Company registration number:
for the Year Ended
R & E Kingman & Son Limited
Contents
Balance Sheet |
|
Notes to the Financial Statements |
R & E Kingman & Son Limited
(Registration number: 08234219)
Balance Sheet as at 31 March 2018
Note |
2018 |
(As restated) |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Biological assets |
|
|
|
|
|
||
Current assets |
|||
Biological assets |
|
|
|
Stocks |
|
|
|
Debtors |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
|||
Deferred tax liabilities |
(66,867) |
(60,675) |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss reserve |
|
|
|
Total equity |
|
|
Page 1
R & E Kingman & Son Limited
(Registration number: 08234219)
Balance Sheet as at 31 March 2018
For the financial year ending 31 March 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
|
• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.
Approved and authorised by the
|
Page 2
R & E Kingman & Son Limited
Notes to the Financial Statements
for the Year Ended 31 March 2018
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements are presented in Sterling (£).
Prior period errors
Prior period errors are accounted for retrospectively by restating the comparative amounts for the prior period.
Turnover recognition
Turrnover comprises the fair value of the consideration recieved or recievable for the sale of milk, livestock and the receipt of government grants. Turnover is shown net of VAT and is recognised at the point of dispatch for the sale of milk and livestock and in the period to which the government grant relates.
Government grants
Income from government grants is recognised within turnover when the conditions for receipt have
been complied with and there is reasonable assurance that the grant will be received.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Page 3
R & E Kingman & Son Limited
Notes to the Financial Statements
for the Year Ended 31 March 2018
Deferred tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.
Tangible assets
Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation of tangible assets
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Land and buildings |
5% straight line |
Plant & Machinery |
15% reducing balance |
Biological non-current assets
Biological assets held for continuing use within the business are classified as fixed assets. Such assets are measured at cost less accumulated depreciation and impairment. Assets within the classification comprise of a dairy production herd.
Page 4
R & E Kingman & Son Limited
Notes to the Financial Statements
for the Year Ended 31 March 2018
Depreciation of biological non-current assets
Depreciation is charged so as to write off the cost of assets, less their estimated selling price less costs to sale, over their estimated useful economic life as follows:
Asset class |
Depreciation method and rate |
Dairy production herd |
20% straight line basis |
Biological current assets
Biological assets not held for continuing use within the business are classified as current assets. Such assets are measured at cost less accumulated impairment. Assets within this classification comprise of dairy followers and lambs.
Basic Payment Scheme
Basic payment scheme (BPS) entitlements are initially recognised at cost. Cost for originally granted BPS entitlements, is the fair value on transition to FRS102 and has been recognised through a debit to intangible assets and a credit to deferred income. Both purchased and granted entitlements are subsequently measured at cost less accumulated amortisation and impairment losses. For granted BPS, deferred income is released to the profit and loss as other operating income at the same rate at which the intangible asset is amortised.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual
value, over their useful life as follows:
Asset class |
Amortistion method and rate |
Basic Payment Scheme entitlements |
8 years straight line |
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks comprising deadstock such as feed, fertiliser and fuel are stated at the lower of cost and estimated selling price less costs to complete and sell.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Page 5
R & E Kingman & Son Limited
Notes to the Financial Statements
for the Year Ended 31 March 2018
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.
The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Staff numbers |
The average number of persons employed by the company (including directors) during the year was
Page 6
R & E Kingman & Son Limited
Notes to the Financial Statements
for the Year Ended 31 March 2018
Prior period errors |
On transition to FRS 102 Section 1a, the company omitted to recognise the change in classification and measurement of non-current and current biological assets and BPS entitlements as at 1 April 2015. The error has been corrected retrospectively and the effect on the line items of the financial statements are as follows:
Relating to the current period disclosed in these financical statements |
Relating to the prior period disclosed in these financical statements |
Relating to periods before the prior period disclosed in these financical statements |
|||
£ |
£ |
£ |
|||
Intangible assets |
15,548 |
18,657 |
21,766 |
||
Non-current biological assets |
493,746 |
442,602 |
389,435 |
||
Fixed assets - Herd basis |
493,746 |
449,644 |
389,435 |
||
Current biological assets |
63,088 |
82,345 |
65,261 |
||
Stocks |
63,088 |
82,345 |
65,261 |
||
Creditors: Amounts falling due with one year |
15,548 |
18,657 |
21,766 |
||
Profit and loss reserve |
- |
7,043 |
- |
Intangible assets
On transition to FRS 102 Section 1A, BPS entitlements of £24,875 were not recognised at the transition date in the 31 March 2017 financial statements. These entitlements have now been recognised in the comparative period at a fair value of £21,766 on 1 April 2016. After annual amortisation charges, the restated net book value as at 31 March 2017 and 2018 is £18,657 and £15,548 respectively. Current liabilities have also been restated to recognise a the corresponding entry to the above is a credit to deferred income, which is recognised within current liabilities, resulting in a nil impact on the net balance sheet position.
Non-current biological assets
On transition to FRS 102 Section 1A, non-current biological assets of £357,975 were incorrectly classified as stock. These biological
assets are now held at a value of £389,435, having been measured at cost less accumulated depreciation, on 1 April 2016. After reported movements in the year, the restated net book value as at 31 March 2017 and 2018 is £442,602 and £493,746 respectively.
The profit and loss reserve has also been restated to recognise the re-measurement of non-current biological assets in the prior year as well as the current year by £7,043.
Page 7
R & E Kingman & Son Limited
Notes to the Financial Statements
for the Year Ended 31 March 2018
Current biological assets
On transition to FRS 102 Section 1A, current biological assets of £75,325 were incorrectly classified as stock at the transition date. These biological assets have now been presented in the comparative period at cost of £65,261 on 1 April 2016.
Intangible assets |
Basic payment scheme entitlements |
Total |
|
Cost or valuation |
||
At 1 April 2017 |
|
|
At 31 March 2018 |
|
|
Amortisation |
||
At 1 April 2017 |
|
|
Amortisation charge |
|
|
At 31 March 2018 |
|
|
Carrying amount |
||
At 31 March 2018 |
|
|
At 31 March 2017 |
|
|
Basic Payment Scheme Entitlements
The amortisation charge for the year is recognised within depreciation in the profit and loss. Deferred income has been released to the profit and loss and is recognised as other operating income. The net effect in the profit and loss for the year is £Nil.
Page 8
R & E Kingman & Son Limited
Notes to the Financial Statements
for the Year Ended 31 March 2018
Tangible assets |
Land and buildings |
Plant and machinery |
Total |
|
Cost or valuation |
|||
At 1 April 2017 |
|
|
|
Additions |
|
|
|
Disposals |
- |
( |
( |
At 31 March 2018 |
|
|
|
Depreciation |
|||
At 1 April 2017 |
- |
|
|
Charge for the year |
|
|
|
Eliminated on disposal |
- |
( |
( |
At 31 March 2018 |
|
|
|
Carrying amount |
|||
At 31 March 2018 |
|
|
|
At 31 March 2017 |
|
|
|
Included within the net book value of land and buildings above is £138,898 (2017 - £144,139) in respect of short leasehold land and buildings.
Page 9
R & E Kingman & Son Limited
Notes to the Financial Statements
for the Year Ended 31 March 2018
Biological assets |
Dairy herd |
Total non- current assets |
Tillages |
Lambs |
Dairy followers |
Total current assets |
|
Cost or valuation |
||||||
At 1 April 2017 |
694,079 |
694,079 |
2,800 |
1,220 |
78,325 |
82,345 |
Purchases/transfers in |
39,262 |
39,262 |
- |
75 |
- |
75 |
Sales/transfers out |
- |
- |
- |
- |
(21,553) |
(21,553) |
New crop costs |
- |
- |
5,021 |
- |
- |
5,021 |
Old crop harvested |
- |
- |
(2,800) |
- |
- |
(2,800) |
At 31 March 2018 |
733,341 |
733,341 |
5,021 |
1,295 |
56,772 |
63,088 |
Depreciation |
||||||
At 1 April 2017 |
251,477 |
251,477 |
- |
- |
- |
- |
Charge for the year |
3,652 |
3,652 |
- |
- |
- |
- |
At 31 March 2018 |
255,129 |
255,129 |
- |
- |
- |
- |
Carrying amount |
||||||
At 31 March 2018 |
478,212 |
478,212 |
5,021 |
1,295 |
56,772 |
63,088 |
At 31 March 2017 |
442,602 |
442,602 |
2,800 |
1,220 |
78,325 |
82,345 |
Page 10
R & E Kingman & Son Limited
Notes to the Financial Statements
for the Year Ended 31 March 2018
Stocks |
2018 |
2017 |
|
Other stocks |
|
|
Debtors |
2018 |
2017 |
|
Trade debtors |
|
|
Other debtors |
|
|
Total current trade and other debtors |
|
|
Creditors |
Creditors: amounts falling due within one year
Note |
2018 |
2017 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Taxation and social security |
|
|
|
Corporation tax |
9,456 |
1,782 |
|
Other creditors |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Creditors: amounts falling due after more than one year
Note |
2018 |
2017 |
|
Due after one year |
|||
Loans and borrowings |
|
|
2018 |
2017 |
|
Due after more than five years |
||
After more than five years by instalments |
|
|
- |
- |
Page 11
R & E Kingman & Son Limited
Notes to the Financial Statements
for the Year Ended 31 March 2018
Loans and borrowings |
2018 |
2017 |
|
Current loans and borrowings |
||
Bank borrowings |
|
- |
Bank overdrafts |
|
|
Obligations under finance leases and hire purchase contracts |
|
|
|
|
2018 |
2017 |
|
Non-current loans and borrowings |
||
Bank borrowings |
|
|
Obligations under finance leases and hire purchase contracts |
|
|
|
|
Bank borrowings and hire purchase contracts
Bank borrowings are secured against short leasehold land and buildings held by the company.
Obligations under hire purchase contracts are secured by fixed charges over assets to which they
relate, presented within 'plant and machinery'.
Loans and borrowings due in greater than five years
Included in the loans and borrowings are the following amounts due after more than five years:
2018 |
2017 |
|
After more than five years by instalments |
|
|
Page 12
R & E Kingman & Son Limited
Notes to the Financial Statements
for the Year Ended 31 March 2018
Related party transactions |
Other transactions with directors |
J Kingman (Director and shareholder)
J Kingman maintain an interest free current account with the company which is unsecured and repayable on demand. At the balance sheet date the amount due to J Kingman was £151,763 (2017: £143,239)
R Kingman (Director and shareholder)
R Kingman maintain an interest free current account with the company which is unsecured and repayable on demand. At the balance sheet date the amount due to R Kingman was £59,468 (2017: £61,447)
E Kingman (Director and shareholder)
E Kingman maintain an interest free current account with the company which is unsecured and repayable on demand. At the balance sheet date the amount due to E Kingman was £104,589 (2017: £106,569)
Page 13