| BARRAT UK ESTATES LIMITED |
| Notes to the Financial Statements |
| for the year ended 31 December 2019 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The financial statements have been prepared under the historical cost convention in accordance with the accounting policies set out below. These financial statements have been prepared in accordance wish FRS102, section 1A - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover represents amounts recognised by the company in respect of rents receivable. |
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Investment properties |
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Investment properties are included at fair value. Gains are recognised in the income statement. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold. |
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Investments |
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Investments in unquoted equity instruments are measured at fair value. Changes in fair value are recognised in profit or loss. Fair value is estimated by using a valuation technique. |
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Stocks |
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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. |
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Financial instruments |
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The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
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Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for the objective evidence of impairment. If the objective evidence of impairment is found, an impairment loss is recognised in the profit and loss. |
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Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right of set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
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Debtors |
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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. |
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Cash and cash equivalents |
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Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
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Creditors |
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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. |
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Taxation |
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The tax expense for the year comprises current and deferred tax. |
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The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. |
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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. |
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Provisions |
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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. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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| 2 |
Employees |
2019 |
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2018 |
| Number |
Number |
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Average number of persons employed by the company |
2 |
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2 |
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| 3 |
Investment properties |
2019 |
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2018 |
| £ |
£ |
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Fair Value |
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Additions |
495,000 |
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- |
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At 31 December 2019 |
495,000 |
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- |
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During the year, following a share for share exchange, the investment properties were transferred from Barrat Property Limited. |
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| 4 |
Investments |
| Investments in |
| subsidiary |
| undertakings |
| £ |
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Cost |
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Additions |
1,000 |
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At 31 December 2019 |
1,000 |
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| 5 |
Debtors |
2019 |
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2018 |
| £ |
£ |
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Amounts owed by connected companies |
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24,706 |
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- |
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| 6 |
Creditors: amounts falling due within one year |
2019 |
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2018 |
| £ |
£ |
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Amounts owed to group undertakings |
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111,778 |
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- |
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Corporation tax |
3,528 |
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- |
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Other creditors |
6,134 |
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- |
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121,440 |
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- |
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| 7 |
Related party transactions |
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During the year, the company issues shares in consideration for a share for share exchange with Barrat Property Limited, a company registered in Cyprus. Barrat Property Limited is now a wholly owned subsidiary and the assets were transferred to Barrat UK Estates Limited.
The amount due to Barrat Property Limited was £111,778 (2018: £Nil). This represents working capital movement through the transfer of the investment property and dividends.
The amount from L C Mitsiou Estates Limited, a company in which L C Mitsiou is connected, was £24,706 (2018: £Nil). This represents working capital movement through the collection of rents and payment of expenses. |
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| 8 |
Controlling party |
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The ultimate controlling party is L C Mitsiou. |
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| 9 |
Other information |
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BARRAT UK ESTATES LIMITED is a private company limited by shares and incorporated in England whose registered office is 1st Floor, 446a Green Lanes, London N13 5XD. |
