Observer Basement Limited
Company Registration No. 14362323 (England And Wales)
Unaudited Financial Statements
Year Ended 31 July 2023
OBSERVER BASEMENT LIMITED
Observer Basement Limited
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 5
OBSERVER BASEMENT LIMITED
Observer Basement Limited
BALANCE SHEET
- 1 -
2023
Notes
£
£
Fixed assets
Investment property
3
131,565
Current assets
Debtors
4
1,785
Cash at bank and in hand
20
1,805
Creditors: amounts falling due within one year
5
(34,382)
Net current liabilities
(32,577)
Total assets less current liabilities
98,988
Creditors: amounts falling due after more than one year
6
(100,000)
Net liabilities
(1,012)
Capital and reserves
Called up share capital
20
Profit and loss reserves
(1,032)
Total equity
(1,012)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
OBSERVER BASEMENT LIMITED
Observer Basement Limited
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 30 April 2024
Mr S J Haigh
Director
Company registration number 14362323 (England and Wales)
OBSERVER BASEMENT LIMITED
Observer Basement Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 3 -
1
Accounting policies
Company information
The company was incorporated on 16 September 2022 and commenced trading on 20 March 2023. These are the first accounts and cover the period from incorporation to 31 July 2023. The registered office is 78 Maliston Road, Gt Sankey, Warrington, Cheshire, United Kingdom, WA5 1JS.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
This is the first year of accounts and although the company has made a losstrue, at the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.4
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
OBSERVER BASEMENT LIMITED
Observer Basement Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to 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.
Basic financial assets
Basic financial assets, which include debtors, cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
OBSERVER BASEMENT LIMITED
Observer Basement Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
Number
Total
1
3
Investment property
2023
£
Fair value
At 16 September 2022
Additions
131,565
At 31 July 2023
131,565
The property was acquired in March 2023 and the director does not consider that the value had changed by 31 July 2023.
4
Debtors
2023
Amounts falling due within one year:
£
Other debtors
1,785
5
Creditors: amounts falling due within one year
2023
£
Other creditors
34,382
6
Creditors: amounts falling due after more than one year
2023
£
Bank loans and overdrafts
100,000