H_B_PEARCE_(CONTRACTORS)_ - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 July 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.

H B Pearce (Contractors) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Thorpe House, 93 Headlands, Kettering, Northamptonshire, NN15 6BL.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. 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 financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. Turnover represents rents received in respect of the company's investment properties in accordance with operating lease agreements and is recognised as the company's right to receive payment is established. This is when invoices are raised as stipulated by those lease agreements and income is therefore recognised on a straight line basis over the period of the lease.

Investment properties for which fair value can be measured reliably without undue cost or effort are measured at far value at each reporting date with changes in fair value recognised in profit or loss. The fair value is based on market valuations provided by professional valuers on a regular basis and reviewed each year by the directors.

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

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 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 periods different from those in which they are recognised in 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.

Hire purchase

The cost of assets held under hire purchase contracts are included in tangible fixed assets and depreciated at the appropriate rates. The capital element of future repayments is included in creditors, whilst the finance charge element is written off to the profit and loss account.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

The average monthly number of persons (including directors) employed by the company during the year was 4 (2017 - 4).

Creditors at 31st July 2018 includes £24,527 (2017; £24,527) in respect of a loan to H B Pearce (Developments) Limited, a company controlled by the directors. The loan is interest free and repayable on demand.

The directors loans are repayable on demand.

The company is ultimately controlled by Mrs E R Pearce who controls 80% of the issued share capital held in family settlements.