Abbreviated Company Accounts - FUEL PREPARATIONS (INTERNATIONAL) LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts 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 represents the total invoice value, excluding value added tax, of sales made during the year.

Tangible assets depreciation policy
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:-
Plant and machinery - 20% reducing balance/ 20% straight line on additions after 1 July 2008
Fixtures, fittings and equipment - 15% reducing balance/ 15% straight line on additions after 1 July 2008
Motor Vehicles - 20% straight line

The cost of tangible fixed assets is their purchase cost, together with any incidental expenses of acquisition.

The carrying value of tangible fixed assets are reviewed annually for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable.

Other accounting policies
Leasing and hire purchase commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period.

Stock

Stock is valued at the lower of cost and net realisable value.

Pensions

The pension costs charged in the financial statements represent the contribution payable by the company during the year.
Pension benefits for employees are met by payments to a defined contribution pension fund.

Deferred Tax

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 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 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.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the date of the transactions. All differences are taken to the Profit and Loss account.

3Fixed assets Investments
Fixed asset investments are stated at cost less provision for permanent diminution in value.

6Transactions with directors

Transactions with businesses connected with the directors are disclosed as follows:

LCC Group Limited:-

- Sales to related party - £1,558,083
- Purchases from related party - £87,888
- Amounts owed by related party - £149,065
- Amounts owed to related party - £14,199
Lissan Coal Company SA:-

- Sales to related party - £22,275
- Amounts owed by related party - £2,940

LCC Power Limited:

- Sales to related party - £5,110
- Purchases from related party - £68,791
- Amounts owed by related party - £6,110
- Amounts owed to related party - £5,472

Patmond Energy Limited:-

- Purchases from related party - £78,955

The directors of the company are also directors in LCC Group Limited. At 30 June 2016 Mr M C Loughran, Mr M O Loughran and Mr D Loughran jointly own and control LCC Group Limited.

LCC Power Limited and Lissan Coal Company SA are 100% owned subsidiaries of LCC Group Limited.

The directors of the company are also directors of Patmond Energy Limited. Mr M C Loughran is a shareholder in Patmond Energy Limited.