REGISTERED NUMBER: |
Financial Statements for the Year Ended 31 December 2021 |
for |
R.C.Watson & Co.Limited |
REGISTERED NUMBER: |
Financial Statements for the Year Ended 31 December 2021 |
for |
R.C.Watson & Co.Limited |
R.C.Watson & Co.Limited (Registered number: 00280375) |
Contents of the Financial Statements |
for the Year Ended 31 December 2021 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
R.C.Watson & Co.Limited |
Company Information |
for the Year Ended 31 December 2021 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Trading as Xeinadin Audit |
Chartered Accountants and Statutory Auditors |
26 High Street |
Rickmansworth |
Hertfordshire |
WD3 1ER |
R.C.Watson & Co.Limited (Registered number: 00280375) |
Balance Sheet |
31 December 2021 |
31.12.21 | 31.12.20 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Investment property | 4 |
CURRENT ASSETS |
Debtors | 5 |
Investments | 6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 8 |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
R.C.Watson & Co.Limited (Registered number: 00280375) |
Notes to the Financial Statements |
for the Year Ended 31 December 2021 |
1. | STATUTORY INFORMATION |
R.C.Watson & Co.Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the modified historical cost convention in which certain assets are included at revalued amounts rather than their original cost. |
Turnover |
Turnover is measured at the fair value of the investment property rents received or receivable, net of discounts and value added taxes for the year. |
Investment property |
Investment properties are held at historic cost (including the historic cost of any improvements) and not depreciated. This represents a departure from the measurement basis set out in Financial Reporting Standard 102 Section 16 which requires that investment properties are held at fair value. |
Financial instruments |
Investments |
Listed investments are held at fair value with changes in fair value recognised in profit or loss. |
Unlisted investments are held at historical cost less impairment as fair value cannot be reliably revalued. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans recoverable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
R.C.Watson & Co.Limited (Registered number: 00280375) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | INVESTMENT PROPERTY |
Total |
£ |
COST |
At 1 January 2021 |
and 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
The directors consider the value of the investment properties to be significantly above historic cost. They do not consider the cost of a formal valuation to be a justifiable expense. |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.21 | 31.12.20 |
£ | £ |
Trade debtors |
Other debtors |
R.C.Watson & Co.Limited (Registered number: 00280375) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
6. | CURRENT ASSET INVESTMENTS |
31.12.21 | 31.12.20 |
£ | £ |
Listed investments | 2,703,535 | 2,539,662 |
Unlisted investments | 20,154 | 20,154 |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.21 | 31.12.20 |
£ | £ |
Other creditors |
8. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.21 | 31.12.20 |
value: | £ | £ |
Ordinary shares | £1 | 60,000 | 60,000 |
The company has issued 5,000 £1 preference shares with a coupon of 5.6%. These shares are treated as non-equity loans and included within Creditors: amounts falling due within one year, |
R.C.Watson & Co.Limited (Registered number: 00280375) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
9. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was qualified on the following basis: |
Basis for Qualified opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. The company is holding its investment properties at historic cost (including historic cost of any improvements) rather than fair value as required under Financial Reporting Standard 102 Section 16. In our opinion, the fair value of the properties greatly exceeds the historic cost shown on the financial statements but we are unable to quantify the departure. Therefore it is our opinion that if the required measurement basis was used there would be a significant increase in current asset investments and non-distributable reserves. |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. |
for and on behalf of |