Abbreviated Company Accounts - LIMEMEADOW PROPERTIES LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
These financial statements have been prepared on the going concern basis under the historical cost convention, and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom. The principal accounting policies, which have been applied consistently throughout the financial year, are set out below.

Turnover policy
Turnover represents the invoiced value of goods supplied during the financial year excluding value added tax. Turnover is recognised when all risks and rewards are passed to the customer.

Valuation information and policy
Stock and work in progress are stated at the lower of cost and net realisable value. Cost comprises property acquired for development together with associated development costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision, where necessary, is made for slow moving stocks.

Other accounting policies
Cash flow statement

The company is a small company and consequently has taken advantage of the exemption from preparing a cash flow statement under the terms of Financial Reporting Standard 1 (revised 1996) “Cash flow statements”.

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 that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. A net deferred tax asset is recognised as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as 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 at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheets date. Deferred tax is measured on an undiscounted basis.

3Transactions with directors