Abbreviated Company Accounts - JRK PROPERTIES LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements are prepared under the historical cost convention modified to include the revaluation of freehold land and buildings and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The company has taken advantage of the exemption in Financial Reporting Standard No 1 from the requirement to produce a cash flow statement on the grounds that it is a small company.

The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).

Investment properties are included in the balance sheet at their open market value. Depreciation is provided only on those investment properties which are leasehold and where the unexpired lease term is less than 20 years.

Although this accounting policy is in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.

Tangible assets depreciation policy
Tangible fixed assets include investment as valued by the directors on an existing use open market value basis. Other tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:


Land and buildings Leasehold Improvements over term of lease
Plant and machinery 5 years straight line
Fixtures, fittings & equipment 4 years straight line

Investment properties are included in the balance sheet at their open market value. Depreciation is provided only on those investment properties which are leasehold and where the unexpired lease term is less than 20 years.

Other accounting policies
Investments
Fixed asset investments are stated at cost less provision for diminution in value.

Stock and work in progress
Development stocks are interests in land and buildings in respect of uncompleted developments.

Stock properties are interests in completed freehold properties that are held on a short term basis.

All stocks are valued at the lower of cost and net realisable value, after making allowances for slow and obsolete items.

Pensions
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

Deferred taxation
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
Provision has not been made for deferred tax on gains recognised on revaluing the company's investment properties to market value, as the company, at present, does not intend to sell the assets. This is in line with current GAAP.

Joint arrangements
The company develops sites under joint arrangements with various other entities, through joint venture agreements set up for this purpose. These arrangements are an extention of the company's business and are accounted for as joint arrangements, which are not an entity in accordance with Financial Reporting Standard No 9. The company accounts for its proportion of the turnover, results, assets, liabilities and cash flows measured in accordance with the terms governing the arrangements.

3Fixed assets Investments
Cost or Valuation
At 1 January 2014 33,008
Additions
Disposals (1,915)

At 31 December 2014 31,093

Net Book Value
At 31 December 2014 31,093
At 31 December 2013 33,007

6Transactions with directors

The company bought business services on standard business terms totalling £4,500 (2013 £8,250) from The Helmsley Group Limited, in which Mr W J G Reeves has a controlling interest. Amounts outstanding at the year end were £1,125 (2013 £1,350)
A loan of £150,160 has been advanced to Ms R Reeves. The loan is unsecured and carries interest at 5% per annum and is repayable on demand. Ms R Reeves is the daughter of Mr W J G Reeves a major shareholder and a director of JRK Properties Limited. Interest received during the year £8,038. (2013 £6,875). Loan outstanding at the year end £167,550 (2013 £146,295).