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Note 7 - Income Taxes
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Aug. 31, 2012
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| Income Tax Disclosure [Text Block] |
Note
7 – Income Taxes
The
Company accounts for income taxes under FASB ASC 740-10,
which provides for an asset and liability approach of
accounting for income taxes. Under this approach, deferred
tax assets and liabilities are recognized based on
anticipated future tax consequences, using currently enacted
tax laws, attributed to temporary differences between the
carrying amounts of assets and liabilities for financial
reporting purposes and the amounts calculated for income tax
purposes.
As
of August 31, 2012, the Company incurred a net operating loss
and, accordingly, no provision for income taxes has been
recorded. In addition, no benefit for income taxes has been
recorded due to the uncertainty of the realization of any tax
assets.
The
tax effects of the temporary differences that give rise to
the Company's estimated deferred tax assets and liabilities
are as follows:
As
of August 31, 2012, the Company had net operating loss carry
forwards of approximately $280,756 available to offset future
taxable income. The net operating loss carry
forwards, if not utilized, will begin to expire in
2021.
Based
on the available objective evidence, including the
Company’s history of its loss, management believes it
is more likely than not that the net deferred tax assets will
not be fully realizable. Accordingly, the Company provided
for a full valuation allowance against its net deferred tax
assets at August 31, 2012. The Company had no
uncertain tax positions as of August 31, 2012.
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