MDA HOLDINGS LTD
|
ANNUAL REPORT 2017
Tangible fixed assets
Tangible assets are stated at cost less accumulated depreciation. Cost includes the original purchase price, costs directly attributable
to bringing the asset to its working condition for its intended use.
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life, or, if held under
a finance lease, over the lease term, which ever is the shorter.
Plant and machinery etc - 50% on cost, 25% on cost and over the period of the lease.
On disposal the difference between net proceeds and the carrying amount of the item sold is recognised in the statement of income
and is included in administrative expenses.
Taxation
Current tax is the amount of corporation tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on
the basis of tax rates and laws that have been enacted or substantively enacted by the year end.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where
transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the
balance sheet date. Timing differences are differences between the company’s taxable profits and its results as stated in the financial
statements.
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which timing differences are expected
to reverse, based on tax rates and laws that have been enacted or substantially enacted by the balance sheet date. Deferred tax is
measured on a non-discounted basis.
Foreign currencies
Foreign currency transactions of individual companies are translated at the rates ruling when they occurred. Foreign currency
monetary assets and liabilities are translated at the rates ruling at the balance sheet date. Any differences are taken to the income
statement.
The results of overseas operations and their balance sheets are translated into sterling at the rates of exchange ruling on the
balance sheet date. Exchange differences which arise from translation of the opening net assets and results of foreign subsidiary
undertakings and from translating the income statement at an average rate are taken to reserves.
Pension costs
The company contributes to a personal pension scheme for its employees. The assets of the scheme are held separately from
those of the company in an independently administered fund. The pension charge represents the amounts payable by the company
to the fund in respect of the period.
Financial instruments
Financial instruments are classified by directors as basic or advanced following the conditions in Section 11 and Section 12 of FRS
102. Basic financial instruments are recognised at amortised cost using the effective interest rate method. The company does not
have any advanced financial instruments.
26
Notes to the Consolidated
Financial Statements
(cont.)
For the year ended 30 September 2017
