Abbreviated Company Accounts - MOORPOINT LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
Basis of preparation
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 value, net of value added tax and discounts, of rentals due during the year.

Tangible assets depreciation policy
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.
Plant and machinery 25% Reducing Balance

Other accounting policies
Investment properties
Investment properties are accounted for in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015). No depreciation is provided in respect of such properties, other than where the properties are held under a lease which has less than 20 years remaining. Although the Companies Act 2006 would normally require the systematic annual depreciation of fixed assets, it is believed that this policy of not providing depreciation is necessary in order for the accounts to give a true and fair view, since the current value of investment properties, and changes in current value, are of prime importance rather than the calculation of systematic annual depreciation. Depreciation is only one of many factors reflected in the annual valuation, and the amount which might otherwise have been shown cannot be separately identified or quantified.

Deferred taxation
Full provision is made for deferred taxation resulting from timing differences between the recognition of gains and losses in the accounts and their recognition for tax purposes. Deferred taxation is calculated on an un-discounted basis at the tax rates which are expected to apply in the periods when the timing differences will reverse.

There are two investment properties owned by the company. One of these was sold on 20 December 2016 and the Directors have utilised the sale consideration in determining the market value at 30 November 2016 for this property. The Directors have utilised the most recent external valuers report in arriving at their determination of the market value of the second investment property as at 30 November 2016.
The second freehold investment property was revalued on 7 April 2017 by Ms K Smith of BNP Paribas Real Estate, a member of the Royal Institution of Chartered Surveyors on the basis of open market value subject to the existing tenancies. In his position as a Chartered Surveyor, Mr D G Bell, a director of the company, has confirmed to the Board that no change to this valuation is necessary and that the market value would not have changed between 30 November 2016 and 7 April 2017.
The freehold valuation and equivalent cost were as follows:
2016 - £4,600,000 (Cost £1,716,291)
2015 - £4,225,000 (Cost £1,716,291)
If the buildings were sold at the current valuation a liability to corporation tax would arise of approximately £526,372. This liability is not provided for in the financial statements.

3Fixed assets Investments
The company holds 20% or more of the share capital of the following companies:
Clifton Down Development Ltd
100% of the Ordinary Shares held.
Capital and Reserves: £60,078
Profit/(loss) for the year: £246,756