The accounts have been prepared under the historical cost accounting convention.
The company has no income or expenditure in its own right, all transactions in the year being related to the maintenance of the common parts in accordance with the lease.
Service charges collected are held on trust for the purpose of meeting the relevant costs in relation to the property in accordance with the provisions in section 42 of the Landlord & Tenant Act 1987.
The assets shown in the company's balance sheet at the year end are held on trust for the lessees and the liabilities are the responsibility of the lessees.