Abbreviated Company Accounts - W & A PROPERTY DEVELOPMENTS 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 Companies Act 2006 and the financial reporting standards. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company’s financial statements.

Turnover policy
The turnover shown in the profit and loss account represents amounts received or receivable for goods and services provided in the normal course of business, exclusive of Value Added Tax. Turnover is recognised over the period in which rentals relate.

Other accounting policies
Cash flow statement
The company has availed of the exemption in FRS 1 from the requirement to produce a cash flow statement because it is classed as a small company.

Investment properties
Revalued investment properties are not depreciated or amortised. Where the valuation indicates a permanent diminution in the value of the property, the permanent diminution is charged to the profit and loss account. All other fluctuations in value are transferred to a revaluation reserve.

No depreciation is charged on investment property interest. This constitutes a departure from the statutory rules requiring fixed assets to be depreciated over their useful economic lives and is not necessary to enable the financial statements to give a true and fair view, in accordance with Statement of Standard Accounting Practice No. - 19 Accounting for Investment Properties.

Taxation
Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements.

Deferred tax is measure on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantially enacted by the balance sheet date.

Going concern
The Financial Statements are prepared on the going concern basis notwithstanding that the company has a balance sheet deficit of £526,505 at the year end. The company has the continued support of fellow group companies and the director and the company continues to meet its obligations in respect of bank facilities. As such the director considers the going concern assumption to be appropriate.