| |
|
|
|
|
| 2. |
ACCOUNTING POLICIES |
|
|
|
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company’s financial statements. |
|
|
|
Statement of compliance |
|
The financial statements of the company for the year ended 30 June 2018 have been prepared in accordance with the provisions of FRS 102 Section 1A (Small Entities) and the Companies Act 2006. |
|
|
|
Basis of preparation |
|
The financial statements have been prepared under the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements. |
|
|
|
Cash flow statement |
|
The company has availed of the exemption in FRS 102 Section 1A from the requirement to prepare a Statement of Cash Flows because it is classified as a small company. |
|
|
|
Revenue |
|
Revenue comprises the invoice value of goods and services supplied by the company, exclusive of trade discounts and value added tax. Revenue is recognised upon the delivery of goods and services to the customer. |
|
|
|
Financial assets |
|
|
|
Current asset investments are stated at the lower of cost and net realisable value. |
|
|
|
|
|
Work in progress |
|
Work in progress is stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each contract to its present stage, plus an element of profit attributable to the current stage of completion. Net realisable value is based on estimated contract price less any further costs expected to be incurred to completion. |
|
|
|
Taxation |
|
Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Statement of Financial Position date. |
|
|
|
Foreign currencies |
|
Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Statement of Financial Position date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Income Statement. |
|
|
|
Share capital of the company |
|
|
|
Ordinary share capital |
|
The ordinary share capital of the company is presented as equity. |
