Quarterly report pursuant to Section 13 or 15(d)

CHANGE IN ACCOUNTING POLICY

v3.10.0.1
CHANGE IN ACCOUNTING POLICY
3 Months Ended
Jun. 30, 2018
Disclosure Text Block [Abstract]  
Accounting Changes and Error Corrections [Text Block]
2.
CHANGE IN ACCOUNTING POLICY
 
The FASB issued ASU No. 2017-11,
Earnings Per Share (Topic 260) Distinguishing Liabilities From Equity (Topic 480) Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments With Down Round Features II Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests With a Scope Exception
, allows a financial instrument with a down-round feature to no longer automatically be classified as a liability solely based on the existence of the down-round provision. The update also means the instrument would not have to be accounted for as a derivative and be subject to an updated fair value measurement each reporting period.
 
On consideration of the above factors, the Company elected to early adopt ASU 2017-11 on July 1, 2017. The ASU is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other organizations, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020.
 
The early adoption allows the Company to reduce the cost and complexity of updating the fair value measurement each reporting period and eliminate the unnecessary volatility in reported earnings created by the revaluation when the Company’s shares’ value changes.
 
The Company presented the change in accounting policy through the retrospective application of the new accounting principle to all prior periods, as described in ASU No. 250-10-45-5, Accounting Changes and Error Corrections.
 
The following financial statement line items for the periods indicated were affected by the change in accounting principle.
 
Income statement
 
 
 
Period ended June 30, 2017
 
 
 
As originally

reported
 
 
As adjusted
 
 
Effect of change
 
Sales
 
$
87,520
 
 
$
87,520
 
 
$
-
 
Cost of Sales
 
 
29,300
 
 
 
29,300
 
 
 
-
 
Total operating expenses
 
 
2,127,589
 
 
 
2,127,589
 
 
 
-
 
Total other expenses
 
 
175,953
 
 
 
171,149
 
 
 
(4,804
)
Net loss and comprehensive loss for the period
 
 
(2,245,322
)
 
 
(2,240,518
)
 
 
4,804
 
 
Statement of cash flows
 
 
 
As at June 30 2017
 
 
 
As originally

reported
 
 
As adjusted
 
 
Effect of change
 
Net loss for period
 
$
(2,245,322
)
 
$
(2,240,518
)
 
$
4,804
 
Adjustment for items not affecting cash and changes in non-cash working capital items
 
 
938,665
 
 
 
933,861
 
 
 
(4,804
)
Net cash used in operating activities
 
 
(1,306,657
)
 
 
(1,306,657
)
 
 
-
 
Net cash used in investing activities
 
 
(15,600
)
 
 
(15,600
)
 
 
-
 
Net cash provided by financing activities
 
 
1,625,038
 
 
 
1,625,038
 
 
 
-
 
Net increase in cash and cash equivalents for the period
 
 
302,781
 
 
 
302,781
 
 
 
-
 
Cash and cash equivalents, beginning of period
 
 
543,650
 
 
 
543,650
 
 
 
-
 
Cash and cash equivalents, end of period
 
 
846,431
 
 
 
846,431
 
 
 
-