MDA HOLDINGS LTD
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ANNUAL REPORT 2017
25
Basis of preparing the financial statements
These financial statements have been prepared in accordance with the provisions of Section 1A “Small Entities” of Financial
Reporting Standard 102 (FRS 102 1A) “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and the
Companies Act 2006. Unless indicated otherwise in the accounting policies below, the financial statements have been prepared
under the historical cost convention.
Basis of consolidation
The consolidated financial statements incorporate the results of MDA Holdings Limited and all of its subsidiary and associated
undertakings as at 30 September 2017 using the acquisition method. Where the acquisition method is used, the results of
subsidiary undertakings are included from the date of acquisition.
Turnover
Turnover represents the net value of contract work undertaken from surveying, project management and engineering cost services,
excluding VAT. This is recognised when the service has been delivered to the client, the extent of which is determined by the stage
of completion in a given project.
Amounts recoverable on contracts comprise of the cost plus attributable profit. Cost includes direct staff costs and outlays together
with attributable overheads. In determining amounts recoverable on contracts, costs incurred to date are compared to the costs
estimated to have been incurred per the stage of completion for a project. Where the estimated costs to date are in excess of the
costs estimated to have been incurred per the stage of completion for a project, a provision is immediately recognised against the
excess costs to complete. Fees rendered on account are deducted from amounts recoverable on contracts and to the extent that
they exceed the value of work done are included in creditors as payments on account.
Intangible assets
Intangible assets relate to goodwill. Goodwill purchased on business combinations and acquisitions is the excess of the cost of the
acquisition over the interest in the net fair value of identifiable assets and liabilities acquired, and is capitalised as an asset on the
balance sheet and is recognised as an intangible fixed asset.
Goodwill has been fully amortised over its estimated useful life of 10 years. This length of time is presumed to be the maximum
useful life of purchased goodwill because it is difficult to make projections beyond this period. Goodwill is reviewed for impairment
at the end of the first full financial year following each acquisition and subsequently as and when necessary if circumstances emerge
that the carrying value may not be recoverable.
MDA Holdings Limited is a private company, limited by shares, registered in England and Wales. The company’s registered
number and registered office address can be found on the General Information page.
1. Statutory Information
2. Accounting Policies
Notes to the Consolidated
Financial Statements
For the year ended 30 September 2017
