Absolute K Limited
Registered number: 05650603
Balance Sheet
as at 31 December 2016
Notes 2016 2015
£ £
Fixed assets
Tangible assets 2 54,149 68,779
Current assets
Stocks 28,000 23,800
Debtors 3 230,822 212,190
Cash at bank and in hand 20,805 -
279,627 235,990
Creditors: amounts falling due within one year 4 (241,130) (252,496)
Net current assets/(liabilities) 38,497 (16,506)
Total assets less current liabilities 92,646 52,273
Creditors: amounts falling due after more than one year 5 (77,103) (52,751)
Provisions for liabilities (10,661) (13,564)
Net assets/(liabilities) 4,882 (14,042)
Capital and reserves
Called up share capital 200 200
Profit and loss account 4,682 (14,242)
Shareholders' funds 4,882 (14,042)
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Paul Whalley
Director
Approved by the board on 3 July 2017
Absolute K Limited
Notes to the Accounts
for the year ended 31 December 2016
1 Accounting policies
Basis of preparation
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 enmtities by section 1A of the standard).
These are the first accounts that comply with FRS 102 Section 1A small entities; the date of transition is 1 January 2015. The transition to FRS 102 Section1A small entities has not resulted in any significant changes in accounting policies nor impacted opening equity and profit for the comparative period in these accounts.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. 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.
Intangible fixed assets
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
Tangible fixed assets
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:
Plant and machinery 25% reducing balance
Motor vehicles 25% reducing balance
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
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.
Creditors
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.
Taxation
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.
Provisions
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.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Tangible fixed assets
Plant and machinery Motor vehicles Total
£ £ £
Cost
At 1 January 2016 9,620 116,446 126,066
Additions 3,671 - 3,671
Disposals - (1,783) (1,783)
At 31 December 2016 13,291 114,663 127,954
Depreciation
At 1 January 2016 7,162 50,125 57,287
Charge for the year 968 16,421 17,389
On disposals - (871) (871)
At 31 December 2016 8,130 65,675 73,805
Net book value
At 31 December 2016 5,161 48,988 54,149
At 31 December 2015 2,458 66,321 68,779
3 Debtors 2016 2015
£ £
Trade debtors 208,656 189,080
Other debtors 22,166 23,110
230,822 212,190
4 Creditors: amounts falling due within one year 2016 2015
£ £
Bank loans and overdrafts 41,485 28,747
Obligations under finance lease and hire purchase contracts 17,962 21,862
Trade creditors 62,342 122,714
Corporation tax 23,804 12,591
Other taxes and social security costs 91,274 63,629
Other creditors 4,263 2,953
241,130 252,496
5 Creditors: amounts falling due after one year 2016 2015
£ £
Bank loans 42,313 -
Obligations under finance lease and hire purchase contracts 34,790 52,751
77,103 52,751
6 Loans to directors
Description and conditions B/fwd Paid Repaid C/fwd
£ £ £ £
Directors loan account
1,093 82,663 (74,800) 8,956
1,093 82,663 (74,800) 8,956
7 Controlling party
The directors are the ultimate controlling parties of the company by virtue of their 100% ownership of the issued voting shares of the company.
8 Other information
Absolute K Limited is a private company limited by shares and incorporated in England. Its registered office is:
25 Rutland Street
Swinton
Manchester
M27 6AU
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