MULBURY_HOMES_STRATEGIC_L - Accounts
MULBURY_HOMES_STRATEGIC_L - Accounts
Mulbury Homes Strategic Land Limited is a private company limited by shares incorporated in England and Wales. The registered office is Great Oak Farm, Mag Lane, Lymm, Cheshire, WA13 0TF.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The financial statements have been prepared on a going concern basis. The company has net current liabilities of £2,546 (2017: £1,320) at the balance sheet date. In order to continue trading, the company is reliant upon the support of its directors. It has been indicated that this support will continue.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
Bank interest accruing on capital borrowed to fund the production of long term contracts is carried forward within long term contract balances.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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 company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
By virtue of common shareholdings Mulbury Homes Limited is a related party.
The company paid a management charge of £270,000 (2017: £603,500) to Mulbury Homes Limited in the year.
The company purchased goods and services of £NIL (2017: £288,451) from Mulbury Homes Limited.
At the year end, a balance of £190,796 (2017: £320,736) was due from Mulbury Homes Limited and is included within other debtors. The loan is interest free with no fixed date for repayment.
By virtue of common shareholdings Mulbury Homes (Blossom Street) Limited is a related party.
At the year end, a balance of £102,249 (2017: £102,249) was due from Mulbury Homes (Blossom Street) Limited and is included within other debtors. The loan is interest free with no fixed date for repayment.
By virtue of common shareholdings Mulbury Homes (Castlefield) Limited is a related party.
At the year end, a balance of £22,000 (2017: £22,000) was due from Mulbury Homes (Castlefield) Limited and is included within other debtors. The loan is interest free with no fixed date for repayment.