MARDEN ESSEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
Marden Homes Essex Limited is a private company, limited by shares, domiciled in England and Wales, registration number 10441770. The registered office is 601 London Road, Westcliff on Sea, Essex SS0 9PE.
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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 4).
The following principal accounting policies have been applied:
The accounts record a balance sheet deficit of £35,877 therefore the going concern basis is dependent upon the continued support of the holding company.
The directors are currently exploring the option of undertaking a further development which they anticipate will generate a profitable return, but as yet no formal decision has been made as to whether to proceed. In the meantime, the company continues to receive the support of its holding company and the directors consider that that support will continue as long as is necessary.
In light of the aforementioned, the directors consider it appropriate to adopt the going concen basis in preparing these financial statements.
Interest income is recognised in profit or loss using the effective interest method.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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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.
The Company only enters into basic financial instrument transactions that result in the recognition of
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