accounting for Derivative Financial Instruments and Hedging Activities” consist of financial instruments or other contracts that contain a notional amount and one or more underlying (e.g., interest rate, security price or other variable), require no initial net investment and permit net settlement. Derivative financial instruments may be free-standing or embedded in other financial instruments. We generally do not use derivative financial instruments to hedge exposures to cash-flow, market or foreign-currency risks.