RUGBY MAD REAL ESTATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
2.Accounting policies (continued)
In preparing the financial statements, the directors have considered the current financial position of the and have concluded that it is appropriate to prepare the financial statements on a going concern basis. In forming this conclusion, the director has considered the company's net liabilities and the loss reported in current financial year.
After making enquiries, the directors have a reasonable expectation that the company has adequate to continue in operational existence for the foreseeable future and to meet its financial obligations as they due. Accordingly, the director continues to adopt the going concern basis in preparing the annual report and accounts.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
Basic financial assets, which include trade and other debtors and cash and bank balances, are initially at transaction price 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.
Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price the arrangement constitutes a financing transaction, where the debt instrument is measured at the present of the future receipts discounted at a market rate of interest.
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The Company has no employees other than the directors, who did not receive any remuneration (2021 - £NIL).
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The average monthly number of employees, including directors, during the year was 0 (2021 - 0).
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