Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies: Fair Value of Financial Instruments Policy (Policies)

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Summary of Significant Accounting Policies: Fair Value of Financial Instruments Policy (Policies)
6 Months Ended
Jun. 30, 2017
Policies  
Fair Value of Financial Instruments Policy

Fair value of financial instruments

We account for non-recurring fair value measurements of our non-financial assets and liabilities in accordance with ASC 820-10 Fair Value Measurement. This guidance defines fair value, establishes a framework for measuring fair value and addresses required disclosures about fair value measurements. This standard establishes a three-level hierarchy for fair value measurements based upon the significant inputs used to determine fair value. Observable inputs are those which are obtained from market participants external to the Company while unobservable inputs are generally developed internally, utilizing management’s estimates, assumptions and specific knowledge of the assets/liabilities and related markets. The three levels are defined as follows:

 

·      Level 1 - Valuation is based on quoted prices in active markets for identical assets and liabilities.

 

·      Level 2 - Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active, or by model-based techniques in which all significant inputs are observable in the market.

 

·      Level 3 - Valuation is derived from model-based techniques in which at least one significant input is unobservable and based on the company’s own estimates about the assumptions that market participants would use to value the asset or liability.

 

If the only observable inputs are from inactive markets or for transactions which the Company evaluates as “distressed”, the use of Level 1 inputs should be modified by the company to properly address these factors, or the reliance of such inputs may be limited, with a greater weight attributed to Level 3 inputs.

 

Due to the short-term nature of our financial assets and liabilities, we consider their carrying amounts to approximate fair value.