Abbreviated Company Accounts - MACK & LAWLER BUILDERS LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

Turnover policy
The company's turnover represents the value, excluding Value Added Tax, of goods and services supplied to customers during the year. Turnover relating to the sale of land and property is recognised when the contract for sale becomes unconditional. Non-refundable plot reservation fees are recognised when paid.

Rental income is recognised in accordance with the period to which it relates.

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

Tangible assets depreciation policy
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Leasehold Improvements - equal instalments over the period of the lease
Plant and Machinery - 25% per annum reducing balance
Fixtures and Fittings - 25% per annum reducing balance
Motor Vehicles - 25% per annum reducing balance

Intangible assets amortisation policy
Investment properties

In accordance with standard accounting practice, investment properties are revalued annually and the aggregate surplus or deficit is transferred to a revaluation reserve. No depreciation is provided in respect of freehold investment properties and leasehold properties with over 20 years to run as stated previously.

None of the investment properties are held on lease resulting in the need for systematic depreciation.

Mr I. C. McManaman as a director of the company, carried out the open market valuation of the properties by reference to an evaluation of current market prices for land and rental yield, as adjusted for the specific investment opportunities of each site.

Other accounting policies
Stocks
Stocks have been valued at the lower of cost and net realisable value.
Work in progress
Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate.
For contracts classified as long term an appropriate level of attributable profit has been taken, based upon the stage of completion of the work and the relevant turnover credited to sales in the profit and loss account. Where a loss is expected on a contract the loss has been recognised immediately and written off in the financial statements. WIP includes options over land that will form the land bank.
Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
Pension costs
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.
Deferred taxation
Deferred tax 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;
provision is made for deferred tax that would arise on remittance of the retained earnings of overseas subsidiaries, associates and joint ventures only to the extent that, at the balance sheet date, dividends have been accrued as receivable;

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 a discounted/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.

The company acquired a property at Briggate, Leeds to refurbish and then sell but the current economic climate for commercial property has prompted a change in strategy resulting in letting the property.

There will be periodic revaluation, as required by accounting standards, which will result in unrealised gains or losses. No provision for deferred taxation which may arise on any potential gain has been provided in the accounts because there is no intention to sell the property nor can a realistic estimate of any capital gains tax be accurately calculated.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

3Fixed assets Investments
The company owns 100% of the issued share capital of the companies listed below,

2015 2014
£ £
Aggregate capital and reserves

Fulford (81-85 Main Street) Management Company Limited 5 5

Profit and (loss) for the year

Fulford (81-85 Main Street) Management Company Limited – –

Subsidiary undertakings - Fulford (81-85 Main Street) Management Company Limited
Country of incorporation - England
Holding - Ordinary Shares
Proportion of voting rights and shares held - 100%
Nature of business - Property management