Income taxes

12 Months Ended

Apr. 30, 2012

Note 9 – Income taxes

The Company and its subsidiaries file a consolidated federal income tax return.

The Company's effective income tax rate of 34% for the years ended April 30, 2012 and 2011 respectively differed from the federal statutory rate due to valuation adjustments of 34% for the years ended April 30, 2012 and 2011 respectively.

The tax accruals are reflected as follows:

For the year ended April 30,	2012				2011

Income taxes (benefit)		$	(8,449,000	)		$	(2,441,000	)
Change in valuation allowance			8,449,000				2,441,000

		$	0			$	0

Deferred tax assets and liabilities are as follows as of April 30:

	2012				2011

Deferred tax assets relating to:
Net operating loss carryforward		$	18,743,000			$	10,294,000

Less valuation allowance			(18,743,000	)			(10,294,000	)

Total deferred tax asset			0				0

A valuation allowance for deferred tax assets is required when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of this deferred tax asset depends on the Company's ability to generate sufficient taxable income in the future. Management believes it is more likely than not that the net deferred tax asset will not be realized by future operating results. The valuation allowance increased by approximately$8.4 million, and $2.4 million for the years ended April 30, 2012and 2011, respectively.

At April 30, 2011, the Company had net operating loss carry-forwards for federal income tax purposes of approximately $18.7 million, to expire in years 2018 through 2031.

The Company routinely assesses potential uncertain tax positions and, if required, establishes accruals for such amounts. Only tax positions that meet the more-likely-than-not recognition threshold are recorded.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-Paragraph 43, 44, 45, 46, 47, 48, 49

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

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+ Details

SUN RIVER ENERGY, INC 10-K/A