KNOWLS LANE DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024
Knowls Lane Developments Limited is a private company limited by shares and incorporated in England & Wales (registered number 15095954). The registered office is 101 New Cavendish Street, 1st Floor South, London, England, W1W 6XH.
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:
The financial statements have been prepared on the going concern basis, notwithstanding net liabilities of £5,603, which the director believes to be appropriate for the following reasons. The
company is dependent for its working capital on funds provided to it by the director.
The director has indicated that for at least 12 months from the date of approval of these financial
statements, he will continue to make available such funds as are needed by the company.
The director considers that this should enable the Company to continue in operational existence for
the foreseeable future by meeting its liabilities as they fall due for payment. As with any company
placing reliance for financial support, the director acknowledges that there can be no certainty that
this support will continue although at the date of approval of these financial statements, he has no
reason to believe that it will not do so.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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 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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