Abbreviated Company Accounts - EUROCASTLE LIMITED

1Accounting Policies

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

The company is the parent undertaking of a small group and as such is not required by the Companies Act 2006 to prepare group accounts. These financial statements therefore present information about the company as an individual undertaking and not about its group.

Turnover policy
Turnover represents income wholly derived from the company’s principal activity. Turnover is recognised upon the completion of contracted obligations of both parties.

Other accounting policies
Going concern
The director has prepared the financial statements on the going concern basis although the balance sheet shows negative shareholders funds. This is considered appropriate as the company's shareholders and creditors will continue to provide financial support to the company for the foreseeable future and the company is expecting to make profits in future years that will reverse this position. Should the company be unable to continue trading, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for any further liabilities which might arise.

Compliance with and departure from accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except where otherwise stated).

The company has not disclosed the ultimate controlling party which is a requirement of Financial Reporting Standard for Smaller Entities (effective January 2015). This is a departure from accounting standards. The director is of the opinion that the non disclosure of this information does not affect the truth and fairness of the financial statements.

Investment properties
Investment properties are included in the Balance sheet at their open market value in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015) and are not depreciated. This treatment is contrary to the Companies Act 2006 which states that fixed assets should be depreciated but is, in the opinion of the director, necessary in order to give a true and fair view of the financial position of the company.

Investments
Investments held as fixed assets are stated at cost less provision for diminution in value.

Deferred taxation
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.

A net deferred tax asset is recognised only if it can be regarded as 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 assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.

Deferred tax assets and liabilities are not discounted.

Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Profit and loss account.

2Fixed assets Investments
INVESTMENT PROPERTY

Cost
At 1 January 2015 and 31 December 2015 - £934,047

The properties within the financial statements are included at cost and have not been revalued since their acquisition. The director is of the opinion that the value of the properties contained within these financial statements accurately reflects their current open market value.

FIXED ASSET INVESTMENTS

Cost or Valuation
At 1 January 2015 and 31 December 2015 - £159,033

Impairment
At 1 January 2015 and 31 December 2015 - £31,298

Net book Value
At 31 December 2015 - £127,735

At 31 December 2014 - £127,735

Subsidiary Undertakings
Eurocastle Invest Ltd - 100% Ordinary Shares - Business: Sawmilling & planning of wood - Registered office: Ukraine

The aggregate of the share capital and reserves as at 31 December 2015 and of the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Eurocastle Invest Ltd - Aggregate of share capital and reserves: £30,824, Profit/(Loss): £Nil