Abbreviated Company Accounts - HAMPSEY 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
When the outcome of individual construction contracts can be estimated reliably, contract
revenue and contract costs are recognised as revenue and expenses respectively be reference to
the stage of completion at the reporting date.Costs are recognised as incurred and revenue is
recognised on the basis of the proportion of total costs at the reporting date to the estimated total
costs of the contract.
Provision is made for all known or expected losses on individual contracts once such losses are
foreseen.
Revenue in respect of variations to contracts are recognised when it is probably they will be
agreed by the customer.
Revenue in respect of claims is recognised when negotiations have reached an advanced stage
such that it is probably that the customer will accept the claim and the probably amount can be
measured reliably. Profit for the year includes the benefit of claims settled in the year on contracts
completed in previous years.

Tangible assets depreciation policy
All fixed assets are initially recorded at cost.
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:
Plant & machinery - 20% reducing balance
Motor vehicles - 20% reducing balance

Other accounting policies
Hire purchase agreements
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed
assets at their fair value. The capital element of the future payments is treated as a liability and
the interest is charged to the profit and loss account on a straight line basis.

Finance lease agreements
Where the company enters into a lease which entails taking substantially all the risks and rewards
of ownership of an asset, the lease is treated as a finance lease. The asset is recorded in the
balance sheet as a tangible fixed asset and is depreciated in accordance with the above
depreciation policies. Future instalments under such leases, net of finance charges, are included
within creditors. Rentals payable are apportioned between the finance element, which is charged
to the profit and loss account on a straight line basis, and the capital element which reduces the
outstanding obligation for future instalments.

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.

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.
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.

On 5 March 2016 the following actions were resolved:
a) to designate 1,000 of the issued Ordinary Shares of £1.00 each as 500 A Ordinary Shares of
£1.00 each and 500 B Ordinary Shares of £1.00 each
b) to allot 1 B Ordinary Shares of £1.00 at par
c) to disapply pre-emptions rights to the sum of £1.00 in respect of the B Ordinary Shares for the
purpose of issuing 1 B Ordinary Share