American
Paramount Gold Corp., a Nevada corporation, (the "Company") was incorporated in the State of Nevada on July 20, 2006.
The Company was formed to engage in the acquisition, exploration and development of natural resource properties.
Unaudited
Interim Financial Statements
The
unaudited interim financial statements of the Company have been prepared in accordance with United States generally accepted accounting
principles ("GAAP") for interim financial information and the rules and regulations of the Securities and Exchange Commission
("SEC"). They do not include all information and footnotes required by GAAP for complete financial statements. Except
as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements
for the year ended August 31, 2013, included in the Company's Annual Report on Form 10-K, filed with the SEC. The interim unaudited
financial statements should be read in conjunction with those audited financial statements included in Form 10-K. In the opinion
of management, all adjustments considered necessary for fair presentation, consisting solely of normal recurring adjustments,
have been made. Operating results for the nine month period ended May 31, 2014 are not necessarily indicative of the results that
may be expected for the year ending August 31, 2014.
Going
Concern
The
accompanying unaudited interim financial statements have been prepared assuming the Company will continue as a going concern.
Continuation as a going concern is dependent upon the ability of the Company to obtain the necessary obligations and pay its liabilities
arising from normal business operations when they come due and ultimately upon its ability to achieve profitable operations. The
outcome of these matters cannot be predicted with any certainty at this time and raise substantial doubt that the Company will
be able to continue as a going concern. These unaudited interim financial statements do not include any adjustments to the amounts
and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern.
Recent
Accounting Pronouncements
The
following are recent FASB accounting pronouncements, which may have an impact on the Company's future financial statements:
"Income
Taxes (ASC Topic 740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carry-forward, a Similar Tax Loss,
or a Tax Credit Carry-forward Exists" ("ASU 2013-11") was issued during July 2013. FASB issued guidance on
how to present an unrecognized tax benefit. The guidance is effective for annual periods beginning after December 15, 2013 for
public companies. The Company has adopted this pronouncement. The adoption of ASC Topic 740 did not have a significant impact
on the Company's results of operations, financial performance or cash flows.
In
June 2014, the FASB issued ASU No. 2014-10, "Development Stage Entities (Topic 915): Elimination of Certain Financial
Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation." This
ASU is intended to improve financial reporting by reducing the cost and complexity associated with the incremental reporting requirements
for development stage entities. In addition, the amendments eliminate the requirements for development stage entities to (1) present
inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements
as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is
engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it
had been in the development stage. As of the first annual period beginning after December 15, 2014, the presentation and disclosure
requirements in Topic 915 will no longer be required. The revised consolidation standards are effective one year later, in annual
periods beginning after December 15, 2015. The Company has early adopted these changes and removed inception-to-date information
and no longer describes as an exploration stage entity.
In August 2014, the FASB issued
ASU No. 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties
about an Entity's Ability to Continue as a Going Concern." This ASU is intended to define management's responsibility
to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related
footnote disclosures. Specifically, ASU 2014-15 provides a definition of the term substantial doubt and requires an assessment
for a period of one year after the date that the financial statements are issued (or available to be issued). It also requires
certain disclosures when substantial doubt is alleviated as a result of consideration of management's plans and requires an express
statement and other disclosures when substantial doubt is not alleviated. The new standard will be effective for annual reporting
periods, including interim periods within those annual periods, beginning after December 15, 2016, with early adoption permitted. The
Company is currently evaluating the impact of this standard on its financial statements.
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