E.H. Crack & Sons Limited - Period Ending 2018-12-03

For the financial year ending 3 December 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The tax expense for the period comprises tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Stock represents the accumulated cost of the property development which is currently held for sale. Stock is valued at the lower of cost and net realisable value, after due regard for any impairment. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

A provision of £253,500 exists in respect of the remediation of the settling pond owned as part of the company's land held in stock. The Environmental Agency state that the work is mandatory and must be a "cementation type solution". This provision is not fully covered by liquid assets and so it is unlikely that the full cost will be covered until the eventual sale of the tannery for development.