Abbreviated Company Accounts - WE ARE THE CITY LTD

1Accounting Policies

Basis of measurement and preparation of accounts
a) Going concern

At the balance sheet date the company has a deficiency of assets and is dependent upon the continued support from its shareholders and creditors. These abbreviated accounts have been prepared on a going concern basis as the director has received assurances from the creditors and shareholders that such support will continue to be made available.

b) Accounting convention

The abbreviated accounts are prepared under the Historical Cost Convention and in accordance with applicable Accounting Standards recognised in the United Kingdom (United Kingdom Generally Accepted Accounting Practice).

The significant accounting policies are consistent with those of the accounting policies described in the 2012 annual financial statements and are described below. In accordance with FRS 18 "Accounting Policies" the director confirms that the most appropriate accounting policies have been used in preparing the abbreviated accounts.

Turnover policy
c) Turnover

Turnover represents services rendered during the year, excluding returns, discounts and Value Added Tax.

Tangible assets depreciation policy
e) Depreciation

Depreciation is provided on all tangible fixed assets in order to write off their cost by equal annual instalments over their expected useful lives. The rates adopted are as follows:-

Computer Equipment - 33% reducing balance method

Other accounting policies
d) Cash flow statement

The company is exempted from the requirement to prepare a cash flow statement (in accordance with Financial Reporting Standard No. 1) on the basis of its being a “small company” as defined by the Companies Act 2006.

f) Deferred taxation

Deferred taxation has been recognised as a liability or asset if transactions have occurred at the balance sheet date that give rise to an obligation to pay more taxation, or a right to pay less taxation, in the future which timing differences have originated but not reversed at the balance sheet date. Deferred tax assets are recognised if their recoverability in the foreseeable future is deemed to be probable. An asset is not recognised to the extent that the transfer of economic benefits in the future is uncertain. Any liability to deferred tax is provided at the average rate of tax expected to apply based on tax rates and laws that have been enacted or substantially enacted at the balance sheet date. Deferred tax assets and liabilities are not discounted to reflect the time value of money.

g) Foreign currencies

Assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date.

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.

All exchange differences arising from the above are included in the Profit and Loss Account.

h) Value Added Tax

The company is registered for Value Added Tax. All income and expenditure where recoverable is stated net of Value Added Tax; all expenditure where the Value Added Tax is not recoverable is stated including Value Added Tax.