Notes
to the Financial Statements
February
29, 2016
(Expressed
in US dollars)
(unaudited)
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1.
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Nature of Operations and Continuance of Business
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Yanex
Group, Inc. (the “Company”) was incorporated in the State of Nevada on November 18, 2010. The Company business is
to provide services in concept architecture, interior design projects and related services in Germany, and eventually expand into
Europe and other countries. The Company is a start-up company.
These
financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its
assets and discharge its liabilities in the normal course of business. As of February 29, 2016, the Company has not recognized
any revenue and has an accumulated deficit of $165,711. The continuation of the Company as a going concern is dependent upon the
continued financial support from its management, and its ability to identify future investment opportunities and obtain the necessary
debt or equity financing, and generating profitable operations from the Company’s future operations. These factors raise
substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include
any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might
be necessary should the Company be unable to continue as a going concern.
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2.
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Significant
Accounting Policies
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(a)
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Interim
Financial Statements
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These
interim unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United
States for interim financial information. They do not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with
the financial statements and accompanying notes filed with the U.S. Securities and Exchange Commission in the Company’s
Annual Report on Form 10-K for the fiscal year ended May 31, 2015.
The
financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that,
in the opinion of management, are necessary to present fairly the Company’s financial position at February 29, 2016, and
the results of its operations and cash flows for the nine month period ended February 29, 2016. The results of operations for
the period ended February 29, 2016 are not necessarily indicative of the results to be expected for future quarters or the full
year.
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(b)
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Basis
of Presentation
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The
financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United
States and are expressed in US dollars.
The
preparation of financial statements in conformity with accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported accounts of revenues
and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred
income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical
experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying values of
assets
and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced
by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences
between the estimates and the actual results, future results of operations will be affected.
YANEX
GROUP, INC.
Notes
to the Financial Statements
February
29, 2016
(Expressed
in US dollars)
(unaudited)
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2.
|
Significant
Accounting Policies
(continued)
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(d)
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Cash
and cash equivalents
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The
Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.
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(e)
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Financial
Instruments
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Pursuant
to ASC 820, “Fair Value Measurements and Disclosures”, an entity is required to maximize the use of observable inputs
and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the
level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization
within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC
820 prioritizes the inputs into three levels that may be used to measure fair value:
Level
1
Level
1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.
Level
2
Level
2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability
such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in
markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant
inputs are observable or can be derived principally from, or corroborated by, observable market data.
Level
3
Level
3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to
the measurement of the fair value of the assets or liabilities.
The
Company’s financial instruments consist principally of cash, amounts due from related parties, accounts payable, and accrued
liabilities. Pursuant to ASC 820 and 825, the fair value of our cash is determined based on “Level 1” inputs, which
consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial
instruments approximate their current fair values because of their nature and respective maturity dates or durations.
The
Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Income Taxes”.
The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences
of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax
credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will
be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets
to the amount that is believed more likely than not to be realized.
YANEX
GROUP, INC.
Notes
to the Financial Statements
February
29, 2016
(Expressed
in US dollars)
(unaudited)
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2.
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Significant
Accounting Policies
(continued)
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ASC
220, “Comprehensive Income”, establishes standards for the reporting and display of comprehensive loss and its components
in the financial statements. As of February 29, 2016 and May 31, 2015, the Company has no items that represent comprehensive income
or loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.
The
Company computes net loss per share in accordance with ASC 260, “Earnings per Share”. ASC 260 requires presentation
of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by
dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator)
during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury
stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price
for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants.
Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of February 29, 2016 and May 31, 2015,
the Company did not have any potentially dilutive shares.
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(i)
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Recent
Accounting Pronouncements
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The
Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact
on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting
pronouncements that have been issued that might have a material impact on its financial position or results of operations.
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3.
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Related
Party Transactions
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As
at February 29, 2016, $32,900 (February 28, 2015 – $32,900) is owed to a Director of the Company, which is unsecured, non-interest
bearing, and due on demand.
The
Company has 75,000,000 shares of $0.001 par value common stock authorized.
As
of February 29, 2016 there were 3,048,000 shares of common stock issued and outstanding.
Subsequent
to February 29, 2016, the Company received a $24,970 loan from a Director,
which
is unsecured, non-interest bearing, and due on demand.
In
accordance with ASC 855-10, the Company has analyzed its operations subsequent to November 30, 2015 to the date these financial
statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial
statements other than the event discussed above.