The financial statements are prepared under the historical cost convention and in accordance with the FRS 102 Section 1A Small Entities - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.
The company has net current liabilities at 31 May 2024 and meets its day to day working capital requirements through loans from the director and other third parties. On the basis of this support, the director considers it appropriate to prepare the financial statements on the going concern basis.
However, should the company not have the support of its director and other third parties and therefore be unable to continue trading, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for further liabilities which might arise, and to reclassify fixed assets and long term liabilities as current assets and current liabilities.