Basis of preparing the financial statements: Included in the company's net current liabilities is an amount of £284,910 owing to Junestead Limited. The directors of Junestead Limited, one of whom is the director and secretary of this company, have confirmed that Junestead Limited will not seek repayment from Junestead Holdings Limited until such time as the company is able to meet its liabilities in full. As a result, the director continues to adopt the going concern basis in preparing the company's financial statements. The financial statements do not include the adjustments that would be required if the company were unable to continue as a going concern. Related party exemption: The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose related party transactions with wholly owner subsidiaries within the group. Investments in subsidiaries and associates: Investments in subsidiary and associate undertakings are recognised at cost less any provision for impairment. Taxation: Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. Current or deferred taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax: Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Timing differences arise from the inclusion of income and expenses in tax assessments in different periods from those in which they are recognised in the financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.