EGLI HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 NOVEMBER 2021
Egli Homes Limited is a private company, limited by shares, incorporated in England and Wales in the United Kingdom. The address of the registered office is 23 West Street, West Malling, England, ME19 6QX.
The accounting period for these financial statements are presented for a period of almost 13 months to 30 November 2021. The accounting period is longer than 12 months as this is the first accounting period of the Company.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The Company's balance sheet shows a net current liabilities position at the balance sheet date. This is due to the Company being in the early stages of its life cycle. The directors will continue to support the Company during this time and have confirmed that any loans will not become due for repayment until such time as the Company has the funds to repay them. As such, the directors believe it correct to prepare the accounts on a going concern basis.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Work in progress consists of unbilled amounts of work done on long term contracts.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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