Abbreviated Company Accounts - ALLIANCE CARS CARDIFF 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 net invoiced sales of goods, excluding value added tax.

Tangible assets depreciation policy
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery etc - 25% on cost and 20% on cost

Other accounting policies
STOCKS
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

DEFERRED TAX
Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred taxation is accounted for at expected tax rates on all differences arising from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements. A deferred tax asset is only recognised when it is more likely than not that the asset will be recoverable in the foreseeable future out of suitable taxable profits from which the underlying timing differences can be deducted.

HIRE PURCHASE AND LEASING COMMITMENTS
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

GOING CONCERN
The accounts which disclose an excess of liabilities over assets have been prepared on a going concern basis which the directors believe to be appropriate as they are of the view future trading will be profitable and Brittons Holdings Limited, a company which owns 50% of the shares, has provided the company with an undertaking for at least twelve months from the date of approval of these financial statements it will continue to make available such funds as are needed by the company to enable it to meet its liabilities as they fall due.

RELATED PARTY TRANSACTIONS
As at 30 April 2016 the company owed £73,944 (2015 : £163,944) to Brittons Holdings Limited a company that owns 50% of the shares. The loan was interest free and unsecured and has no fixed repayment terms. The company currently occupies premises owned by Brittons Holdings Limited on a rent-free basis.
The costs of accountancy amounting to £2,000 are met by Brittons Holdings Limited.

3Fixed assets Investments
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in market value is transferred to a revaluation reserve.