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CHURCHILL HOMES (LOIRSTON) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Churchill Homes (Loirston) Limited is a private limited company incorporated in Scotland. The registered office is Brodies House 31-33 Union Grove, Aberdeen, United Kingdom, AB10 6SD. The company's principal activity is the development of 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 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 following principal accounting policies have been applied:
At 30 June 2024 the company had net liabilities of £21,016 (2022 - £18,215). The company is financed by a related party (see Note 6). The balance is unsecured and has no set repayment terms.
After making enquiries, the directors have a reasonable expectation that the company, with the support of its related party, has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.
Profit will be recognised on house sales when contracts are exchanged and building work is substantially complete.
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.
A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.
Deferred tax assets and liabilities are not discounted.
Work in progress is valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving items.
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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