Jon Cuff Electrical Limited - Accounts

The accounts have been prepared under the historical cost convention and in accordance with FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by Section 1A of the standard)

The director has considered the impact of COVID-19 and following the relaxation of the regulations he has the opinion that it now has very little impact on the financial position of the company. The director also has the opinion that the company is in a strong financial position with the resources in place to manage its business risks for the foreseeable future. Therefore, the director continues to adopt the going concern basis of accounting for preparing the financial statements.

Turnover comprises of the invoiced value of goods and services supplied by the company, net of Value Added Tax and trade discounts. Turnover is recognised in the accounts when the company becomes entitled to a consideration for the services performed or for the goods sold at which point an invoice can be issued. An invoice for services is issued following the completion of the service performed and an invoice for the sale of goods is issued when the risks and rewards of ownership of those goods have passed to the buyer. A provision is made at the reporting date for services that have commenced but have not been completed which is based on the percentage of work completed at the reporting date.

Rentals payable under operating leases are charged against income on a straight-line basis over the lease term.

The finance element of the rental / hire payment is charged to the income statement using an effective rate of interest basis.

The current tax position is based on the taxable profit or loss for the period. The taxable profit or loss may differ from that reported in the financial statements because adjustments are made for items that are treated differently for taxation compared to their treatment for accounting purposes. The company's liability or refund for the current tax year is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and their treatment for accounting purposes. The deferred tax balance has not been discounted.

Dividends that are deemed to have been voted and paid in the period are included in these financial statements. Proposed dividends are only included as liabilities in the financial statements when their payment has been approved by the shareholders prior to the balance sheet date.

Intangible assets (including purchased goodwill and patents) are amortised at rates calculated to write off the assets on a straight line basis over their estimated useful economic lives. Impairment of intangible assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.

Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:

Assets held under finance lease or hire purchase contracts i.e. those contracts where substantially all the risks and rewards of ownership have passed to the company, are included in the appropriate category of tangible fixed assets and depreciated over the shorter of the lease term and their estimated expected useful lives.
Future obligations under such contracts are included in creditors net of the finance charge allocated to future periods.

Fixed asset investments are stated in the financial statements at their fair market value. Fair market value is based on the expected price that could be achieved on the open market at the reporting date. Market conditions or third-party evidence will be considered when assessing a fair market value. 

Stocks have been valued at the lower of cost and expected selling price less costs to sell. Costs to sell include the relevant proportion of overheads according to the stage of completion.
Work in progress is valued at the expected selling price and is dependent on the percentage of work completed at the period end and after making allowances for unexpected costs for completion.

Provisions are recognised when the company has a present obligation because of a past event which it is more probable than not will result in an outflow of economic benefits that can be reasonably estimated.

The company has elected to apply the provisions of Section 11 Basic Financial Instruments and Section 12 Other Financial Instruments Issues of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial instruments included within these financial statements are valued at the transaction price applicable at the time of the transaction.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.