Abbreviated Company Accounts - E J LIDSTER (CONSTRUCTION) BURTON PARK LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts have been prepared under the historical cost convention, modified to include the revaluation of certain fixed assets, and in accordance with the Financial Reporting Standard for Smaller Entities effective April 2008.

Turnover policy
Turnover represents total rents receivable by the company during the year.

Other accounting policies
Investment Properties:
Investment properties are shown at their open market value. The surplus or deficit arising from the annual revaluation is transferred to the investment revaluation reserve unless a deficit, or its reversal, on an individual investment property is expected to be permanent, in which case it is recognised in the profit and loss account for the year.
This is in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008) which, unlike the Companies Act 2006, does not require depreciation of investment properties. Investment properties are held for their investment potential and not for use by the company and so their current value is of prime importance. The departure from the provisions of the Act is required in order to give a true and fair view.

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;
Deferred tax is measured 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.

Going concern:
The accounts have been prepared on a going concern basis which is dependent on the ability of the company to repay the bank borrowings when they fall due.
At 31 January 2014 the company had outstanding bank borrowings of £3,687,232. Following a facility review by Yorkshire Bank plc in July 2012 the company agreed to new bank loan facilities which have resulted in borrowings of £2,223,927 becoming payable by 19 November 2014.
The director is confident that the company has sufficient assets to enable it to fulfill its requirement to repay the bank loans as they fall due. On this basis the director believes that it is appropriate to prepare the accounts on a going concern basis.