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SPARROW RED LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2024
The Company is a private company, limited by shares, incorporated in England and Wales. The registered office is 7 The Close, Norwich, Norfolk, NR1 4DJ. The principal place of business is The Old Dairy, Park Farm, Gressenhall, Dereham, Norfolk, NR19 2QL.
The Company's principal activities are those of holiday accommodation management.
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 directors have considered a period of twelve months from the date of approval of the financial statements. The directors consider the projected income and ongoing support of the landlord to be adequate to enable the company to meet its obligations as they fall due. Accordingly, the financial statements have been prepared on the going concern basis.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
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