Abbreviated Company Accounts - MORGAN GOODMAN HOLDINGS LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
Basis of Preparation
The abbreviated financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assetes and liabilities and investment properties measures at fair value through profit or loss.
The abbreviated financial statements are prepared in sterling, which is the functional currency of the entity.

Other accounting policies
Consolidation
The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a smell group.

Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively.
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Fixed Asset Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reveiwed for possible reversal at each reporting date.
When it is not possible to estimate the recoverable amount of an indiviual asset, an astimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

The results and capital and reserves for the period of the trading companies are as follows;

Peter James (Bridgegate Chemist) Limited, Capital and Reserves for the period ended 30.06.15 £1,559,770, for the year ended 31.12.14 £1,365,560. Profits for the period 30.06.15 £194,210, for the year ended 31.12.14 £327,395.