Sherwinco 100 Limited Accounts

1

Accounting policies

Basis of preparation

The accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets and in accordance with the accounting policies set out below.

Going Concern

The financial statements have been prepared on the going concern basis.

Revenue Recognition

Interest Income

Interest income and expenses are recognised in the interest statement for all interest bearing financial instruments using the effective interest method.

Intangible fixed assets

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the profit and loss account because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible timing differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

Freehold investment property

Investments

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

Trade and other debtors

Trade and other creditors

Foreign currencies

Leased assets

Where the company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to the Company are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs (see the accounting policy above).

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term.

Pensions

Provisions

2

Employees

2019

2018

Number

Number

The average number of persons employed during the year :

3

Investments

Other investments - Unlisted

Total

£

£

Cost or valuation

At 1 April 2018

At 31 March 2019

Net book values

At 31 March 2019

At 31 March 2018

4

Debtors

2019

2018

£

£

Trade debtors

5

Creditors:

amounts falling due within one year

2019

2018

£

£

Corporation tax

Loans from directors

Accruals and deferred income

6

Reserves

Profit and loss account

2019

2018

£

£

Balance at 1 April 2018

As previously stated

166,667

157,883

Prior year adjustment

19,000

-

As restated

185,667

157,883

Profit for the year

58,048

79,384

Dividends

(51,600)

(51,600)

Balance at 31 March 2018

192,115

185,667

The prior year adjustment relates to the correction of an error in the financial statements for the year year ended 31 March 2018, in which the figure included for dividends paid was overstated by £19,000.

7

Reserves

8

Dividends

2019

2018

£

£

Dividends for the period:

Dividends paid in the period

51,600

51,600

Dividends by type:

Equity dividends

51,600

51,600