The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

The company has taken advantage of the exemption, conferred by Financial Reporting Standard 1, from presenting a cash flow statement as it qualifies as a small company.

Going concern

The financial statements have been prepared on a going concern basis, the validity of which depends on the continued support of the company director and creditors.

If the going concern status proved not the be valid adjustments would have to be made to restate the value of the assets to their recoverable amount, to provide any further liabilities that may arise, and to reclassify fixed assets as current assets and long term liabilities as current liabilities. The directors have confirmed their intention to continue to support and actively trade the company for the foreseeable future.

The turnover in the profit and loss account represents the value of all steel security doors sold and repaired during the period, less returns received, at selling price exclusive of Value Added Tax. Sales are recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attached to the product, such as obsolescence, have been transferred to the customer.

Goodwill arising on the incorporation of Liddle Doors into Liddle Doors Limited was capitalised, classified as an asset on the balance sheet and amortised over its estimated useful life which is estimated to be 20 years. This length of time is presumed to be the maximum useful life of goodwill because it is difficult to make projections beyond this period. Goodwill is reviewed for impairment as and when necessary if circumstances emerge that indicate that the carrying value may not be recoverable.

Amortisation is calculated so as to write off the cost of an asset, net of anticipated disposal proceeds, over the estimated useful economic life of that asset as follows:

Goodwill            20 years straight line

Expenditure on research and development costs is written off in the year in which it is incurred.

No depreciation is charged during the year for the freehold property in accordance with the true and fair principal, the director believes that this represents a more accurate view.

Rentals payable under operating leases are charged against the to profit and loss account as they fall due.

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in first-out method and includes the normal cost of transporting stock to its present location and condition. Cost includes material and direct labour costs together with an appropriate proportion of production overheads. Net realisable value is the anticipated sales proceeds less any costs of disposal.

The company operates a money purchase (defined contribution) pension scheme. Contributions payable to the scheme are charged to the profit and loss account in the period in which they relate. These contributions are invested separately from the company's own assets.

Deferred taxation is accounted for in respect of all material timing differences that have originated but not reversed at the balance sheet date. Timing differences arise from the inclusion of gains and losses in tax assessments in periods different to those in which they are recognised in the financial statements. Deferred tax is calculated at the rate at which it is anticipated the timing differences will reverse and is measured on a non-discounted basis. Deferred tax assets are only recognised to the extent that they are regarded as recoverable.

Work in progress

Work in progress is valued on the basis of direct cost plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences as residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.

The bank loans and overdrafts of £249,830 (2015: £123,717) and hire purchase amounts of £27,927 (2015: £21,177) are secured.