Investment Property
The company owns a property which is located at 246 Broadlands road Swaythling Southhampton (SO17 3AS), which is rented out to students on a short-term basis, typically aligned with academic terms.
The property is classified as an investment property in accordance with accounting standard FRS 102 Section 16, as it is held to earn rental income and for capital appreciation.
Valuation:
The property is stated at cost, and any depreciation/fair value changes are recognised in the financial statements as required by the applicable accounting framework.
Rental Income:
Rental income from the property is recognised on an accruals basis over the term of the tenancy agreements.
Expenses:
Expenses related to the property, including maintenance and utilities where applicable, are charged to the profit and loss account as incurred.
Taxation:
The rental income is subject to corporation tax in line with the company’s taxable profit.