Abbreviated Company Accounts - SOUTH STAND DEVELOPMENT COMPANY LIMITED

1Accounting Policies

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

Turnover policy
Turnover represents the total invoice value, excluding value added tax, of sales made during the year and derives from the provision of goods falling within the company’s ordinary activities.

Tangible assets depreciation policy
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life as follows:

Land and buildings - Nil
Plant and machinery - 20% reducing balance
Motor vehicles - 25% reducing balance
Computer equipment - 3 years straight line

Other accounting policies
Investment properties

Investment properties are included in the balance sheet at their open market value. In accordance with SSAP 19, no depreciation is charged on investment properties. The directors consider that this policy, which represents a departure from the statutory accounting principles, is necessary to show a true and fair view.

Pensions

The pension costs charged in the financial statements represent the contributions payable by the company during the year.

Deferred Tax

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 that 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 replacements are sold;

Provision is made for deferred tax that would arise on the 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 directors consider 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 a 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.

Going concern

The company had net current liabilities of £930,559 at the balance sheet date. Of this amount, however, £928,570 is due to the directors and connected parties and they have confirmed that they will continue to support the company. The directors confirm that they consider the company has sufficient working capital to continue trading for the foreseeable future.