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THREE M'S HARWICH LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2022
Three M's Harwich Limited is a private company limited by shares incorporated in England and Wales. The registered office is Mitchellson House, Stanwell Road, Horton, Slough, Berkshire, SL3 9PF.
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:
At the balance sheet date the company's net liabilities exceeded its net assets by £128,209 (2021: £137,646). The company meets its day to day working capital requirements through loans provided by the shareholders and other creditors. The company has the ongoing support from the shareholders and directors. Thus, the directors continue to prepare the financial statements on a going concern basis.
Turnover represents proceeds from sale of developed residential properties which is recognised when the contractual arrangements with the purchaser become legally binding.
Rental income is recognised on a straight line basis over the term of the lease.
Interest income is recognised in profit or loss using the effective interest method.
Development land and properties are valued at the lower of cost and net realisable value. Cost for this purpose comprises the purchase of land and buildings, development expenditure and overheads.
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
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