Abbreviated Company Accounts - CUBITT CONSULTING LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover policy
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

Tangible assets depreciation policy
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Leasehold Property - over life of the lease
Plant & Machinery - 25%-50% straight line

Intangible assets amortisation policy
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the Profit and loss account over its estimated economic life.

Valuation information and policy
All fixed assets are initially recorded at cost.

Other accounting policies
Going concern

The financial statements have been prepared on the going concern basis which assumes that the company will continue its activities for the foreseeable future.

The director in reaching this assessment has prepared cash flow forecasts which consider the future financial requirements of the company. These forecasts suggest that the company will have access to sufficient financial resources in order for it to be able to continue to operate for the foreseeable future. Accordingly the director has prepared these financial statements on the going concern basis.

Consolidation

In the opinion of the director, the company and its subsidiary undertakings comprise a small group. The company has therefore taken advantage of the exemption provided by Section 398 of the Companies Act 2006 not to prepare group accounts.

Leasing and hire purchase commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

4Fixed assets Investments
The company owns 100% of the issued share capital of Newton Search Associates Limited. The company still holds these at 31st December 2014. Newton Search Associates Limited has been incorporated in England and Wales and is considered to be dormant.

The ordinary shares and partner shares constitute seperate classes of shares and rank pari passu in all respects except:

1. The partner shares confer no right to dividends or distributions declared or paid by the company.

2. The holders of partner shares are not entitled to receive notice of, to attend, or vote at any general meetings of the company; and

3. On a return of assets or on liquidation, reduction of capital or otherwise, the holders of the partner shares are entitled to a maximum of the amounts paid up or credited as paid up on issue of such shares including any premiums. Otherwise the holders of partner shares shall have no rights in any surplus.

7Transactions with directors

The director maintains a loan account with the company. At the start of the year, the director owed the company £1,674,507. During the year, a further £122,876 was advanced to the director, and repayments were received totalling £23,904. Interest was charged on the balance owed at 3.25%, totalling £58,842. At the year-end, the director owed the company £1,832,321.