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RURAL EXECUTIVE HOMES (HINDHEAD) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
Rural Executive Homes (Hindhead) Limited is a private company limited by shares registered in England and Wales. The address of the registered office is disclosed on the company information page.
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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The following principal accounting policies have been applied:
Stock consists solely of work in progress and is valued at the lower of cost and net realisable value. Costs include direct materials, labour and attributable overheads. Net realisable value is based on the estimated contract value or selling price, less any further costs to completion and realisation.
The company currently shows a deficit on its balance sheet.
Due to the ongoing support from a group company, the directors believe that it is appropriate to prepare the financial statements on a going concern basis which assumes that the company will continue in existence for the foreseeable future. It is anticipated that in the next twelve months the company will generate a profit and its financial position will improve.
If the company were unable to continue in existence, adjustments would have to be made to reduce the balance sheet value of assets to their recoverable amount and to provide for further liabilities that might arise.
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 other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
The average monthly number of employees, including directors, during the year was 2.
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