AA7 DESIGN WORKSHOP LTD
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Notes to the Accounts |
for the period from 21 July 2017 to 31 July 2018
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts. Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
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Fixtures, fittings, tools and equipment |
25% reducing balance |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
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2 |
Going concern |
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Notwithstanding the net asset deficiency, the financial statements have been prepared on a going concern basis, as in the opinion of the director, the company has sufficient financial support from its creditors and shareholder to pay its debts as they fall due. |
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3 |
Employees |
2018 |
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Number |
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Average number of persons employed by the company |
3 |
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4 |
Tangible fixed assets |
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Plant and machinery etc |
£ |
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Cost |
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Additions |
1,489 |
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At 31 July 2018 |
1,489 |
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Depreciation |
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Charge for the period |
372 |
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At 31 July 2018 |
372 |
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Net book value |
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At 31 July 2018 |
1,117 |
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5 |
Debtors |
2018 |
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£ |
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Trade debtors |
2,494 |
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6 |
Creditors: amounts falling due within one year |
2018 |
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£ |
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Bank loans and overdrafts |
731 |
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Trade creditors |
601 |
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Taxation and social security costs |
391 |
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Other creditors |
28,486 |
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30,209 |
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7 |
Loan from Director and related party transactions |
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As at 31 July 2018, the balance of the Director's loan account of Mr. Ahmed Al-Azzawi was in credit of £27,287 as disclosed under the other creditors in note 6 above.
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8 |
Controlling party |
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The company was under the control of Mr Ahmed Al-Azzawi. the director and the shareholder throughout the period.
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9 |
Other information |
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AA7 DESIGN WORKSHOP LTD is a private company limited by shares and incorporated in England. Its registered office is: |
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Crown House |
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27 Old Gloucester Street |
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London |
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WC1N 3AX |