Although the Companies Act requires the systematic annual depreciation of fixed assets, the directors believe that the policy of not applying depreciation provides a true and fair view of the financial statements. The reason for this approach is that the property’s market value and any changes therein are more relevant than a standardized depreciation charge.
The freehold property is subject to an annual valuation, which considers various factors, including market conditions and property-specific attributes. Since depreciation is only one element within the valuation process, its impact cannot be separately identified or quantified.
The directors regularly review this policy to ensure it remains appropriate and in line with the Company’s financial reporting requirements.