IRIS Accounts Productionv25.1.3.3304601584Board of Directors1.10.2330.9.2430.9.24representative body for managers and sponsors of real estate funds.00falsetruetruefalsefalsefalsetruefalse iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh046015842023-09-30046015842024-09-30046015842023-10-012024-09-30046015842022-09-30046015842022-10-012023-09-30046015842023-09-3004601584ns15:EnglandWales2023-10-012024-09-3004601584ns14:PoundSterling2023-10-012024-09-3004601584ns10:Director12023-10-012024-09-3004601584ns10:CompanyLimitedByGuarantee2023-10-012024-09-3004601584ns10:SmallEntities2023-10-012024-09-3004601584ns10:Audited2023-10-012024-09-3004601584ns10:SmallCompaniesRegimeForDirectorsReport2023-10-012024-09-3004601584ns10:SmallCompaniesRegimeForAccounts2023-10-012024-09-3004601584ns10:FullAccounts2023-10-012024-09-300460158412023-10-012024-09-3004601584ns10:Director22023-10-012024-09-3004601584ns10:Director32023-10-012024-09-3004601584ns10:Director52023-10-012024-09-3004601584ns10:Director62023-10-012024-09-3004601584ns10:Director72023-10-012024-09-3004601584ns10:Director82023-10-012024-09-3004601584ns10:Director92023-10-012024-09-3004601584ns10:Director102023-10-012024-09-3004601584ns10:Director112023-10-012024-09-3004601584ns10:Director122023-10-012024-09-3004601584ns10:CompanySecretary12023-10-012024-09-3004601584ns10:RegisteredOffice2023-10-012024-09-3004601584ns10:Director42023-10-012024-09-3004601584ns5:CurrentFinancialInstruments2024-09-3004601584ns5:CurrentFinancialInstruments2023-09-3004601584ns5:RetainedEarningsAccumulatedLosses2024-09-3004601584ns5:RetainedEarningsAccumulatedLosses2023-09-3004601584ns5:ComputerSoftware2023-10-012024-09-3004601584ns5:OwnedAssets2023-10-012024-09-3004601584ns5:OwnedAssets2022-10-012023-09-3004601584ns5:ComputerSoftware2022-10-012023-09-3004601584112023-10-012024-09-3004601584112022-10-012023-09-3004601584122023-10-012024-09-3004601584122022-10-012023-09-3004601584ns5:ComputerSoftware2023-09-3004601584ns5:ComputerSoftware2024-09-3004601584ns5:ComputerSoftware2023-09-3004601584ns5:PlantMachinery2023-09-3004601584ns5:PlantMachinery2023-10-012024-09-3004601584ns5:PlantMachinery2024-09-3004601584ns5:PlantMachinery2023-09-3004601584ns5:WithinOneYearns5:CurrentFinancialInstruments2024-09-3004601584ns5:WithinOneYearns5:CurrentFinancialInstruments2023-09-3004601584ns5:RetainedEarningsAccumulatedLosses2023-09-3004601584ns5:RetainedEarningsAccumulatedLosses2023-10-012024-09-300460158412023-10-012024-09-30

REGISTERED NUMBER: 04601584 (England and Wales)
















Report of the Directors and

Financial Statements for the Year Ended 30 September 2024

for


The Association of Real Estate Funds


The Association of Real Estate Funds (Registered number: 04601584)







Contents of the Financial Statements

for the Year Ended 30 September 2024





Page



Company Information  

1



Report of the Directors  

2



Report of the Independent Auditors  

5



Income Statement  

9



Balance Sheet  

10



Notes to the Financial Statements

11




The Association of Real Estate Funds


Company Information

for the Year Ended 30 September 2024









DIRECTORS:

K M Aitchison


P Alonzi


Ms A K Breen


E A Craston


A R Dryer


A P Grigson


T A Pinnell


P A Richards


Ms L Sherriffs


W A Hill


Ms R L Middleton







SECRETARY:

Oculus Accountancy Ltd







REGISTERED OFFICE:

71-75 Shelton Street


London


WC2H 9JQ







REGISTERED NUMBER:

04601584 (England and Wales)







AUDITORS:

Forvis Mazars LLP


30 Old Bailey


London


EC4M 7AU


The Association of Real Estate Funds (Registered number: 04601584)


Report of the Directors

for the Year Ended 30 September 2024


The directors present their report with the financial statements of the company for the year ended 30 September 2024.


EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.


DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report.


K M Aitchison

P Alonzi

Ms A K Breen

E A Craston

A R Dryer

A P Grigson

T A Pinnell

P A Richards

Ms L Sherriffs

W A Hill

Ms R L Middleton


Other changes in directors holding office are as follows:


A D Benedict - resigned 21 March 2024



The Association of Real Estate Funds (Registered number: 04601584)


Report of the Directors- continued

for the Year Ended 30 September 2024


BUSINESS REVIEW AND FUTURE DEVELOPMENTS

During the year, AREF continued to issue membership subscriptions to full, affiliate and associate members. At 30 September 2024, there were 50 full members (2023: 51), 45 affiliate members (2023: 45) and 5 associate members (2023: 5).


We did see a small number of member resignations last year, the majority of which came from long-anticipated fund closures or ownership changes.  We also gained a number of members, particularly affiliates. There have been some membership changes since the year- end which have led to a sight loss of membership overall but have not had a material impact on AREF's finances.


Last year we signaled that we would be looking at a range of solutions that would allow us to secure operational efficiencies.  Accordingly, in August 2024 we completed our move away from the Investment Association as a provider of business services and accommodation.  We have procured our own service providers and moved to a serviced office, making significant cost savings.  This has also greatly increased team cohesion and morale.


With the pandemic long behind us, we remain settled in a hybrid online/in-person pattern for events and committees, although we notice a continuing increase in people attending in-person.  Recordings are now available for most of our panel events and these are proving a popular way of accessing our content for those unable to attend at the time.  A full report on all our many activities during the year and the work of the committees is available on the website.  As ever the board is very grateful for all the time given by the membership in helping make AREF the voice of the UK fund management industry.


Post-election there is a new energy in the UK policy-making world and AREF's level of engagement with policy makers has grown significantly.  There is a focus on removing the obstacles to achieving the government's homebuilding target, and we have been involved, along with other bodies, in a number of discussions with Homes England and MHCLG on the topic. The problem is multifaceted and systemic, but we believe that Government at least now has a strong understanding of what needs to be addressed.


The challenge of enabling UK DC pension funds to gain access to real estate and other illiquid assets remains.  Members are active in developing solutions and we can see progress being made over the past year.  Our engagement with policymakers has continued to receive strong support from members and is an important member benefit.


Challenges in the UK real estate funds market remain.  The decline in the daily traded retail sector has effectively stopped, if only because most of the remaining funds have converted to a hybrid structure.  They remain as AREF members.  The decline in property holdings by defined benefit schemes has slowed but continues.  We expect to see a reduction in the number of balanced open-ended funds in the coming years, alongside a growth in the number of small specialist funds, particularly in the residential sector.  The balance of AREF's membership can be expected to change accordingly in the coming years as these structural changes play out.  We continue to work on growing our membership among new funds in the residential sector.


The factors outlined above have resulted in a broadly net neutral effect on AREF's finances.  We expect to make a small loss in the 2024-2025 financial year but our reserves remain at an adequate level.


Lastly, AREF's Board is at the early stage of discussions with the Boards of two fellow UK property trade associations, the British Property Federation and the Investment Property Forum, about the possible creation of a new body to represent the UK real estate industry.  All three organisations have worked closely together for many years and the discussion will continue throughout the year.  In the meantime all three organisations are conducting business as usual for 2025.


DIRECTORS' INDEMNITY

The directors have been covered by third party liability insurance throughout the year end and the policy of insurance remains in force.



The Association of Real Estate Funds (Registered number: 04601584)


Report of the Directors- continued

for the Year Ended 30 September 2024


STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Directors' report and the financial statement in accordance with applicable law and regulations.


Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". Under Company law, the directors must not approve the financial statement unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:


  - select suitable accounting policies and apply them consistently;

  - make judgements and accounting estimates that are reasonable and prudent;

  - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

  - prepare the financial statements on the going concern basis unless they either intend to liquidate the company or to cease the operations, or have no realistic alternative but to do so.


The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statement comply with the companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors are also responsible steps for the prevention and detection of fraud and other irregularities. The directors are also responsible for the maintenance and integrity of the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors,  Forvis Mazars LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.


The company has taken an exemption from preparing the Strategic Report in accordance with S414B of the Companies Act 2006.


This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.


ON BEHALF OF THE BOARD:






Ms A K Breen - Director



16 May 2025


Independent Auditor's Report

The Association of Real Estate Funds


Opinion

We have audited the financial statements of The Association of Real Estate Funds (the 'company') for the year ended 30 September 2024 which comprise the Income Statement, Balance Sheet and notes to the Financial Statements, including a summary of significant accounting policies.


The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In ou opinion the financial statements:

-

give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its deficit for the year then ended;

-

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-

have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report.  We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information

The other information comprises the information included in the Report of the Directors, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extend otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.


Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-

the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Report of the Directors has been prepared in accordance with applicable legal requirements.


Independent Auditor's Report

The Association of Real Estate Funds



Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors.


We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:


- adequate accounting records have not been kept, or returns adequate for our audit have not been received from

branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit; or

- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Report of the Directors and from the requirement to prepare a Strategic Report,


Responsibilities of directors

As explained more fully in the statement of directors' responsibilities set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Independent Auditor's Report

The Association of Real Estate Funds



Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.


Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: UK tax legislation, anti- bribery and anti- money laundering regulation.


To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non- compliance, our procedures included, but were not limited to:


- Inquiring of management and, where appropriate, those charged with governance, as to whether the company is  in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;


- Inspecting correspondence, if any, with relevant licensing or regulatory authorities;


- Communicating identified laws and regulations to the engagement team and remaining alert to any indications of  non- compliane throught our audit; and


- Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.



We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, the Companies Act 2006.


In addition, we evaluated the directors' and management's incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition, and significant one-off or unusual transactions.


Our audit procedures in relation to fraud included but were not limited to:


- Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or  alleged fraud;


- Gaining an understanding of the internal controls established to mitigate risks related to fraud;


- Discussing amongst the engagement team the risks of fraud; and


- Addressing the risks of fraud through management override of controls by performing journal entry testing.



There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non- detection of irregularities, as there may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.


Independent Auditor's Report

The Association of Real Estate Funds



Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body for our audit work, for this report, or for the opinions we have formed.





Diego Fernandez (Senior Statutory Auditor)

for and on behalf of Forvis Mazars LLP

30 Old Bailey

London

EC4M 7AU


16 May 2025


The Association of Real Estate Funds (Registered number: 04601584)


Income Statement

for the Year Ended 30 September 2024



30.9.24


30.9.23


Notes

£   

£   



TURNOVER

3

1,101,704


1,011,658




Cost of sales

(161,728

)

(118,072

)


GROSS SURPLUS

939,976


893,586




Administrative expenses

(1,008,468

)

(1,010,205

)


OPERATING DEFICIT

5

(68,492

)

(116,619

)



Interest receivable and similar income

13,379


3,254



DEFICIT BEFORE TAXATION

(55,113

)

(113,365

)



Tax on deficit

6

(2,542

)

(651

)


DEFICIT FOR THE FINANCIAL YEAR

(57,655

)

(114,016

)



The Association of Real Estate Funds (Registered number: 04601584)


Balance Sheet

30 September 2024



30.9.24


30.9.23


Notes

£   

£   


FIXED ASSETS

Intangible assets

7

-


1,444



Tangible assets

8

2,574


433



2,574


1,877




CURRENT ASSETS

Debtors

9

121,755


120,429



Cash at bank

10

604,532


679,845



726,287


800,274



CREDITORS

Amounts falling due within one year

11

(336,563

)

(352,198

)


NET CURRENT ASSETS

389,724


448,076



TOTAL ASSETS LESS CURRENT

LIABILITIES

392,298


449,953




RESERVES

Income and expenditure account

12

392,298


449,953



392,298


449,953




The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regimeand in accordance with the provisions of FRS 102 Section 1A-Small Entities.  


The financial statements were approved by the Board of Directors and authorised for issue on 16 May 2025 and were signed on its behalf by:






Ms A K Breen - Director



The Association of Real Estate Funds (Registered number: 04601584)


Notes to the Financial Statements

for the Year Ended 30 September 2024


1.

STATUTORY INFORMATION



The Association of Real Estate Funds is a private company, limited by guarantee , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.



From 1st October 2024 to 2nd September 2024 the company's registered office address was Camomile Court, 23 Camomile Street, London EC3A 7LL.



The principal activity of the company is to be a representative body for managers and sponsors of real estate funds.


2.

ACCOUNTING POLICIES



Basis of preparing the financial statements


These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.    



The company is in discussions with two other associations to form a new organisation, which in the directors'


opinion will not negatively affect the company's financial situation. The directors believe that the use of the going concern basis of accounting is appropriate because there are no material uncertainties related to events or conditions that may cast significant doubt over the ability of the company to continue as a going concern.



Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover comprises revenue recognised by the company in respect of services supplied, exclusive of Value Added Tax and trade discounts.

Deferred Income

Revenue is generally invoiced in advance of the period it relates to. It is apportioned evenly over the period in which it relates to, mainly over twelve months; the portion of income relating to future periods is deferred.

Rendering of services

Revenue 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 both of the following conditions are satisfied:

- the amount of revenue that can be measured reliably;
- it is probable that the company will receive the consideration due under the contract.


Intangible assets

Intangible fixed assets are stated at historical cost less amortisation and any accumulated impairment losses.
Amortisation is charges to allocate the cost of assets less their residual value over their estimated useful lives, under the straight line method. Amortisation is provided under the following basis:

Software development: Straight line over 3 years

The assets' residual values, useful lives and depreciation and amortisation methods are reviewed, and adjusted if appropriate, if there is an indication of a significant change since the last reporting date.


The Association of Real Estate Funds (Registered number: 04601584)


Notes to the Financial Statements - continued

for the Year Ended 30 September 2024


2.

ACCOUNTING POLICIES - continued



Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged to allocate the cost of assets less their residual value over their estimated useful lives, under the straight line method. Depreciation is provided under the following basis:

Computer equipment - Straight line over 3 years


Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

Derecognition of financial assets and liabilities

Financial assets are derecognised when and only when (a) the contractual rights to the cash flows from the financial asset expire or are settled, (b) the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or (c) the company despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.


Interest Income

Interest Income is recognised in the profit and loss account using the effective interest method.


Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.


Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.


The Association of Real Estate Funds (Registered number: 04601584)


Notes to the Financial Statements - continued

for the Year Ended 30 September 2024


2.

ACCOUNTING POLICIES - continued



Critical accounting judgements and key sources of estimation uncertainty


The preparation of the company's financial statements requires the directors to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the reporting date. The estimates and associated assumptions are based on historical experience, expectations of future events and other factors that are considered to be relevant.



However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asses or liabilities affected.



The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.



There were no key sources of estimation uncertainty and no critical accounting judgements were made during the year.


3.

TURNOVER


Total revenue is made up of the following:


20242023
Membership£   £   
Full membership615,825609,817
Affiliate membership254,666234,508
Associate membership27,867 24,583
898,358868,908
Events
Annual Dinner95,36397,950
Miscellaneous107,98344,800
203,346142,750
1,101,7041,011,658

4.

EMPLOYEES AND DIRECTORS


The Average number of employees during the year was 0 (2023:0).

In September 2024 the company directly employed 7 individuals, 3 of whom are directors. Prior to September 2024, these 7 individuals were employed by The Investment Association, with 5 of those being seconded to the company and their salaries were recharged by The Investment Association. (2023: 3).

During the one month of direct employment, the remuneration paid to the 3 directors by the company directly was £20,800. (2023: £0)

5.

OPERATING DEFICIT



The operating deficit is stated after charging:



30.9.24


30.9.23

£   

£   



Depreciation - owned assets

313


96




Software development amortisation

1,444


2,167




Auditors' remuneration  

8,400


8,000




Other fees paid to auditors  

6,377


10,631




The Association of Real Estate Funds (Registered number: 04601584)


Notes to the Financial Statements - continued

for the Year Ended 30 September 2024


6.

TAXATION



Analysis of the tax charge


The tax charge on the deficit for the year was as follows:


30.9.24


30.9.23

£   

£   



Current tax:


UK corporation tax

2,542


651




Tax on deficit

2,542


651





Reconciliation of total tax charge included in profit and loss


The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:



30.9.24


30.9.23

£   

£   



Deficit before tax

(55,113

)

(113,365

)



Deficit multiplied by the standard rate of corporation tax in the UK of 19%

(2023 - 19%)  

(10,471

)

(21,539

)




Effects of:


Expenses not deductible for tax purposes

222,278


213,943




Income not taxable for tax purposes

(209,324

)

(192,215

)



Adjustments to tax charge in respect of previous periods

59


32




Fixed asset differences  

-


430




Total tax charge

2,542


651




7.

INTANGIBLE FIXED ASSETS


Software


development

£   



COST


At 1 October 2023


and 30 September 2024

71,894




AMORTISATION


At 1 October 2023

70,450




Amortisation for year

1,444




At 30 September 2024

71,894




NET BOOK VALUE


At 30 September 2024

-




At 30 September 2023

1,444




The Association of Real Estate Funds (Registered number: 04601584)


Notes to the Financial Statements - continued

for the Year Ended 30 September 2024


8.

TANGIBLE FIXED ASSETS


Computer


equipment

£   



COST


At 1 October 2023

3,325




Additions

2,454




At 30 September 2024

5,779




DEPRECIATION


At 1 October 2023

2,892




Charge for year

313




At 30 September 2024

3,205




NET BOOK VALUE


At 30 September 2024

2,574




At 30 September 2023

433




9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR



30.9.24


30.9.23

£   

£   



Trade debtors

4,538


15,180




VAT receivable

72,410


80,638




Prepayments

44,807


24,611



121,755


120,429




Short term debtors are measured at transaction price, less any impairment.

10.

CASH AT BANK


30.9.24


30.9.23

£   

£   



Cash at bank

604,532


679,845





Cash is represented by deposits with financial institutions repayable without penalty on notice of not more than 24 hours.


11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR



30.9.24


30.9.23

£   

£   



Trade creditors

145,401


179,462




Tax

2,542


651




Social security and other taxes

17,396


-




Other creditors

269


-




Pension

6,291


-




Deferred income

78,854


84,442




Accruals

85,810


87,643



336,563


352,198




The Association of Real Estate Funds (Registered number: 04601584)


Notes to the Financial Statements - continued

for the Year Ended 30 September 2024


12.

RESERVES


Income


and


expenditure


account

£   




At 1 October 2023

449,953




Deficit for the year

(57,655

)



At 30 September 2024

392,298




13.

POST BALANCE SHEET EVENTS


There are no post balance sheet events after the reporting date requiring disclosure.

14.

COMPANY STATUS- LIMITED BY GUARANTEE



The company is a private company limited by guarantee and consequentially does not have any share capital. Each of the full members are liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.


15.

RELATED PARTY TRANSACTIONS



There were no related party transactions other than the following:







2024


2023






£


£




Edmund Crasto


0


17,365




Paolo Alonzi Consulting Ltd


950


8,550




William Hill Consulting Ltd


0


16.683






Edmund Craston invoiced for services as an Independent Non- Executive Director. Paolo Alonzi Consulting Ltd invoiced for services of Paolo Alonzi as a consultant.



William Hill Consulting invoiced for services of William Hill as an Independent Non- Executive Director.  As at 30 September 2024 nil was due to Paolo Alonzi Consulting Ltd (2023: £2,123) and nil was due to William Hill Consulting Limited (2023: £4,800). No balances due to the other related party (2023:nil).