Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2018

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Intercompany accounts and transactions have been eliminated.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that

may

affect the reported amounts of assets and liabilities and 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 these estimates.

Cash and Cash Equivalents, Policy [Policy Text Block]

Income Taxes

CannaMED accounts for income taxes in accordance with ASC

740,

Income Taxes (“ASC

740”

), which requires the recognition of deferred tax liabilities and assets at currently enacted tax rates for the expected future tax consequences of events that have been included in the financial statements or tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount that is more likely than

not

to be realized.

ASC

740

provides guidance on the accounting for uncertainty in income taxes recognized in a company’s financial statements. ASC

740

requires a company to determine whether it is more likely than

not

that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-

not

threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements.

Income Tax, Policy [Policy Text Block]

Cash and Cash Equivalents

Cash and cash equivalents includes all highly liquid instruments with an original maturity of

six

months or less as of

September 30, 2018.

The Company did

not

have cash equivalents as of

September 30, 2018

and

December 31, 2017.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high quality banking institutions. The Company did

not

have cash balances in excess of the Federal Deposit Insurance Corporation limit as of

September 30, 2018

and

December 31, 2017.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

The Company adopted ASC

820,

Fair Value Measurements and Disclosures (ASC

820

). ASC

820

defines fair value, establishes a

three

-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The

three

levels are defined as follows:

●

Level

inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

●

Level

inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

●

Level

inputs to the valuation methodology are unobservable and significant to the fair measurement.

The carrying value of cash, accounts payables and accrued expenses approximates their fair values due to their short-term maturities at

September 30, 2018

and

December 31, 2017.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Effective

January 1, 2018,

the Company adopted Accounting Standards Codification Topic

606,

Revenue from Contracts with Customers,

(ASC

606

). To determine revenue recognition for arrangements within the scope of ASC

606,

the Company performs the following

five

steps: (i) identify the contract(s) with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company is pre-revenue and has

outstanding contracts with customers.

Earnings Per Share, Policy [Policy Text Block]

Net Loss Per Share

Basic net loss per share is computed by dividing the net loss applicable to common shareholders by the weighted average number of shares of common stock outstanding for the period. Diluted loss per share is computed by dividing the loss applicable to common shareholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Due to the Company’s losses in the periods presented, the Company currently has

dilutive securities and as such, basic and diluted loss per share are the same for such periods. Year-to-date net (loss) per share was $(

0.01

) for the

nine

months ended

September 30, 2018.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

+ References + Details

CannaMED Enterprises, Inc. 10-Q