NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Alton Road Limited is a limited company incorporated in England and Wales with its principal place of business at Cavendish House, 369 Burnt Oak Broadway, Edgware, HA8 5AW and its registered office at 5 Elstree Gate, Elstree Way, Borehamwood, Hertfordshire, WD6 1JD.
The principal activity of the Company is that of property development.
The Company's functional and presentational currency is £ sterling.
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.
As at 31 December 2021 the Company had accumulated losses of £467,243 (2020 - £465,649) and the Company is dependent on the ongoing support of its loan creditor and a company under common control. On the basis that the directors expects this ongoing support to be be maintained for at least 12 months following the date of his approval of the financial statements, the director has considered it appropriate to continue to prepare the financial statements on a going concern basis.
Turnover comprises revenue recognised by the Company in respect of development property sales, exclusive of Value Added Tax.
Development property sales are recognised at the date of exchange of contracts. If completion is conditional upon an external event the sale is recognised at the time the transaction becomes unconditional.
Stocks and work in progress represents development property valued at the lower of cost and net realisable value. Cost for this purpose comprises the original purchase of land and buildings, development expenditure and overheads.
In considering the net realisable value of land and properties it is assumed that developments will be completed and sold in the ordinary course of the Company's business and that they would not be placed on the market for immediate sale.
Short term debtors are measured at the transaction price, less any impairment.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and third parties and loans to and from related parties.
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