Lochailort Kentford Limited
Notes to the financial statements
For the period ended 31 December 2023
Lochailort Kentford Limited is a private company, limited by shares and incorporated in England and Wales with a registration number 14681441. The registered office address is 108-110 Jermyn Street London, SW1Y 6EE.
The principal activity of the company was that of buying and selling of real estate and land.
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 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:
Despite the company reporting a financial loss of £141,201 for the period ending 31 December 2023, the financial statements have been prepared on a going concern basis. The company was formed with the purpose of developing the £9,439,770 property on the balance sheet over the next couple of years to generate a profit. For this reason, the directors continue to adopt the going concern basis in preparing the financial statements.
Interest income is recognised in profit or loss using the effective interest method.
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 on a first in, first out basis. 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.
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.
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