Intouch Property Investing Ltd |
Notes to the Accounts |
for the year ended 31 May 2024 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover represents rental income received in the period. |
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Investment property |
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Investment properties are shown at their most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the profit and loss. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Freehold buildings |
over 50 years |
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Leasehold land and buildings |
over the lease term |
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Plant and machinery |
over 5 years |
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Fixtures, fittings, tools and equipment |
over 5 years |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Financial Instruments |
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The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
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(i) Financial assets |
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Basic financial assets, including trade and other receivables, cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financial transaction, where the transaction is measured at the present value of the future receipts discounted at the market rate of interest. |
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Such assets are subsequently carried at amortised cost using the effective interest method. |
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At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the profit and loss. |
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If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
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Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or settled, or (b) substantially all the risks and rewards of the ownwership of the asset are transferred to another party, or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
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(ii) Financial liabilities |
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Basic financial liabilities, including trade and other payables, bank 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 receipts discounted at a market rate of interest. |
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Financial Instruments (continued) |
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Debt instruments are subsequently carried at amortised cost, using the effective rate of interest method. |
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Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
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Derivatives, including interest rate swaps and forward foreign currency exchange contracts are not basic financial instruments. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Significant estimates and assumptions are made in particular with regard to the revaluation of investment properties by the directors and external valuers. |
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Reduced disclosure exemptions |
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The company has taken advantage of the following disclosure exemption on preparing these financial statements as permitted by FRS102: |
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the requirements of Section 7 Statement of Cash Flows |
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2 |
Employees |
2024 |
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Number |
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Average number of persons employed by the company |
1 |
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3 |
Investment Properties |
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Land and buildings |
£ |
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Valuation |
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At 1 June 2023 |
115,308 |
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At 31 May 2024 |
115,308 |
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Depreciation |
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At 31 May 2024 |
- |
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Net book value |
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At 31 May 2024 |
115,308 |
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At 31 May 2023 |
115,308 |
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The directors have valued the property based on open market value at 31st March 2024 which they consider approximates to the original cost. |
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Investment properties: |
2024 |
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£ |
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Historical cost |
115,308 |
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Cumulative depreciation based on historical cost |
- |
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115,308 |
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4 |
Creditors: amounts falling due within one year |
2024 |
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£ |
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Director's Loan |
86,374 |
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5 |
Creditors: amounts falling due after one year |
2024 |
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£ |
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Bank loans |
116,241 |
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6 |
Loans |
2024 |
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£ |
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Creditors include: |
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Instalments falling due for payment after more than five years |
116,241 |
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Secured mortgages |
116,241 |
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A first charge exists over the properties held. |
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8 |
Share Capital |
Nominal |
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2024 |
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2024 |
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value |
Number |
£ |
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Allotted, called up and fully paid: |
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Ordinary Shares |
£0.01 each |
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100 |
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1 |
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1 |
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9 |
Retained earnings |
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The split of retained earnings between distributable and non distributable is as follows: |
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Non |
Distributable |
-distributable |
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£ |
£ |
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At 1 June |
(64,782) |
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Profit for the financial year |
404 |
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Property revaluation movement |
- |
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- |
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Release on disposal |
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Property revaluation deferred tax |
- |
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- |
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Dividends |
- |
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- |
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Deferred tax on interest rate swap |
- |
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At 31 May |
(64,378) |
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- |
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7 |
Controlling party |
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L Davis is considered to be the controlling party by virtue of their directorship and shareholding. |
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11 |
Legal form of entity and country of incorporation |
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Intouch Property Investing Ltd is a private company limited by shares and incorporated in England. |
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12 |
Presentation Currency |
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The financial statements are presented in sterling. |
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8 |
Other information |
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Intouch Property Investing Ltd is a private company limited by shares and incorporated in England. It's registered office is: |
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Parker House |
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44 Stafford Road |
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Wallington |
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Surrey |
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SM6 9AA |