After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis of accounting in preparing its financial statements.

Turnover represents revenue earned from the provision of bricklaying and related construction services. Revenue is recognised when control of the services transfers to the customer and it is probable that the economic benefits will flow to the company. Revenue is measured at the transaction price excluding VAT.

Amounts retained by customers (retentions) are included within debtors and are recognised as turnover. Retentions are receivable in the future in accordance with the terms of the individual contracts. Where retentions are considered nonrecoverable, an appropriate provision is made.

A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Investment properties are initially recognised at cost, including transaction costs. Subsequently, investment properties are measured at fair value, with any changes in fair value recognised in profit or loss. Fair value is determined based on market value or other appropriate valuation techniques. Any increase or decrease in the fair value of investment properties is recognised in profit or loss in the period in which they arise. Investment properties are revalued periodically to ensure that their carrying amounts reflect their fair values at the reporting date. The frequency of revaluation depends on the nature of the properties and market conditions. Generally, properties are revalued annually, but more frequent revaluations may be performed if there are significant fluctuations in market values.

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.