The Purley Cricket Club Limited
Notes to the financial statements
For the year ended 31 March 2023
The company is a private limited company, incorporated and domiciled in England & Wales. The Company's registered office is 2nd Floor, 168 Shoreditch High Street, London, E1 6RA and their principal activity can be found on page 1.
2.Accounting policies
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
Turnover comprises revenue recognised by the company in respect of rental income.
Investment properties are initially measured at cost and subsequently measured at fair value where a reliable measure of fair value can be obtained without undue effort or cost. Changes in fair value will be recognised in the Statement of Comprehensive Income.
The Companies Act 2006 requires all properties to be depreciated but this conflicts with the generally accepted accounting principle set out in FRS102. The directors consider that depreciating Investment Properties would not give a true and fair view as the properties are held to generate rental income under a long-term lease, rather than for use and occupation by the company itself, and therefore no depreciation is charged.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable 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.
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are 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.
Page 2
|