|
Note 1 - Nature of Business and Significant Accounting Policies
|
3 Months Ended | ||||
|---|---|---|---|---|---|
|
Aug. 31, 2013
|
|||||
| Accounting Policies [Abstract] | |||||
| Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] |
Note
1 – Nature of Business and Significant Accounting
Policies
Nature
of Business
Adelt
Design, Inc. (“The Company”) was incorporated in
the state of Nevada on March 31, 2011 to manufacture carpet
binding art.
These
statements reflect all adjustments, consisting of normal
recurring adjustments, which in the opinion of management are
necessary for fair presentation of the information contained
therein.
The
Company has adopted a fiscal year end of May 31st.
Development
Stage Company
The
Company is currently considered a development stage company
as defined by FASB ASC 915-10-05. As a development stage
enterprise, the Company discloses the deficit accumulated
during the development stage and the cumulative statements of
operations and cash flows from inception to the current
balance sheet date. An entity remains in the development
stage until such time as, among other factors, revenues have
been realized. To date, the development stage of the
Company’s operations consists of developing the
business model and marketing concepts.
Use of
Estimates
The
preparation of financial statements in conformity with
accounting principles generally accepted in the United States
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, and
the disclosure 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 differ from those estimates.
Cash and
Cash Equivalents
Cash
and equivalents include investments with initial maturities
of three months or less. The Company maintains its
cash balances at credit-worthy financial institutions that
are insured by the Federal Deposit Insurance Corporation
("FDIC") up to $250,000. Deposits with these banks
may exceed the amount of insurance provided on such deposits;
however, these deposits typically may be redeemed upon demand
and, therefore, bear minimal risk. The Company did not have
any cash equivalents at August 31, 2013 and May 31,
2013.
Advertising
and Promotion
All
costs associated with advertising and promoting products are
expensed as incurred.
Income
Taxes
The
Company accounts for income taxes using the asset and
liability method, which requires the establishment of
deferred tax assets and liabilities for the temporary
differences between the financial reporting basis and the tax
basis of the Company’s assets and liabilities at
enacted tax rates expected to be in effect when such amounts
are realized or settled. The effect on deferred tax assets
and liabilities of a change in tax rates is recognized in
income in the period that includes the enactment
date. A valuation allowance is provided to the
extent deferred tax assets may not be recoverable after
consideration of the future reversal of deferred tax
liabilities, tax planning strategies, and projected future
taxable income.
Segment
Reporting
Under
FASB ASC 280-10-50, the Company operates as a single segment
and will evaluate additional segment disclosure requirements
as it expands its operations.
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 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 items that
required fair value measurement on a recurring basis.
Revenue
Recognition
For
revenue from product sales, the Company recognizes revenue
using four basic criteria that must be met before revenue can
be recognized: (1) persuasive evidence of an arrangement
exists; (2) delivery has occurred; (3) the selling price is
fixed and determinable; and (4) collectability is reasonably
assured. Determination of criteria (3) and (4) are based on
management’s judgment regarding the fixed nature of the
selling prices of the products delivered and the
collectability of those amounts. Provisions for discounts and
rebates to customers, estimated returns and allowances, and
other adjustments are provided for in the same period the
related sales are recorded. The Company defers any revenue
for which the product has not been delivered or is subject to
refund until such time that the Company and the customer
jointly determine that the product has been delivered or no
refund will be required.
The
Company has not generated revenues to date.
Basic
and Diluted Loss Per Share
The
basic net loss per common share is computed by dividing the
net loss by the weighted average number of common shares
outstanding. Diluted net loss per common share is computed by
dividing the net loss adjusted on an “as if
converted” basis, by the weighted average number of
common shares outstanding plus potential dilutive securities.
For the periods presented, there were no outstanding
potential common stock equivalents and therefore basic and
diluted earnings per share result in the same figure.
Stock-Based
Compensation
The
Company adopted FASB guidance on stock based compensation
upon inception on March 31, 2011. Under FASB ASC 718-10-30-2,
all share-based payments to employees, including grants of
employee stock options, to be recognized in the income
statement based on their fair values. Pro forma disclosure is
no longer an alternative. The Company did not issue any stock
and stock options for services and compensation for the
period from March 31, 2011 (Inception) through May 31,
2013.
Recent
Accounting Pronouncements
In
February 2013, the Financial Accounting Standards Board
(FASB) issued Accounting Standards Update (ASU) No. 2013-02,
Comprehensive
Income (Topic 220): Reporting of Amounts Reclassified Out of
Accumulated Other Comprehensive Income, 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:
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.
In
January 2013, the FASB issued ASU No. 2013-01, Balance Sheet
(Topic 210): Clarifying the Scope of Disclosures about
Offsetting Assets and Liabilities, 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.
In
October 2012, the FASB issued Accounting Standards Update ASU
2012-04, “Technical Corrections and Improvements”
in Accounting Standards Update No. 2012-04. The amendments in
this update cover a wide range of Topics in the Accounting
Standards Codification. These amendments include technical
corrections and improvements to the Accounting Standards
Codification and conforming amendments related to fair value
measurements. The amendments in this update will be effective
for fiscal periods beginning after December 15, 2012. The
adoption of ASU 2012-04 is not expected to have a material
impact on our financial position or results of
operations.
In
August 2012, the FASB issued ASU 2012-03, “Technical
Amendments and Corrections to SEC Sections: Amendments to SEC
Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB)
No. 114, Technical Amendments Pursuant to SEC Release No.
33-9250, and Corrections Related to FASB Accounting Standards
Update 2010-22 (SEC Update)” in Accounting Standards
Update No. 2012-03. This update amends various SEC paragraphs
pursuant to the issuance of SAB No. 114. The adoption of ASU
2012-03 is not expected to have a material impact on our
financial position or results of operations.
In
July 2012, the FASB issued ASU 2012-02, “Intangibles
– Goodwill and Other (Topic 350): Testing
Indefinite-Lived Intangible Assets for Impairment” in
Accounting Standards Update No. 2012-02. This update amends
ASU 2011-08, Intangibles
– Goodwill and Other (Topic 350): Testing
Indefinite-Lived Intangible Assets for Impairment and
permits an entity first to assess qualitative factors to
determine whether it is more likely than not that an
indefinite-lived intangible asset is impaired as a basis for
determining whether it is necessary to perform the
quantitative impairment test in accordance with Subtopic
350-30, Intangibles -
Goodwill and Other - General Intangibles Other than
Goodwill. The amendments are effective for annual and
interim impairment tests performed for fiscal years beginning
after September 15, 2012. Early adoption is permitted,
including for annual and interim impairment tests performed
as of a date before July 27, 2012, if a public entity’s
financial statements for the most recent annual or interim
period have not yet been issued or, for nonpublic entities,
have not yet been made available for issuance. The adoption
of ASU 2012-02 has not had a material impact on our financial
position or results of operations.
|