MDA HOLDINGS LTD
|
ANNUAL REPORT 2016
Accounting convention
The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting
Standard for Smaller Entities (effective January 2015).
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 2016 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, net of VAT, and is recognised in accordance with SSAP 9 ‘Stocks
and long term contracts’.
Revenue recognised from surveying, project management and engineering cost services is only recognised when the service has
been delivered to the client, the extent of which being determined by the stage of completion in a given project.
Amounts recoverable on contracts comprise cost plus attributable profit less provision for foreseeable losses. 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. When 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.
Profit on a long term contract is included in the profit and loss account where the final outcome can be assessed with reasonable
certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by
recording turnover and related costs as contract activity progresses by reference to the value of costs incurred. Full provision is
made for any loss not covered by retentions, on long term contracts in the year in which it is first foreseen.
Goodwill
Goodwill is the amount arising on acquisition of a subsidiary undertaking and business and has been fully amortised.
Tangible fixed assets
Plant and machinery etc - 50% on cost, 25% on cost and over the period of the lease.
1. Accounting Policies
22
Notes to the Consolidated
Financial Statements
For the year ended 30 September 2016
