HMG Coatings (London) Limited
Notes to the financial statements
for the year ended 30 September 2023
HMG Coatings (London) Limited is a private company limited by shares, incorporated in England and Wales. The address of the registered office and the principal place of business is Riverside Works, Collyhurst Road, Manchester, M40 7RU. The company's registered number is 03062258.
The company ceased trading on 31 July 2019, by which point all trade had been transferred to a fellow subsidiary company, HMG Paints Limited.
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 company ceased trading on 31 July 2019, by which point all trade had been transferred to a fellow subsidiary company, HMG Paints Limited.
The director intends the company to remain a dormant entity for the foreseeable future. On that basis, the director believes it is appropriate for the financial statements to be prepared on a going concern basis.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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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