Rias Kingsland Limited
Notes to the financial statements
For the year ended 31 December 2023
The Company is a private company, limited by shares, incorporated and domiciled in England & Wales. The company's registered office is 2nd Floor 168 Shoreditch High Street, London, E1 6RA. The principal activity of the company continued to be that of property investment.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 following principal accounting policies have been applied:
Despite the company reporting net current liabilities of £3,000,916 (2022: £3,050,534) as at 31 December 2023, the financial statements have been prepared on a going concern basis. Included within "Creditors: amounts due within one year" is an amount of £3,110,355 (2022: £3,110,355) to the company's parent undertaking who have confirmed they will not call for repayment of this sum until the company has sufficient cash reserves to do so, without prejudice to the company's other creditors, and for a period of at least twelve months from the date of approval of the financial statements.
For this reason, the director continues to adopt the going concern basis in preparing the financial statements.
Turnover represents rents and service charges from tenants, credit for which is taken on an accrual basis excluding discounts, value added tax and other sales taxes.
Investment property is carried at fair value determined annually by the director and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
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.
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Cash and cash equivalents
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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.
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