| |
|
|
|
|
| 2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|
|
|
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements. |
|
|
|
Statement of compliance |
|
The financial statements of the company for the year ended 31 July 2019 have been prepared in accordance with the provisions of FRS 102 Section 1A (Small Entities) and the Companies Act 2006. |
|
|
|
Basis of preparation |
|
The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. |
|
|
|
Turnover |
|
Turnover represents the total invoice value, excluding value added tax, of sales and rental income received during the year. |
|
|
|
Investment properties |
|
Investment property whose fair value can be measured reliably without undue cost or effort is measured at fair value with changes in fair value recognised in the Profit and Loss Account. Revalued investment properties are not depreciated or amortised, unless the fair value cannot be measured reliably or without undue cost or effort.
Not depreciating or amortising property is a departure from the requirement of Company Law to provide depreciation on all fixed assets which have a limited useful life. However, these investment properties are not held for consumption but for investment and the director considers that systematic annual depreciation would be inappropriate. The accounting policy adopted is therefore necessary for the financial statements to give a true and fair view. If depreciation were to be provided it would be provided at a rate of Nil per annum on the revalued amount. |
|
|
|
Trade and other debtors |
|
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts. |
|
|
|
Trade and other creditors |
|
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost. |
|
|
|
Taxation |
|
Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Balance Sheet date. |
|
|
|
Ordinary share capital |
|
The ordinary share capital of the company is presented as equity. |
| |
|
|
|
| 7. |
RELATED PARTY TRANSACTIONS |
|
|
|
Included in other debtors are amounts due from a related party in which the company has a participating interest of £992,913 (2018: £2,958,962).
Amounts totalling £606,591 were received in the period. Payments totalling £2,572,640 were made in the period.
Included in other debtors are amounts due from entities over which the entity has joint control of £7,089 (2018: £7,139).
Payments totalling £50 were made in the period.
Included in other creditors are amounts due to other related parties of £227,113 (2018: £2,076,915).
Amounts of £243,172 were advanced in the period. Amounts of £2,092,974 were received in the period.
All amounts are repayable on demand. |
