Quarterly report pursuant to sections 13 or 15(d)

Note 4 - Goodwill

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Note 4 - Goodwill
6 Months Ended
Sep. 30, 2012
Notes to Financial Statements  
Goodwill

Note 4 – Goodwill

 

On June 30, 2003, pursuant to the Asset Purchase and Security Agreement (“Purchase Agreement”), the Company’s sole stockholder purchased all of the furniture, fixture and equipment and the rights, titles and interest in the coffee house business from the then sole owner of the coffee house for total consideration of $70,000.

 

The acquisition of the coffee house’s assets, including furniture, fixture and equipment, was accounted for using the purchase method of accounting by allocating the purchase price over the assets acquired based on their estimated fair values at the date of acquisition. The excess of the purchase price over the assets acquired of $30,000 was recorded as goodwill. The purchase price has been allocated to the assets and liabilities as follows:

 

  Book Value     Fair Value  Adjustment     Fair Market Value  
                       
Furniture, fixture and equipment $ 40,000     $       $ 40,000  
                       
Goodwill           30,000       30,000  
                       
Total   40,000       30,000       70,000  
                       
Purchase price     $ 40,000     $ 30,000     $ 70,000  

 

 

Goodwill, stated at cost, less accumulated impairment, if any, consisted of the following:

 

    September 30, 2012     March 31, 2012  
                 
Goodwill   $ 30,000     $ 30,000  
                 
Accumulated impairment     (- )     (- )
             
    $ 30,000     $ 30,000  
             

 

 

Impairment

 

The management of the Company determined that there was no impairment of goodwill for the interim period ended September 30, 2012 and 2011.