Abbreviated Company Accounts - M1 RE MANCHESTER 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.

Tangible assets depreciation policy
All fixed assets are initially recorded at cost. Finance costs directly attributable to the construction of tangible fixed assets are capitalized as part of the costs of those assets.

Other accounting policies
Assets under course of construction are not depreciated until they are available for use.

Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rate at the balance sheet date. All exchange differences are included in the profit and loss account.

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.

The company has net assets of £ 6.719.871. As the entity hasn’t started trading yet a loss was incurred and the company continued to depend on the financial support from its parent undertaking.
On the basis of their assessment of the company’s financial position, the expected cash flows and ongoing group support, the company’s directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.