Abbreviated Company Accounts - KENNEDY HOLDINGS (COLERAINE) LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts are prepared under the historical cost convention and comply with financial reporting standards of the Financial Reporting Council.

Turnover policy
Turnover is measured at the fair value of the consideration receivable and represents amounts receivable for goods and services provided in the normal course of business, net of rebates, discounts and value added tax. Sales of goods are recognised when goods are delivered and title has passed.

Tangible assets depreciation policy
Tangible fixed assets and depreciation
Tangible fixed assets are stated at valuation less depreciation. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Land and buildings - No depreciation charged on the basis of a high residual value

Valuation information and policy
Stock
Work in progress is valued at the lower of cost and net realisable value. Cost is defined as that expenditure which has been incurred in bringing the product/service to its present location and condition. Net realisable value is based on normal selling price, less further costs expected to be incurred to completion and disposal.

Other accounting policies
Taxation
The yearly charge for taxation is based on the profit for the year and is calculated with reference to the tax rates applying at the balance sheet date.

Going concern
The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future having funds to meet obligations as they fall due.

As a result of the ongoing economic crisis and its particular impact on the property sector, the company has reported losses during the period and the balance sheet reflects a significant downward revaluation of the company's land and buildings following valuations. The directors consider that the outlook for the property sector will remain challenging for some time to come, with significant constraints upon sales, lettings and rentals.

In addition the company's bank facilities have now expired. Whilst the directors have instituted measures to preserve cash and secure the necessary long-term funding, these circumstances create material uncertainty over future profitability and cash flow.

A Fixed Charge Receiver was appointed to the company on 11 April 2013.

The directors have concluded that the combination of these circumstances represents a material uncertainty that casts significant doubt upon the company's ability to continue as a going concern should support be withdrawn by the company's bankers, as agents of Cerberus. Nevertheless, after making enquiries and considering the uncertainties described above, the directors have a reasonable expectation that the company will have adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the financial statements.

Ultimate parent undertaking
Kennedy Group Holdings Limited, 7 Sandel Village Centre, Knocklynn Road, Coleraine is the ultimate parent company. Kennedy Holdings (Coleraine) Limited is a 100% subsidiary of Kennedy Group Holdings Limited.