NJOY_ACCOMMODATION_MANAGE - Accounts

The accounts have been prepared on a going concern basis despite the net current liabilities due to the continued financial support of the shareholders, as required. Included within creditors is a shareholder loan of £1,395,951 plus accrued interest of £30,080, allocated between creditors less than 12 months and greater than 12 months, based on the agreement in place. If required the repayment schedule could be renegotiated with the shareholders.

No depreciation has been charged on freehold buildings. This is based on the fact that a recent valuation indicates that the market value of the freehold land and buildings is significantly in excess of the professional valuation previously done dated 26 July 2013. The directors believe that depreciating the freehold buildings is therefore inappropriate and would be misleading in respect of the carrying value of the freehold land and buildings held. The company has a policy of regular maintenance and repair such that the tangible fixed asset is retained at its previously assessed standard of performance and it is unlikely to suffer from technological or economic obsolescence.

Freehold land and buildings are reviewed for impairment on an annual basis with any impairment charge taken to the profit and loss account in the period to which it relates.

Deferred taxation is recognised in respect of all timing differences which have originated but not reversed at the balance sheet date. Timing differences are differences between taxable profits and the results as stated in the financial statements which arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised for tax purposes.

A net deferred tax asset is regarded as recoverable and therefore recognised only when it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of underlying timing differences can be deducted.

Deferred tax is not recognised when fixed assets are revalued unless by the balance sheet date there is a binding agreement to sell the revalued asset and the resulting gain or loss has been recognised in the financial statements. Neither is deferred tax recognised when fixed assets are sold and it is more likely than not that the taxable gain will be rolled over, being charged to tax only if and when the replacement assets are sold.

Deferred tax is measured at the average tax rates which are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws which have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.

The initial website development costs have been capitalised at cost and are being amortised over 3 years. Any future associated website maintenance and web page development costs will be written off to the profit and loss account as incurred.