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2. |
ACCOUNTING POLICIES |
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The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the companys financial statements. |
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Statement of compliance |
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The financial statements of the company for the year ended 31 March 2018 have been prepared in accordance with the provisions of FRS 102 Section 1A (Small Entities) and the Companies Act 2006. |
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Basis of preparation |
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The financial statements have been prepared under the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements. |
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Cash flow statement |
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The company has availed of the exemption in FRS 102 Section 1A from the requirement to prepare a Statement of Cash Flows because it is classified as a small company. |
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Revenue |
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Revenue comprises the invoice value of goods supplied by the company, exclusive of trade discounts and value added tax. |
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Property, plant and equipment and depreciation |
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Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows: |
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Land and buildings freehold |
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No charge |
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Plant and machinery |
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20% reducing balance |
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Fixtures, fittings and equipment |
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20% reducing balance |
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Motor vehicles |
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25% reducing balance |
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The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. |
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Leasing and hire purchases |
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Property, plant and equipment held under leasing and Hire Purchases arrangements which transfer substantially all the risks and rewards of ownership to the company are capitalised and included in the Statement of Financial Position at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Income Statement. |
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Inventories |
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Inventories are valued at the lower of cost and net realisable value. Inventoriess are determined on a first-in first-out basis. Cost comprises expenditure incurred in the normal course of business in bringing inventories to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling. |
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Borrowing costs |
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Borrowing costs relating to the acquisition of assets are capitalised at the appropriate rate by adding them to the cost of assets being acquired. Investment income earned on the temporary investment of specific borrowings pending their expenditure on the assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period in which they are incurred. |
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Taxation and deferred taxation |
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Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Statement of Financial Position date. |
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8. |
PAYABLES |
2018 |
2017 |
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Amounts falling due after more than one year |
£ |
£ |
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Bank loan |
42,119 |
30,933 |
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Finance leases and hire purchase contracts |
299,675 |
283,216 |
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341,794 |
314,149 |
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Loans |
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Repayable in one year or less, or on demand (Note 7) |
10,825 |
15,982 |
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Repayable between one and two years |
18,778 |
30,933 |
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Repayable between two and five years |
23,341 |
- |
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52,944 |
46,915 |
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Net obligations under finance leases |
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and hire purchase contracts |
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Repayable within one year |
154,487 |
103,509 |
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Repayable between one and five years |
299,675 |
283,216 |
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454,162 |
386,725 |
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