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WOKINGHAM ROAD MOTOR COMPANY (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Wokingham Road Motor Company (Reading) Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 00867096 and registered office address is Normany Garage, Guildford Road, Normandy, Surrey, GU3 2DA.
2.Accounting policies
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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The following principal accounting policies have been applied:
Turnover comprises the sale of new and used cars, servicing of cars and supply of parts for the brands under franchise agreement with the company. Turnover is recognised when the risks and rewards of ownership have passed to the customer. This is determined as at the point at which goods are dispatched from the company's premises to the customer.
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WOKINGHAM ROAD MOTOR COMPANY (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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WOKINGHAM ROAD MOTOR COMPANY (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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WOKINGHAM ROAD MOTOR COMPANY (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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WOKINGHAM ROAD MOTOR COMPANY (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
An error was identified in the opening balances due to a system error in the transition to the MTD VAT scheme in 2019. The VAT creditor was historically understated by way of a bookkeeping issue and has now been increased by £61,189, with a corresponding reduction in reserves brought forward. There is no impact on the profit or loss for the current or comparative year.
The company operates a defined contribution pension scheme for its employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The pension cost charge for the year was £13,272 (2022 - £13,671). There were no amounts outstanding or prepaid at the year end (2022 - £nil).
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