Acorn Floors & Furnishings Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03916603 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MAY 2020

FOR

ACORN FLOORS & FURNISHINGS LIMITED

Page

Company Information

1

Abridged Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mr C H Ferguson

Mrs J E Ferguson

Mr S J Sherrington

Mr A C Ferguson

Mrs M Delaney

SECRETARY:

Mrs K E Parry

REGISTERED OFFICE:

c/o Michael Heaven & Associates Limited

47 Calthorpe Road

Edgbaston

BIRMINGHAM

West Midlands

B15 1TH

REGISTERED NUMBER:

03916603 (England and Wales)

ACCOUNTANTS:

Michael Heaven & Associates Limited

Chartered Certified Accountants

47 Calthorpe Road

Edgbaston

BIRMINGHAM

B15 1TH

INCORPORATED:

31st January 2000

FIXED ASSETS

Tangible assets

4

29,678

33,485

CURRENT ASSETS

Stocks

5,000

10,000

Debtors

8,442

27,714

Cash at bank

77,184

21,407

90,626

59,121

CREDITORS

Amounts falling due within one year

63,063

85,313

NET CURRENT ASSETS/(LIABILITIES)

27,563

(26,192

)

TOTAL ASSETS LESS CURRENT LIABILITIES

57,241

7,293

CREDITORS

Amounts falling due after more than one year

5

(50,001

)

-

PROVISIONS FOR LIABILITIES

8

(5,639

)

(5,692

)

NET ASSETS

1,601

1,601

CAPITAL AND RESERVES

Called up share capital

9

1,600

1,600

Retained earnings

1

1

SHAREHOLDERS' FUNDS

1,601

1,601

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st May 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st May 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

All the members have consented to the preparation of an abridged Income Statement and an abridged Balance Sheet for the year ended 31st May 2020 in accordance with Section 444(2A) of the Companies Act 2006.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 6th January 2021 and were signed on its behalf by:

Mr C H Ferguson - Director

1.	STATUTORY INFORMATION

Acorn Floors & Furnishings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents the value of goods and services provided under contracts to the extent that there is a right to consideration and is recorded at the value of the consideration due.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Computer equipment - 25% straight line

Plant and machinery - 15% reducing balance

Motor vehicles - 15% reducing balance

Government grants

Government grants are accounted for under both the performance and accruals model. Grants under the accruals model in relation to expenditure are credited when the expenditure is charged to profit and loss. Grants under the performance model are recognised when the performance related conditions are met. The government grants recognised in the financial statements are as follows:

- Job retention scheme - £8,306 (accruals model)

- Small business grant - £10,000 (performance model)

The company has also received a bounce back loan for the amount of £50,000.

Stocks

Stock is valued at the lower of cost and net realisable value. Cost is determined on a first in first out basis. Net realisable value represents estimated selling price less costs to complete and sell. Provision is made for slow moving, obsolete or damaged stock where the net realisable value is less than cost.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and loans from related parties.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Hire purchase and leasing commitments

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases.

The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments.

Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life.

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

Pension costs and other post-retirement benefits

The company contributes into the director's defined contribution pension scheme. Contributions payable to the director's pension scheme are charged to the profit and loss account in the period to which they relate.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 1 (2019 - 1 ) .

4.	TANGIBLE FIXED ASSETS

Totals

£

COST

At 1st June 2019

50,927

Additions

1,879

At 31st May 2020

52,806

DEPRECIATION

At 1st June 2019

17,442

Charge for year

5,686

At 31st May 2020

23,128

NET BOOK VALUE

At 31st May 2020

29,678

At 31st May 2019

33,485

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Totals

£

COST

At 1st June 2019

15,785

Transfer to ownership

(15,785

)

At 31st May 2020

-

DEPRECIATION

At 1st June 2019

6,091

Charge for year

1,091

Transfer to ownership

(7,182

)

At 31st May 2020

-

NET BOOK VALUE

At 31st May 2020

-

At 31st May 2019

9,694

5.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN FIVE YEARS

2020

2019

£

£

Repayable by instalments

Bank loans

10,506

-

6.

LOANS

An analysis of the maturity of loans is given below:

2020

2019

£

£

Amounts falling due between one and two years:

Bank loans

9,507

-

Amounts falling due between two and five years:

Bank loans

29,988

-

Amounts falling due in more than five years:

Repayable by instalments

Bank loans

10,506

-

7.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2020

2019

£

£

Net obligations repayable:

Within one year

-

3,443

Non-cancellable

operating leases

2020

2019

£

£

Within one year

8,100

8,100

8.	PROVISIONS FOR LIABILITIES

2020

2019

£

£

Deferred tax

5,639

5,692

Deferred

tax

£

Balance at 1st June 2019

5,692

Accelerated capital allowances

(53

)

Balance at 31st May 2020

5,639

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

20

Ordinary A

£1

20

50

(2019 - 50 )

20

Ordinary B

£1

20

50

(2019 - 50 )

20

Ordinary C

£1

20

-

20

Ordinary D

£1

20

-

500

Ordinary E

£1

500

500

500

Ordinary F

£1

500

500

500

Ordinary G

£1

500

500

20

Ordinary H

£1

20

-

1,600

1,600

Allotted and issued:

Number:

Class:

Nominal

2020

2019

value:

£

£

20

Ordinary C

£1

20

-

20

Ordinary D

£1

20

-

40

-

10.	RELATED PARTY DISCLOSURES

At the year end the amounts due to the directors' totalled £40,867 (2019 - £54,149). The loans are interest free and repayable upon demand.