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STERNFORD LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2020
Sternford Ltd is a limited liability company incorporated in England and Wales. The registered office of the company was 2 Communication Road, Greenham Business Park, Newbury, RG19 6AB.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The directors have given an assurance that the net assets of the company will be maintained at a positive level. As a result they consider the company to be a going concern and the accounts have been drawn up on this basis.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
All intangible assets are conisdered to have a finite useful life. Intangible assets relate to intellecutal property rights in regards to the film. The film is expected to have a useful life of no more than 5 years.
The amoritsation of the intangible is allocated to reflect the pattern in which economic benefit is expected from that intangible, the majority being expected within the first year.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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