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LT NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2019
The Company is a private company limited by shares, registered in England and Wales. The address of the registered office and trading address is 54 Dog Lane, Coleshill, Birmingham, B46 2DX. The Company's registration number is 10788827.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime and in accordance with FRS 102 Section 1A – small entities.
The company has opted to prepare and file filleted accounts under Section 444 of the Companies Act 2006. In the prior year, the company filed abridged accounts under Section 444(5A).
The change in filing format reflects a decision to streamline public disclosures while continuing to prepare full financial statements for members. This change does not affect the recognition or measurement of any financial statement items.
The financial statements have been prepared on a break-up basis, as the director had resolved prior to the preparation of these accounts to apply for the company to be struck off the register and dissolved. Although formal steps to initiate the strike-off process have not yet been taken, the director confirms that the decision to wind up the company is final. Accordingly, assets and liabilities have been measured at their expected recoverable and settlement amounts.
The following principal accounting policies have been applied:
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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.
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