Abbreviated Company Accounts - MAGNOGLIDE LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
Basis of accounting
The financial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions:
Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement
assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold.
Provision is made for deferred tax that would arise on remittance of the retained earnings of
overseas subsidiaries, associates and joint ventures only to the extent that, at the balance sheet
date, dividends have been accrued as receivable.
Deferred tax assets are recognised only to the extent that the director considers that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Investments
Fixed asset investments are stated at cost less provision for any impairment.

Other accounting policies
RELATED PARTY TRANSACTIONS
The company was under the control of Mr P Marcucci. Mr P Marcucci has made a loan to the
company, interest free and repayable at the company's discretion.The balance outstanding at 31
December 2013 was £779,097 (2012-£779,097).
Mr P Marcucci advanced £20,000 to the company interest free repayable on demand. At 31 December 2013 the balance outstanding was £20,000 (2012-£20,000).
The company holds a 25 per cent equity interest in Ancora S.r.l, 18.88% in San Quirico s.r.l and 17.5% Borgio Ai Conti s.r.l. These companies are under the control of members of Mr P Marcucci's close family. The company has loaned euro 107,884 to Ancora Srl, interest free and repayable on demand. At 31 December 2013 the balance receivable was £89,879 (2012- £90,271) after restatement of foreign currency.

2Fixed assets Investments
FIXED ASSETS
Investments
£
COST
At 1 January 2013 and 31 December 2013 512,884

NET BOOK VALUE
At 31 December 2013 512,884

At 31 December 2012 512,884


The company owns 25% of the issued share capital of Ancora s.r.l, 18.88% of San Quirico s.r.l and
17.5% of Borgo Ai Conti s.r.l. All companies were incorporated in Italy. Ancora s.r.l's accounting
reference date is 30 September 2013. San Quirico s.r.l. and Borgo Ai Conti s.r.l prepare financial
statements to 31 December 2013.

2013 2012
£ £
Aggregate capital and reserves
Ancora s.r.l (Property management) 2,116,682 2,041,281
San Quirico s.r.l (Property management) 2,209,142 2,299,198
Borgo Ai Conti s.r.l (Property development) 1,895,412 1,984,019

Profit and (loss) for the year
Ancora s.r.l (18,241) (40,692)
San Quirico s.r.l (139,788) (56,468)
Borgo Ai Conti s.r.l (131,522) (199,518)