Abbreviated Company Accounts - DOLGAN PROPERTIES LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts 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 represents amounts receivable for goods and services net of VAT. Turnover is recognised in the period in which the income relates.

Tangible assets depreciation policy
Investment properties are stated at open market value. In accordance with SSAP 19 Investment properties are not depreciated. This treatment is a departure from the requirements of the Companies Act 2006 concerning depreciation of fixed assets, however, these properties are not held for consumption but for investment and the director considers that systematic annual depreciation would be inappropriate. The accounting policy adopted is therefore necessary for the accounts to give a true and fair view. Depreciation or amortisation is only one of the many factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be separately identified or quantified.

The market value of the investment property is determined by the director on an annual basis. The valuations are the director's best estimate after considering market rents, forecast growth rates, estimated yields and recent comparable market transactions on arm's length terms.

Other accounting policies
Going concern
The company's business activity involves investment in prime real estate. Economic conditions continue to be challenging but the company remains profitable.

The director of the company continues to monitor the impact of the economic environment on the business and believes its property portfolio will continue to generate broadly the equivalent levels of income. In addition, the director continues to actively explore opportunities to repay or refinance borrowings, where facilities have expired.

The company meets its day to day working capital requirements from its own resources and meets its longer term funding requirements through bank loans. The company's existing bank facilities have expired, though the company continues to service the loan. Whilst the funder has not yet confirmed it will continue to make the facility available, the director has a reasonable expectation suitable arrangements will be agreed.

The director has concluded that the above factor represent a material uncertainty. The ongoing support of the company's funder is fundamental to the continued application of the going concern assumption in order for the company to realise its assets and discharge its liabilities in the ordinary course of business.

After making enquiries, the director has formed a judgment at the time of approving the financial statements, that the company will have adequate resources to continue in operational existence for the foreseeable future and that it is therefore appropriate to prepare financial statements on a going concern basis.

Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).

Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

Creditors: amounts falling due within one year
The bank loan is secured by:
A first legal charge over the assets of the company.