UNION STREET PROPERTIES LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.ACCOUNTING POLICIES (CONTINUED)
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Rendering of services
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of turnover can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
The Company generates income from the letting of its shop and business premises situated at 84, 86, 96 and 100 Union Street, Glasgow.
A sum totalling £450,000 was received July 2015 and it has been used in the intervening period to fund Maintenance, Scaffolding, Structural Works, Planning activity and Project Management. It was believed appropriate to recognise this sum in the prior year.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Investment property is carried at fair value determined annually by external valuers 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.
USP Ltd owns the Ground Floor property at 84,86,96 and 100 Union Street, Glasgow incorporating retail units that are available for let. The property is not considered to have a positive market value currently as it is subject to a Listed Buildings Repairs Notice (LBRN) from GCC but does have a positive value if a commercial New Build project was approved. Various scheme options including updated development appraisals were submitted Feb 2020 It is believed one of these will be funded and implemented. This is expected to have a positive value and in the medium to longer term the valuation of the Ground Floor would increase proportionately.
USP Ltd in conjunction with USI Ltd continue to offer GCC, without liability, private and confidential discussions which would see the Egyptian Halls both preserved and returned to long term commercial sustainability at the least cost to the public purse, whilst also returning the investors a fair and reasonable commercial return.
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