Goodwill, being the amount paid in connection with the acquisition of the business in 2010, is not being amortised.
This is a departure from the requirements of FRS 102 Section 1A in relation to intangibles and goodwill, which states that goodwill is considered to have a finite useful life and should be amortised systematically over their life.
The management has concluded that the financial statements give a true and fair view of the Company's financial position and financial performance, and that it has complied with FRS 102 in all other areas except from the departure in relation to goodwill. This departure is required to the extent necessary to give a true and fair view.
This departure from FRS 102, that goodwill has a finite useful life, is in the opinion of the directors necessary for the financial statements to present a true and fair view.
Had the prevision of FRS 102 been followed, goodwill would have been amortised over 20 years, reducing net assets by £281,835 and profits for the year by £25,960 (2022 - £25,960).