Abbreviated Company Accounts - EIREANN CONTRACTS 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
The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax.

Revenue Recognition

In preparing the financial accounts the company has adopted UTIF 40 in accordance with Financial Reporting Standard 5.

In accordance with this standard revenue is recognised as the contract progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. Turnover reflects the accrual of the right to consideration by reference to the value of work performed. Turnover not billed to clients is included in debtors as 'amounts recoverable on contracts'.

Tangible assets depreciation policy
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Plant & Machinery - 25% Reducing Balance
Equipment - 20% Reducing Balance

Valuation information and policy
Fixed assets

All fixed assets are initially recorded at cost.

Stocks

Stock is valued in accordance with SSAP 9, at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is all expenditure in the normal course of business in bringing stock to it's present location and condition. Net realisable value is the estimated selling price of an item of stock less the costs of completion and the costs of selling and distribution.

Other accounting policies
Hire purchase agreements

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account on a straight line basis.

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 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

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

3Fixed assets Investments
Subsidiary Companies

BDS (NI) Limited is a wholly owned subsidiary of Eireann Contracts Limited. The company was incorporated in Northern Ireland and has a shareholding of 2 ordinary shares of £1 each.

Drywall Interiors Limited is also a wholly owned subsidiary of Eireann Contracts Limited. The company was incorporated in Northern Ireland and has a shareholding of 2 ordinary shares of £1 each.

Eireann Contracts Limited have availed of the exemption under the Companies Act 2006 to prepare Group Accounts by virtue of the fact that it qualifies as a small group.