All investment properties are measured at fair value, which is determined annually based on current market rents and investment yields for comparable properties. Adjustments are made where necessary to reflect differences in the nature, location, or condition of the individual assets. Depreciation is not charged on investment properties.
Changes in fair value are recognised in the profit and loss account. Corresponding amounts are transferred to a separate non-distributable revaluation reserve, which is ring-fenced from distribution.
The fair value of the investment property at the balance sheet date was £1,682,703. This valuation has been determined by the directors based on their knowledge of the property, current market conditions, and recent market evidence for similar assets. No external valuation was undertaken during the year.
A revaluation surplus of £432,934 has been recognised in the profit and loss account. An equivalent amount has been transferred to a non-distributable revaluation reserve after the deffered taxation.
Deferred taxation is recognised at each valuation period. The measurement of deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.