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Note 6 - Fair Value of Financial Instruments
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Aug. 31, 2012
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| Fair Value Disclosures [Text Block] |
Note
6 – Fair Value of Financial Instruments
Under
FASB ASC 820-10-05, the Financial Accounting Standards Board
establishes a framework for measuring fair value in generally
accepted accounting principles and expands disclosures about
fair value measurements. This Statement reaffirms that fair
value is the relevant measurement attribute. The adoption of
this standard did not have a material effect on the
Company’s financial statements as reflected herein. The
carrying amounts of cash, accounts payable and accrued
expenses reported on the balance sheet are estimated by
management to approximate fair value primarily due to the
short term nature of the instruments. The Company had no
other items that required fair value measurement on a
recurring basis.
The
Company’s financial assets and liabilities are measured
using inputs from the three levels of the fair value
hierarchy. The three levels are as follows:
Level
1 - Inputs are unadjusted quoted prices in active markets for
identical assets or liabilities that the Company has the
ability to access at the measurement date.
Level
2 - Inputs include quoted prices for similar assets and
liabilities in active markets, quoted prices for identical or
similar assets or liabilities in markets that are not active,
inputs other than quoted prices that are observable for the
asset or liability (e.g., interest rates, yield curves,
etc.), and inputs that are derived principally from or
corroborated by observable market data by correlation or
other means (market corroborated inputs).
Level
3 - Unobservable inputs that reflect our assumptions about
the assumptions that market participants would use in pricing
the asset or liability.
The
following table provides a summary of the fair values of
assets and liabilities:
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