LUCAS_CONSTRUCTION_SOUTH_ - Accounts

The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover represents the value of work completed in the year, exclusive of Value Added Tax. In respect of contracts that fall substantially into two accounting periods, the company adopts SSAP9:Long Term Contracts. Turnover and profit is then recognised by reference to the estimated stage of completion of contracts, except where the profit on a contract cannot be foreseen with reasonable certainty. Amounts recoverable contracts, which are included in debtors, represents work done in excess of amounts invoiced. Payments on account, included in creditors, represent the excess of payments on account not offset against long term contract balances within work in progress. Full provision is made for all known or expected losses on individual contracts, immediately such losses are foreseen.the value of work completed in the year, exclusive of Value Added Tax.

In respect of contracts that fall substantially into two accounting periods, the company adopts SSAP9:Long Term Contracts. Turnover and profit is then recognised by reference to the estimated stage of completion of contracts, except where the profit on a contract cannot be foreseen with reasonable certainty.

Amounts recoverable contracts, which are included in debtors, represents work done in excess of amounts invoiced. Payments on account, included in creditors, represent the excess of payments on account not offset against long term contract balances within work in progress.

Full provision is made for all known or expected losses on individual contracts, immediately such losses are foreseen.

Deferred taxation 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, or a right to pay less or to receive more tax, with the following exceptions:

Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned.

However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold.

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.