Abbreviated Company Accounts - MOLEND 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
Turnover comprises the invoiced value of goods and services supplied by the company net of value added tax and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold and Long Leasehold Properties 0.5% of cost
Fixtures, Fittings & Equipmen 15% of W.D.V
Motor Vehicle 25% of W.D.V.

Valuation information and policy
Stocks are stated at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items.

Other accounting policies
Deferred Taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet where transactions or events have occurred at that date that will result in an obligation to pay more, or right to pay less or to receive more tax, with the following exceptions:
Provision is made for tax on gains arising from the revaulation ( and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacements asset, 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 eveidence 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. Deferred tax assets are recongised 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 an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on the tax rates and laws enacted or substantively at the balance sheet date.

Financial Instruments.
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either 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.

4Transactions with directors

As at the Balance Sheet date, included in creditors falling due withing one year is Directors loan account of £2150 ( 2015- £3348) It is an interest free loan.