Loans Payable
 12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
Note 4. Loans Payable
    December 31,     December 31,  
    2011     2010  
             
Short term loans   $ 833,195       817,836  
    $ 833,195       817,836  

 

As at December 31, 2011, the Company has short term loans on demand of $833,195. The loans bear interest at the rate of 0.5% to 6% per annum.

 

    December 31,     December 31,  
    2011     2010  
             
Long term loans            
             
Convertible debts issued to a non related party   $ 60,000       60,000  
Convertible debts issued to former director     250,000       250,000  
    $ 310,000       310,000  

 

    December 31,     December 31,  
    2011     2010  
             
Convertible debt            
             
Beginning balance of period   $ 310,000       581,000  
          Less : Debentures converted to common shares     0       (271,000 )
Ending balance of period   $ 310,000       310,000  

 

The embedded beneficial conversion features present in the convertible debenture is valued separately at issuance and recognized and measured by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital. That amount is calculated as the difference between the conversion price and the fair value of the common stock into which the debenture is convertible, multiplied by the no. of shares. The intrinsic value cannot exceed the proceeds.