Summary of Significant Accounting Policies: (i) Foreign Currency Translation (Policies)

6 Months Ended

Jun. 30, 2013

(i) Foreign currency translation

The accompanying consolidated financial statements are presented in United States dollars. The functional currency of the Company is the Hong Kong Dollar (HKD) and Renminbi (RMB). The consolidated financial statements are translated into United States dollars from RMB at period-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

The exchange rates used to translate amounts in HKD and RMB into USD for the purposes of preparing the consolidated financial statements were as follows:

	June 30, 2013	December 31, 2012	June 30, 2012
Twelve months ended HKD : USD exchange rate		7.7519
Six months ended HKD : USD exchange rate	7.75720		7.75750
Average six months ended HKD : USD exchange rate	7.75911		7.76156
	June 30, 2013	December 31, 2012	June 30, 2012
Twelve months ended RMB : USD exchange rate		6.3161
Six months ended RMB : USD exchange rate	6.18820		6.3197
Average six months ended RMB : USD exchange rate	6.24794		6.3255

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation. In addition, the current foreign exchange control policies applicable in PRC also restrict the transfer of assets or dividends outside the PRC.

- Definition

Disclosure of accounting policy for (1) transactions denominated in a currency other than the reporting enterprise's functional currency, (2) translating foreign currency financial statements that are incorporated into the financial statements of the reporting enterprise by consolidation, combination, or the equity method of accounting, and (3) remeasurement of the financial statements of a foreign reporting enterprise in a hyperinflationary economy.

+ References+ Details

ANTIVIRAL TECHNOLOGIES, INC. 10-Q