Abbreviated Company Accounts - INNOVATE (COWDENBEATH) LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The full financial statements from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention as modified by the revaluation of freehold property and in accordance with the Financial Reporting Standard for Small Entities (effective January 2015).

Going Concern
At the balance sheet date the company had net liabilities of £1,581,246 (2015 - £1,715,209) and net current assets of £239,599 (2015 - £206,483). These financial statements are prepared on a going concern basis on the assumption that the company's creditors will continue to financially support the company for the foreseeable future. On this basis, the directors believe that the going concern basis continues to be appropriate and accordingly the financial statements do not include any adjustment that would arise should the support of the creditors be withdrawn.

Turnover policy
Turnover comprises sales to external customers at invoiced amounts less value added tax. Income is recognised in the period in which services are supplied.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:

Freehold property - Not depreciated
Motor vehicles - 25% reducing balance
Equipment and fittings - 20% reducing balance
Ground improvements - 20% reducing balance

Intangible assets amortisation policy
Intangible fixed assets relate to a trademark application. It is not depreciated for the period under review.

Other accounting policies
Investments
Investments held as fixed assets are shown at cost less provision for impairment

Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowances for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Deferred taxation
Full provision is made for deferred tax assets and liabilities arising for all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.

Deferred tax is not provided on timing differences arising from the revaluation of fixed assets in the financial statements.

A net deferred tax asset is recognised only if 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 assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.

Deferred tax assets and liabilities are not discounted.

Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Where the contractual obligations of the financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

4Fixed assets Investments
Cost or valuation
At 1 December 2015 and 30 November 2016 £100

Net Book Value
At 30 November 2016 £100
At 30 November 2015 £100

Subsidiary undertakings

The following was a subsidiary undertaking of the company during the year:

Countrylife Homes Limited - Ordinary shares 100% shareholding

The aggregate of the share capital and reserves as at 30 November 2016 and of the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Aggregate of share capital and reserves - (£1,268,830)
Profit/(Loss) - (£138,683).

During the year the company disposed of its investment in Cowdenbeath Football Club Limited. The investment had a carrying value of £Nil at the point of disposal.

6Transactions with directors

At the period end, a balance totalling £240,013 (2015 - £204,013) was owed by Countrylife Homes Limited, a 100% owned subsidiary company.

Cowdenbeath Football Club Limited was a 86.8% owned subsidiary company. Throughout the year, the company received rental income of £26,777 (2015 - £20,000) from Cowdenbeath Football Club Limited for the use of the facility at Central Park, Cowdenbeath. During November 2016, Innovate (Cowdenbeath) Limited sold its investment in Cowdenbeath Football Club Limited.

Included within other creditors due within one year is a balance of £12,104 (2015 - £12,104) due to Alex Brewster & Sons, a partnership in which D F Brewster and A K Brewster are partners. During the period additional loans of £Nil (2015 - £6,283) were made and amounts totalling £Nil (2015 - £Nil) were repaid to Alex Brewster & Sons.