Subsequent to the balance sheet date, the directors decided that the company would permanently cease trading. As a result, the directors have concluded it is no longer appropriate to prepare these financial statements on a going concern basis. Therefore, the financial statements have been prepared on a break-up basis, under which:
- Assets are stated at their estimated net realisable values, reflecting the amounts expected to be recovered through disposal or wind-down.
- Liabilities include all costs and obligations arising from the cessation of trading.
The directors believe that the adoption of the break-up basis provides a more appropriate presentation of the company’s financial position in light of the decision to discontinue its operations.