BACK2BOWEN LIMITED |
Notes to the Accounts |
for the year ended 31 October 2023 |
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1 |
Accounting policies |
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Accounting convention |
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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. |
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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 £. |
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The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. |
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Turnover |
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Turnover represents the rental income receivable. Rental income is recognised in accordance with the terms of the lease. |
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Investment properties |
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Investment property, which is property held to earn rentals and/or for capital appreciation, is recognised at cost, which includes the purchase cost and any directly attributable expenditure. |
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Cash and cash equivalents |
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Cash and cash equivalents are basic financial instruments 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. |
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Financial instruments |
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The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. |
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Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. |
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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. |
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1 |
Accounting policies (Continued) |
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Basic financial assets |
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Basic financial assets, which include other debtors and 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest. |
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Classification of financial liabilities |
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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. |
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Basic financial liabilities |
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Basic financial liabilities, including other creditors and mortgage loans, 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. |
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Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
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Equity instruments |
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Equity instruments issued by the company are recorded at the fair value of 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. |
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Taxation |
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The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable. |
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Current and deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity. |
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Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on the net basis or to realise the asset and settle the liability simultaneously. |
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Current tax is based on taxable profit for the year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date. |
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Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date. |
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Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits. |
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2 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the company |
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Total (including Directors) |
2 |
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2 |
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3 |
Investment property |
2023 |
£ |
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Cost |
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At 1 November 2022 |
800,115 |
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Revaluations |
- |
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At 31 October 2023 |
800,115 |
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The investment property is stated at the historic cost and is not depreciated |
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The investment property is let out to tenants under operating leases. |
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4 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Other debtors |
1,865 |
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661 |
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5 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Bank loans and overdrafts |
38,281 |
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29,760 |
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Trade creditors |
22,619 |
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30,890 |
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Taxation and social security costs |
- |
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4,734 |
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Other creditors |
50,000 |
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- |
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110,900 |
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65,384 |
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6 |
Creditors: amounts falling due after one year |
2023 |
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2022 |
£ |
£ |
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Bank loans |
384,380 |
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396,085 |
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Other creditors |
318,200 |
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318,200 |
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702,580 |
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714,285 |
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Creditors include: |
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Instalments falling due for payment after more than five years |
231,255 |
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280,085 |
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7 |
Related party transactions |
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Transactions with related parties |
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During the year the company entered into the following transactions with related parties: |
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2023 |
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2022 |
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Amounts due to related parties |
£ |
£ |
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Key management personnel |
269,558 |
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219,558 |
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The amounts owed to key management personnel are amounts loaned to the company. |
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The loans are interest free and repayable following redemption of the bank loans. |
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7 |
Other information |
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BACK2BOWEN LIMITED is a private company limited by shares and incorporated in England. Its registered office is: |
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15 Canonbury Park North |
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London |
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N1 2JZ |