2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cryptocurrencies (Policies)
|9 Months Ended|
Jul. 31, 2022
The Company made investments in crypto currencies, including bitcoin and Ethereum, during the nine-months ended July 31, 2022 and 2021 of $135,528 and $148,362, respectively. Such amounts are included in current assets at original cost in the accompanying balance sheets, net of impairment. The Company also sold $165,143 of its portfolio of cryptocurrencies for the nine months ended July 31, 2022.
Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it
is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. During the nine months ended July 31, 2022, the Company recognized an impairment loss of $56,187 on its investment in cryptocurrencies.
Disclosure of accounting policy for finite-lived intangible assets. This accounting policy also might address: (1) the amortization method used; (2) the useful lives of such assets; and (3) how the entity assesses and measures impairment of such assets.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef