Rendering
Component: (Network and Table) |
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Network | 0012 - Disclosure - SIGNIFICANT ACCOUNTING POLICIES (Policies) (http://acuad.com/role/SignificantAccountingPoliciesPolicies) |
Table | (Implied) |
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis] | 0001539778 (http://www.sec.gov/CIK) |
Notes to Financial Statements | Period [Axis] |
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2011-10-01 - 2012-09-30 |
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Notes to Financial Statements | |
Development Stage Company | The
Company is considered to be in the development stage as defined in Statement of Financial Accounting Standards (SFAS) ASC 915,
Development Stage Entities. The Company has devoted substantially all of its efforts to establishing
a new business and for which either of the following conditions exists: planned principal operations have not commenced; or the
planned principal operations have commenced, and rising of capital and attempting to raise sales. |
Basis of accounting | The
financial statements reflect the assets, revenues and expenditures of the Company on the accrued basis of accounting. The Companys
fiscal year end is the last day of September 30. |
Use of Estimates | The
preparation of financial statements in conformity with generally accepted accounting principles in the United States of America
requires management to make estimates and assumptions that affect certain amounts reported in the financial statements and disclosures. Accordingly,
actual results could differ from those estimates. |
Concentration of credit risk | The
Company maintains its cash in bank accounts which, at times, may exceed the federally insured limits. The Company has
not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash. |
Cash and Cash Equivalents | The
Company considers all highly-liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
As of September 30, 2012 and 2011, the company had cash and cash equivalents of $181,879 and $435,437 respectively. |
Property, Plant, and Equipment Depreciation | Property,
plant, and equipment are stated at cost. Depreciation is being provided principally by straight line methods over the
estimated useful lives of the assets. As of September 30, 2012, there were no fixed assets in the Companys balance
sheets. |
Basics and Diluted Net Loss per Common Share | The Company computes per share amounts in accordance
with Statement of Financial Accounting Standards (SFAS) ASC 260, Earnings per Share (EPS). ASC 260 requires presentation
of basis and diluted EPS. Basic EPS is computed by dividing the income (loss) available to Common Shareholders by the
weighted-average number of common shares outstanding for the period. Diluted EPS is based on the weighted-average number
of shares of common stock and common stock equivalents outstanding during the periods.
The Company only issued one type of shares,
i.e., common shares only. There are no other types securities were issued. Accordingly, the diluted and basics
net loss per common share are the same. |
Stock-Based Compensation | The Company accounts for stock issued for services
using the fair value method. In accordance with FASB ASC 718, Stock-Based Compensation, the measurement date of shares
issued for services is the date at which the counterpartys performance is complete.
On June 30, 2011, 344,495 shares was issued
to Michael Williams @ $0.1 per share for legal service value $34,450.
On July 16, 2012, 150,000 shares were issued
to Michael Williams for legal services of $30,000 at $0.20 per share.
On June 20, 2012, 25,000 shares were issued
to Pivo Associates for services of $5,000 at $0.20 per share. |
Operating Leases | The Company entered
into a lease for its corporate offices in under terms of non-cancelable operating leases. The lease term is from February 24, 2011
through February 29, 2013 and requires a $169 monthly lease payment, and this office is located at 700 Commerce Drive, STE 500,
Oak Brook IL 60523, USA. |
Prepaid Expense | The Company prepaid
$16,000 legal service fee to Michael William as of September 30, 2012. |
Inventory | The
inventory was valued at cost of purchase from US suppliers. As of September 30 2012, the Company have inventory of vegetable seeds
of $239,000. |
Unearned Revenue | The
Company has $80,000 unearned revenue from the customer Beijing Olive Seed Scientific Co., Ltd for the sale has not delivered or
completed as of September 30 2012. |
Revenue Recognition | In accordance with the FASB Accounting
Standards Codification (ASC) 605-15-25 Revenue Recognition for Sales of Product, the Company recognizes revenue
when it is realized or realizable and earned. The revenue from the product sales transaction shall be recognized at
time of sale if the following conditions are met:
∙ |
The sellers price to the buyer is substantially fixed or determinable at the date of sale. |
∙ |
The buyer has paid the seller, or the buyer is obligated to pay the seller and the obligation is not contingent on resale of the product. |
∙ |
The buyers obligation to the seller would not be changed in the event of theft or physical destruction or damage of the product. |
∙ |
The buyer acquiring the product for resale has economic substance apart from that provided by the seller. |
∙ |
The seller does not have significant obligations for future performance to directly bring about resale of the product by the buyer. |
∙ |
The amount of future returns can be reasonably estimated. |
Revenues include sales of seeds in Asia, Europe,
and North America.
The Company had total revenue of $178,000 for
the period of October 1, 2011 to September 30, 2012.
|
Cost of Goods Sold | The Companys
purchase cost is primarily from supplier, U.S seed companies. Based upon managements experience in the industry, we believe
vegetable seeds supply in United State for the varieties we intend to sell is plenty. We believe that with advanced technology
and mature global seed accessibility, U.S seed companies can provide the varieties Chinese end users are looking for. We are focused
on finding the right variety. We first will collect specifications from Chinese end users, then we will match them with the variety
here. We ask samples or sometimes we purchase small amount of seed. We will then try them in various locations in China
at different planting season. The challenge we have is that not all the varieties we may initially select will prove to work in
China. The trial cycle can be over a year in some cases.
We do not anticipate
offering any material right of return on our product although we may reimburse buyers on a case-by-case basis if seed which passed
our trials does not perform well for a particular grower through no fault of the grower.
From the period of
October 1, 2011 to September 30, 2012, the Company purchase $402,600 vegetable seeds from US suppliers, and a cost amount of $163,600 have been sold to China; and the less of the $239,000 was stored as the inventory of the Company as of September 30, 2012.
For the fiscal year
ended September 30, 2012, the Company had $ 356 certificate fee and $1,689 freight cost.
As a result, a total
of $165,645 cost of good sold was recorded for the period of October 1, 2011 to September 30, 2012.
|
Operating Expense | Operation expense consists of selling, general
and administrative expenses.
For the year ended September 30, 2012 and 2011,
there was a total of $129,664 and $37,543 operating expenses respectively.
For the cumulative period from February 7,
2011 (Date of Inception) to September 30, 2012, there was a total of $167,207 operating expenses.
The Details were showed in Exhibit A. |
Comprehensive Income | The
companys comprehensive income is comprised of net income, unrealized gains and losses on marketable securities classified
foreign currency translation adjustments, and unrealized gains and losses on derivative financial instruments related to foreign
currency hedging. |
Recent Accounting Pronouncements | The following pronouncements have become
effective during the period covered by these financial statements or will become effective after the end of the period covered
by these financial statements:
Pronouncement |
|
Issued |
|
Title |
ASC 605 |
|
October 2009 |
|
Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements a consensus of the FASB Emerging Issues Task Force |
ASC 860 |
|
December 2009 |
|
Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets |
ASC 505 |
|
January 2010 |
|
Accounting for Distributions to Shareholders with Components of Stock and Cash a consensus of the FASB Emerging Issues Task Force |
ASC 810 |
|
January 2010 |
|
Consolidation (Topic 810): Accounting and Reporting for Decreases in Ownership of a Subsidiary a Scope Clarification |
ASC 718 |
|
January 2010 |
|
Compensation Stock Compensation (Topic 718): Escrowed Share Arrangements and the Presumption of Compensation |
ASC 820 |
|
January 2010 |
|
Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements |
ASC 810 |
|
February 2010 |
|
Consolidation (Topic 810): Amendments for Certain Investment Funds |
ASC 815 |
|
March 2010 |
|
Derivatives and Hedging (Topic 815): Scope Exception Related to Embedded Credit Derivatives |
ASC-310 Receivables |
|
July 2010 |
|
For public entities, the disclosure as of the end of a reporting period are effective for interim and annual reporting periods ending on or after December 15, 2010. The disclosures about activity that occurs during a reporting period are effective for interim and annual reporting periods beginning on or after December 15, 2010. For nonpublic entities, the disclosures are effective for annual reporting period ending on or after December 15, 2011. |
Management does not anticipate that
the adoption of these standards will have a material impact on the financial statements.
|
The Companys
purchase cost is primarily from supplier, U.S seed companies. Based upon managements experience in the industry, we believe
vegetable seeds supply in United State for the varieties we intend to sell is plenty. We believe that with advanced technology
and mature global seed accessibility, U.S seed companies can provide the varieties Chinese end users are looking for. We are focused
on finding the right variety. We first will collect specifications from Chinese end users, then we will match them with the variety
here. We ask samples or sometimes we purchase small amount of seed. We will then try them in various locations in China
at different planting season. The challenge we have is that not all the varieties we may initially select will prove to work in
China. The trial cycle can be over a year in some cases.
We do not anticipate
offering any material right of return on our product although we may reimburse buyers on a case-by-case basis if seed which passed
our trials does not perform well for a particular grower through no fault of the grower.
From the period of
October 1, 2011 to September 30, 2012, the Company purchase $402,600 vegetable seeds from US suppliers, and a cost amount of $163,600 have been sold to China; and the less of the $239,000 was stored as the inventory of the Company as of September 30, 2012.
For the fiscal year
ended September 30, 2012, the Company had $ 356 certificate fee and $1,689 freight cost.
As a result, a total
of $165,645 cost of good sold was recorded for the period of October 1, 2011 to September 30, 2012.
The
financial statements reflect the assets, revenues and expenditures of the Company on the accrued basis of accounting. The Companys
fiscal year end is the last day of September 30.
The
Company maintains its cash in bank accounts which, at times, may exceed the federally insured limits. The Company has
not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash.
Property,
plant, and equipment are stated at cost. Depreciation is being provided principally by straight line methods over the
estimated useful lives of the assets. As of September 30, 2012, there were no fixed assets in the Companys balance
sheets.
The Company computes per share amounts in accordance
with Statement of Financial Accounting Standards (SFAS) ASC 260, Earnings per Share (EPS). ASC 260 requires presentation
of basis and diluted EPS. Basic EPS is computed by dividing the income (loss) available to Common Shareholders by the
weighted-average number of common shares outstanding for the period. Diluted EPS is based on the weighted-average number
of shares of common stock and common stock equivalents outstanding during the periods.
The Company only issued one type of shares,
i.e., common shares only. There are no other types securities were issued. Accordingly, the diluted and basics
net loss per common share are the same.
The Company prepaid
$16,000 legal service fee to Michael William as of September 30, 2012.
The
inventory was valued at cost of purchase from US suppliers. As of September 30 2012, the Company have inventory of vegetable seeds
of $239,000.
The Company entered
into a lease for its corporate offices in under terms of non-cancelable operating leases. The lease term is from February 24, 2011
through February 29, 2013 and requires a $169 monthly lease payment, and this office is located at 700 Commerce Drive, STE 500,
Oak Brook IL 60523, USA.
The
companys comprehensive income is comprised of net income, unrealized gains and losses on marketable securities classified
foreign currency translation adjustments, and unrealized gains and losses on derivative financial instruments related to foreign
currency hedging.
The
Company is considered to be in the development stage as defined in Statement of Financial Accounting Standards (SFAS) ASC 915,
Development Stage Entities. The Company has devoted substantially all of its efforts to establishing
a new business and for which either of the following conditions exists: planned principal operations have not commenced; or the
planned principal operations have commenced, and rising of capital and attempting to raise sales.
In accordance with the FASB Accounting
Standards Codification (ASC) 605-15-25 Revenue Recognition for Sales of Product, the Company recognizes revenue
when it is realized or realizable and earned. The revenue from the product sales transaction shall be recognized at
time of sale if the following conditions are met:
∙ |
The sellers price to the buyer is substantially fixed or determinable at the date of sale. |
∙ |
The buyer has paid the seller, or the buyer is obligated to pay the seller and the obligation is not contingent on resale of the product. |
∙ |
The buyers obligation to the seller would not be changed in the event of theft or physical destruction or damage of the product. |
∙ |
The buyer acquiring the product for resale has economic substance apart from that provided by the seller. |
∙ |
The seller does not have significant obligations for future performance to directly bring about resale of the product by the buyer. |
∙ |
The amount of future returns can be reasonably estimated. |
Revenues include sales of seeds in Asia, Europe,
and North America.
The Company had total revenue of $178,000 for
the period of October 1, 2011 to September 30, 2012.
The Company accounts for stock issued for services
using the fair value method. In accordance with FASB ASC 718, Stock-Based Compensation, the measurement date of shares
issued for services is the date at which the counterpartys performance is complete.
On June 30, 2011, 344,495 shares was issued
to Michael Williams @ $0.1 per share for legal service value $34,450.
On July 16, 2012, 150,000 shares were issued
to Michael Williams for legal services of $30,000 at $0.20 per share.
On June 20, 2012, 25,000 shares were issued
to Pivo Associates for services of $5,000 at $0.20 per share.
The
Company has $80,000 unearned revenue from the customer Beijing Olive Seed Scientific Co., Ltd for the sale has not delivered or
completed as of September 30 2012.
Operation expense consists of selling, general
and administrative expenses.
For the year ended September 30, 2012 and 2011,
there was a total of $129,664 and $37,543 operating expenses respectively.
For the cumulative period from February 7,
2011 (Date of Inception) to September 30, 2012, there was a total of $167,207 operating expenses.
The Details were showed in Exhibit A.
The
preparation of financial statements in conformity with generally accepted accounting principles in the United States of America
requires management to make estimates and assumptions that affect certain amounts reported in the financial statements and disclosures. Accordingly,
actual results could differ from those estimates.
The
Company considers all highly-liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
As of September 30, 2012 and 2011, the company had cash and cash equivalents of $181,879 and $435,437 respectively.
The following pronouncements have become
effective during the period covered by these financial statements or will become effective after the end of the period covered
by these financial statements:
Pronouncement |
|
Issued |
|
Title |
ASC 605 |
|
October 2009 |
|
Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements a consensus of the FASB Emerging Issues Task Force |
ASC 860 |
|
December 2009 |
|
Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets |
ASC 505 |
|
January 2010 |
|
Accounting for Distributions to Shareholders with Components of Stock and Cash a consensus of the FASB Emerging Issues Task Force |
ASC 810 |
|
January 2010 |
|
Consolidation (Topic 810): Accounting and Reporting for Decreases in Ownership of a Subsidiary a Scope Clarification |
ASC 718 |
|
January 2010 |
|
Compensation Stock Compensation (Topic 718): Escrowed Share Arrangements and the Presumption of Compensation |
ASC 820 |
|
January 2010 |
|
Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements |
ASC 810 |
|
February 2010 |
|
Consolidation (Topic 810): Amendments for Certain Investment Funds |
ASC 815 |
|
March 2010 |
|
Derivatives and Hedging (Topic 815): Scope Exception Related to Embedded Credit Derivatives |
ASC-310 Receivables |
|
July 2010 |
|
For public entities, the disclosure as of the end of a reporting period are effective for interim and annual reporting periods ending on or after December 15, 2010. The disclosures about activity that occurs during a reporting period are effective for interim and annual reporting periods beginning on or after December 15, 2010. For nonpublic entities, the disclosures are effective for annual reporting period ending on or after December 15, 2011. |
Management does not anticipate that
the adoption of these standards will have a material impact on the financial statements.