ACCOUNTS - Final Accounts preparation

Registered number: 01263742

Charity number: 271665

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

CONTENTS

	Page
Reference and Administrative Details of the Company, its Trustees and Advisers	1 - 2
Trustees' Report	3 - 6
Independent Auditor's Report on the Financial Statements	7 - 10
Statement of Financial Activities	11
Balance Sheet	12
Statement of Cash Flows	13
Notes to the Financial Statements	14 - 31

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS

FOR THE YEAR ENDED 31 DECEMBER 2024

Trustees	Mr Y Nakano
	Mr S Yoshihara
	Mr K Takahiro
	Mr J Otake
	Mr D Mototani
	Mr H Saito (Appointed 1 April 2024)
	Mr K Nobuta (Appointed 1 April 2024)
	Ms S Ueda (Appointed 5 December 2024)
	Mr S Nakamura (Appointed 1 March 2025)
	Mr H Kurakagi (Appointed 1 April 2025)
	Mr T Shinohara (Appointed 1 April 2025)
	Mr T Hirano (Appointed 1 April 2025)
	Mr T Nunosawa (Appointed 1 April 2025)
	Mr Y Ishizuka (Resigned 1 March 2025)
	Ms Y Tsujimura-Higaki (Resigned 5 December 2024)
	Ms M Sunohara (Resigned 5 December 2024)
	Mr S Ichinokawa (Resigned 5 December 2024)
	Mr S Kuwata (Resigned 1 April 2024)
	Mr F Serizawa (Resigned 1 April 2024)
	Mr H Mishima (Resigned 1 April 2024)
	Mr S Ichinokawa (Resigned 5 December 2024)
	Mr H Koike (Resigned 5 December 2024)
	Mr K Nakamura (Resigned 1 April 2024)
	Mr M Sato (Resigned 1 April 2024)
	Mr S Kato (Resigned 1 April 2025)
	Ms S Nagashima (Resigned 1 April 2025)
	Mr A Takada (Resigned 1 April 2025)
	Mr F Suzuki (Resigned 1 April 2025)

Company registered number

01263742

Charity registered number

271665

Registered office

87 Creffield Road

Acton

London

W3 9PU

Company secretary

Mr T Kitada

Independent auditor

Haslers

Chartered Accountants

Old Station Road

Loughton

Essex

IG10 4PL

Page 1

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Page 2

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The Trustees present their annual report together with the audited financial statements of the Company for the 1 January 2024 to 31 December 2024. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Objectives and activities

a. Policies and objectives

The purpose of the company is to provide facilities for the education of the children of the Japanese community in the United Kingdom.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
The school had provided educational services through the Japanese School in London (JSL), a day school and the Japanese Saturday School in London (JSSL), at which classes are given on Saturdays. JSL has 300 pupils and JSSL has 1,100 pupils on three campuses. The schools’ Japanese based education is essential for the Japanese families in London, both expatriate and local.

b. Strategies for achieving objectives

The company operates the JSL (Day school) and the JSSL (Saturday supplementary school) to provide benefit to the public through its educational activities.
In providing the above educational services, the trustees of the company have had regard to the guidance issued by the Charity Commission on public benefits.

c. Activities undertaken to achieve objectives

To promote international understanding of pupils, the JSL conducted exchange programmes with schools in London, including the Greek School, Spanish School, French School and SOAS.
The school also conducted activities like Sports Day, Cultural Festival and the whole school outing for drawings to make pupils active in various fields.

Strategic report

Achievements and performance

a. Main achievements of the Company

The JSL in Acton has ca 300 pupils aged 6 – 15. The school has provided elementary and secondary pupils with a full range of curriculum in accordance with the Japanese educational ministry standard and the fundamental British values education.

Page 3

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

Achievements and performance (continued)

The JSSL has ca 1,100 pupils on three campuses, Acton, Brent and Croydon. The main subject being taught is Japanese language, with some Japanese cultural events with opportunities to experience something important for their childhood of the pupils residing in the UK.
Both schools have opportunities to act as a member of local community by delivering cards at seasonal occasions and performing Japanese songs at churches.
The exchange programmes with other schools have been conducted by the JSL in 2024. Visits from the Greek School, French School and SOAS were made, and our pupils visited SOAS.
The JSL also conducted Sports Day and Cultural Festival. Both were well attended and made parents impressed with their performance. The JSL’s whole school outing for drawings created lots of excellent pictures, which were exhibited during the Cultural Festival.
The weekly classes at the JSSL make its pupils stimulated in learning Japanese language and culture. One of the results of their years of leaning appears in their speeches at the graduation ceremony. Based on positive attitude learned in the British society, pupils deliver logical and heartful speeches with many thanks to their teachers and parents in a disciplined way.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

Current reserves excluding revaluation reserve covers 2.3 times of annual expenditure. The Company plans school facility renovation projects over 5 years from 2023, the reserve level will be reduced by 10% in the coming 5 years, with a half of the renovation costs funded by annual result.
The reserve levels have increased significantly during 2021 due to the revaluation of the land and buildings owned by the School. The level of reserves represented by the revaluation is shown separately in note 16 and is included within unrestricted funds.
Reserves will be monitored regularly by the Trustees to ensure appropriate levels of reserves are held moving forward to ensure the long term stability of the charity.

c. Investments powers

The chairman of the committee is empowered to invest the funds of the school as the committee sees fit.

d. Principal risks and uncertainties

The charity’s financial position is sound, although the number of pupils are still 15% below the level in 2018, before COVID-19.
The Trustees review the risks posed to the charity regularly and have developed a system to mitigate any impact of the risk on the school. The main risks identified include meeting the demand for pupil places, retaining sufficient levels of skilled staff and ensuring the safeguarding of pupils at the school.

Page 4

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

Financial review (continued)

e. Principal funding

The charity’s principal sources of funds are tuition fees of the schools. The charity also receives income from the Japanese Government in the form of grants. The Japanese Government funds the salary costs of seconded Japanese teachers to the school as well as funding for specific purposes such as security, facilities management and rent.

Structure, governance and management

a. Constitution

The Japanese School Limited is registered as a charitable company limited by guarantee and was set up by a Trust deed.

b. Methods of appointment or election of Trustees

The trustees are elected from the members of the company at the Annual General Meeting in accordance with the Article 27 of the Memorandum and Articles of Association of the Japanese School Limited.

c. Financial risk management

The Trustees have assessed the major risks to which the Company is exposed, in particular those related to the operations and finances of the Company and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

∙select suitable accounting policies and then apply them consistently;

∙observe the methods and principles of the Charities SORP (FRS 102);

∙make judgments and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Trustees 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 statements 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.

Page 5

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

∙so far as that Trustee is aware, there is no relevant audit information of which the charity's auditor is unaware, and

∙that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information.

Auditor

The auditor, Haslers, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.

Approved by order of the members of the board of Trustees on 15 July 2025 and signed on their behalf by:

Mr Y Nakano

(Chair of Trustees)

Page 6

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAPANESE SCHOOL LIMITED

Opinion

We have audited the financial statements of The Japanese School Limited (the 'charitable company') for the year ended 31 December 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the charitable company's affairs as at 31 December 2024 and of its incoming resources and application of resources, including its income and expenditure 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 Charities Act 2011.

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Trustees' 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 charitable 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 Trustees with respect to going concern are described in the relevant sections of this report.

Page 7

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAPANESE SCHOOL LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Trustees 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 extent 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

∙the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; or

∙sufficient accounting records have not been kept; or

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

∙we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) 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 Trustees determine is 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 Trustees are responsible for assessing the charitable 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 Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 8

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAPANESE SCHOOL LIMITED (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 an Auditor's Report 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.

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

Based on our understanding of the company and industry, we identified that the principle risks of non-compliance with laws and regulations related to the UK Companies Act and employment regulation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to manipulation of results through manual journals or management bias in judgemental areas. Audit procedures performed by the engagement team included:
• Walkthrough testing was carried out to identify and assess the design effectiveness of controls management have in place to prevent and detect fraud, including known of suspected instances or non-compliance with laws and regulations and fraud,
• Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process,
• Using analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud,
• Assessing the appropriateness of accounting estimates and challenging any significant assumptions or judgements made by management,
• Incorporating testing of manual journal entries that were posted throughout the year. In particular, we focused on material journal entries, journal entries posted with unusual account combinations, and journal entries crediting revenue or cash. These were scrutinised for evidence of unusual entries,
• Evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

Page 9

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAPANESE SCHOOL LIMITED (CONTINUED)

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 Auditor's Report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Haslers

Chartered Accountants

Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL

15 July 2025

Haslers are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 10

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 DECEMBER 2024

	Restricted funds 2024	Unrestricted funds 2024	Total funds 2024	Total funds 2023
Note	£	£	£	£

Income from:
Donations and legacies	3	1,337,797	851	1,338,648	1,266,958
Charitable activities	4	76,042	2,676,810	2,752,852	2,557,337
Investments	5	-	64,706	64,706	58,417
Total income		1,413,839	2,742,367	4,156,206	3,882,712

Expenditure on:
Charitable activities	1,378,107	2,615,851	3,993,958	3,497,806
Total expenditure	1,378,107	2,615,851	3,993,958	3,497,806

Net income

35,732

126,516

162,248

384,906

Transfers between funds

(21,696)

21,696

Net movement in funds

14,036

148,212

162,248

384,906

Reconciliation of funds:
Total funds brought forward	5,553	14,139,834	14,145,387	13,760,481
Net movement in funds	14,036	148,212	162,248	384,906
Total funds carried forward	19,589	14,288,046	14,307,635	14,145,387

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 14 to 31 form part of these financial statements.

Page 11

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

REGISTERED NUMBER: 01263742

BALANCE SHEET

AS AT 31 DECEMBER 2024

			2024		2023
	Note		£		£

Fixed assets
Tangible assets	10		8,794,487		8,678,441
Investment property	11		3,250,000		3,250,000
			12,044,487		11,928,441
Current assets
Debtors	12	431,864		343,122
Cash at bank and in hand		2,191,867		2,328,520
		2,623,731		2,671,642
Creditors: amounts falling due within one year	13	(248,011)		(356,660)
Net current assets			2,375,720		2,314,982
Total assets less current liabilities			14,420,207		14,243,423
Provisions for liabilities	14		(112,572)		(98,036)
Total net assets			14,307,635		14,145,387

Charity funds
Restricted funds	15	19,589	5,553
Unrestricted funds	15	14,288,046	14,139,834
Total funds		14,307,635	14,145,387

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees on 15 July 2025 and signed on their behalf by:

Mr Y Nakano (Chair of Trustees)
The notes on pages 14 to 31 form part of these financial statements.

Page 12

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

				2024	2023
				£	£

Cash flows from operating activities
Net cash used in operating activities	57,548	269,139
Cash flows from investing activities
Dividends, interests and rents from investments	64,706	58,416
Purchase of tangible fixed assets	(258,907)	(163,460)
Net cash used in investing activities	(194,201)	(105,044)

Cash flows from financing activities
Net cash provided by financing activities	-	-

Change in cash and cash equivalents in the year	(136,653)	164,095
Cash and cash equivalents at the beginning of the year	2,328,520	2,164,425
Cash and cash equivalents at the end of the year	2,191,867	2,328,520

The notes on pages 14 to 31 form part of these financial statements

Page 13

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

The Japanese School Limited is a charitable company, limited by guarantee, in England and Wales. The registered charity number is 271665 and the registered company number is 01263742. The registered address is 87 Creffield Road, Acton, London, W3 9PU. The principal activity of the charity is providing education.

2.Accounting policies

2.1

Basis of preparation

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Japanese School Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are presented in Pound Sterling, the functional currency of the charity, rounded to the nearest £.

2.2

Income

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

2.3

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.

Page 14

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.4

Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of Financial Activities as the related expenditure is incurred.

2.5

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6

Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the revaluation model, tangible fixed assets whose fair value can be measured reliably (Freehold property) shall be carried at a revalued amount, being their fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting date.

Fair values are determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers. If there is no market-based evidence of fair value because of the specialised nature of the tangible fixed asset and it is rarely sold, except as part of a contributing business, a Company may need to estimate fair value using an income or depreciated replacement cost approach.

Gains and losses on revaluation are recognised in the Statement of Financial Activities, with a separate revaluation reserve being shown in the Statement of funds note.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Freehold property	-	50 years straight line
Furniture and equipment	-	5 years straight line
Leasehold Improvements	-	10 years straight line

2.7

Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Page 15

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.8

Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.9

Liabilities

Liabilities and provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.10

Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.11

Operating leases

Rentals payable under operating leases are accounted for on a straight-line basis over the periods of the lease.

2.12

Pensions

The Company operates a defined contribution pension scheme. The cost of providing these benefits is charged to the profit and loss account on a regular basis.

2.13

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 16

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.14

Provisions

3.	Income from donations and legacies

		Restricted funds 2024	Unrestricted funds 2024	Total funds 2024	Total funds 2023
		£	£	£	£


Donations	218	851	1,069	1,358
Government grants	1,337,579	-	1,337,579	1,265,600
	1,337,797	851	1,338,648	1,266,958
Total 2023	1,265,600	1,358	1,266,958

4.	Income from charitable activities

		Restricted funds 2024	Unrestricted funds 2024	Total funds 2024	Total funds 2023
		£	£	£	£


Fee income	-	2,510,920	2,510,920	2,323,735
Other income	-	19,576	19,576	32,989
Rental income	-	62,066	62,066	61,350
Bus income	76,042	-	76,042	95,750
School Trip income	-	84,248	84,248	43,513
	76,042	2,676,810	2,752,852	2,557,337
Total 2023	95,750	2,461,587	2,557,337

Page 17

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

5.	Investment income

		Unrestricted funds 2024	Total funds 2024	Total funds 2023
		£	£	£


Bank interest	64,706	64,706	58,417
Total 2023	58,417	58,417

6.	Analysis of expenditure by activities

		Activities undertaken directly 2024	Support costs 2024	Total funds 2024	Total funds 2023
		£	£	£	£


Educational operations	2,485,136	1,508,822	3,993,958	3,497,807
Total 2023	2,350,847	1,146,960	3,497,807

Analysis of direct costs


		Total funds 2024	Total funds 2023
		£	£


Staff costs	2,113,694	1,975,545
Educational supplies & stationary	152,442	123,282
Healthcare	37,471	35,207
School events	7,386	6,697
Travel	25,159	57,103
Carriage	383	12,008
School Trips	80,043	41,081
Bus fees	68,558	99,924
	2,485,136	2,350,847

Page 18

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

6.Analysis of expenditure by activities (continued)

Analysis of direct costs (continued)

Page 19

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

6.Analysis of expenditure by activities (continued)

Analysis of support costs


		Total funds 2024	Total funds 2023
		£	£


Staff costs	309,472	303,652
Depreciation	142,861	91,317
Equipment leasing and rent	90,305	91,442
Maintenance	159,303	79,379
Sundry Expenses	2,495	38,986
Professional Fees	370,108	160,783
Security	73,945	58,616
Audit Fee	21,600	19,900
Light, heat and water	128,119	95,299
Cleaning	39,174	37,041
Insurance	40,381	41,786
Rates	35,026	30,777
IT support & Telephone	94,705	96,725
Entertainment	259	265
Food	1,069	992
	1,508,822	1,146,960

7.	Auditor's remuneration
		2024	2023
		£	£

Fees payable to the Company's auditor for the audit of the Company's annual accounts	21,600	19,900
Fees payable to the Company's auditor in respect of:
Advisory Services	19,800	43,880

Page 20

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

8.	Staff costs
		2024	2023
		£	£


Wages and salaries	2,306,094	2,107,937
Social security costs	80,075	117,652
Contribution to defined contribution pension schemes	36,997	53,609
	2,423,166	2,279,198

Included in wages and salaries is secondment staff costs totalling £999,193 (2023: £966,694) which is paid by the Japanese Government directly to the individuals. These staff members are therefore excluded from the average number of employees.

The average number of persons employed by the Company during the year was as follows:
	2024	2023
	No.	No.


Leadership	1	1
Teachers	86	86
Admin staff	7	7
	94	94

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
	2024	2023
	No.	No.


	In the band £80,001 - £90,000	1	1

The total cost of the key management personnel including employers national insurance contributions amounted to £86,769 (2023: £84,303).

9.	Trustees' remuneration and expenses
	During the year, no Trustees received any remuneration or other benefits (2023 - £NIL).

During the year ended 31 December 2024, no Trustee expenses have been incurred (2023 - £NIL).

Page 21

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

10.	Tangible fixed assets

	Freehold property	Office equipment	Other fixed assets	Total
	£	£	£	£
Cost or valuation
At 1 January 2024	8,250,000	267,371	422,624	8,939,995
Additions	-	159,369	99,538	258,907
At 31 December 2024	8,250,000	426,740	522,162	9,198,902
Depreciation
At 1 January 2024	74,000	149,375	38,179	261,554
Charge for the year	37,000	60,231	45,630	142,861
At 31 December 2024	111,000	209,606	83,809	404,415
Net book value
At 31 December 2024	8,139,000	217,134	438,353	8,794,487
At 31 December 2023	8,176,000	117,996	384,445	8,678,441

The valuation of land and buildings was completed by the directors on a market value basis.
The Company has adopted a policy of revaluation for tangible fixed assets. Had these assets been measured at historic cost, the carrying values would have been as follows:
	2024	2023
	£	£

Freehold property

3,312,689

Page 22

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

11.	Investment property

		Freehold investment property
		£
	Valuation
	At 1 January 2024	3,250,000
	At 31 December 2024	3,250,000

The valuation was completed by the directors on a market value basis.

12.	Debtors
		2024	2023
		£	£


Due within one year
Other debtors	80,276	5,049
Prepayments and accrued income	92,397	103,899
Grants receivable	259,191	234,174
	431,864	343,122

13.	Creditors: Amounts falling due within one year
		2024	2023
		£	£


Trade creditors	67,413	67,859
Other taxation and social security	32,551	27,942
Other creditors	1,500	1,500
Accruals and deferred income	146,547	259,359
	248,011	356,660

Page 23

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

		2024	2023
		£	£


Deferred income at 1 January 2024	181,274	297,216
Resources deferred during the year	84,302	181,274
Amounts released from previous periods	(181,274)	(297,216)
Deferred income at 31 December	84,302	181,274

Deferred income represents school fees received in advance for future academic periods. These fees are initially recorded as a liability and recognised as income over the period to which they relate.

14.	Provisions

		Retirement benefit obligation
		£

	At 1 January 2024	98,036
	Additions	11,276
	Amounts used	3,260
		112,572

The retirement benefit obligation has arisen as a result of an obligation to pay staff when they leave employment with the Japanese School.

Page 24

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.

Statement of funds

Statement of funds - current year
	Balance at 1 January 2024 £	Income £	Expenditure £	Transfers in/out £	Balance at 31 December 2024 £
Unrestricted funds

General Funds	6,101,167	2,742,367	(2,615,851)	21,696	6,249,379
Revaluation reserve	8,038,667	-	-	-	8,038,667
	14,139,834	2,742,367	(2,615,851)	21,696	14,288,046

Restricted funds
Seconded staff	-	999,193	(999,193)	-	-
Aging Facility	-	17,614	(17,614)	-	-
Safety/Security Facilities	-	12,212	(12,212)	-	-
Security Staff Costs - Japanese School	-	33,248	(33,248)	-	-
Security Staff Costs - Saturday School	-	16,622	(16,622)	-	-
Teachers costs - Japanese School	-	46,021	(46,021)	-	-
Lecturers costs - Saturday School	-	98,629	(98,629)	-	-
Erabareru	-	50,031	(50,031)	-	-
Zaidan	-	30,441	(2,411)	(28,030)	-
Rent for Saturday School campus	-	33,568	(33,568)	-	-
Bus Fees	5,553	76,042	(68,558)	-	13,037
PTA Donations	-	218	-	6,334	6,552
	5,553	1,413,839	(1,378,107)	(21,696)	19,589

Total of funds

14,145,387

4,156,206

(3,993,958)

14,307,635

Page 25

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.

Statement of funds (continued)

Seconded staff:  A number of the key management personnel and other staff are paid directly by the Japanese Government.
Aging facility:  This fund is to contribute to the cost of repairing the old building facilities at The Japanese School.
Safety/Security facilities:  This fund is to contribute to the maintenance cost of security and safety equipment at The Japanese School.
Security Staff Costs - Japanese School:  This fund is to contribute to the security staff costs at The Japanese School.
Security staff costs - Saturday school: This fund is to contribute to the security staff costs at the Saturday school.
Teachers costs - Japanese School:  This fund is to contribute to the salary of teachers at The Japanese School.
Lecturers costs - Saturday School:  This fund is to contribute to the salary of the lecturers at the Saturday school.
Erabareru: A government grant for the English programmes, which aim to promote pupils' knowledge and understanding of British values, culture, and history to improve the pupils international minds.
Zaidan: This fund is to contribute to School supplies. A transfer has occurred during the year due to restricted funds being spent on capital items.
Rent for Saturday school campus: This fund is a contribution to fund the rent of the school premises used by the Saturday school in Brent and Croydon.
Bus fees: A bus service is provided by The Japanese School to transport students to and from school each day.
Revaluation reserve: This fund relates to the revaluation of the School building and related properties owned by the Charity.
PTA Donations: Donations from the Parent Teachers Association were collect and donated for the purpose of purchasing commemorative gifts for the school's 50th anniversary.

Page 26

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.

Statement of funds (continued)

Statement of funds - prior year
	Balance at 1 January 2021 £	Income £	Expenditure £	Balance at 31 December 2023 £
Unrestricted funds

General Funds	5,712,089	2,521,362	(2,132,284)	6,101,167
Revaluation reserve	8,038,667	-	-	8,038,667
	13,750,756	2,521,362	(2,132,284)	14,139,834

Restricted funds
Seconded staff	-	966,694	(966,694)	-
Aging Facility	-	27,608	(27,608)	-
Safety/Security Facilities	-	12,025	(12,025)	-
Security Staff Costs - Japanese School	-	36,638	(36,638)	-
Security Staff Costs - Saturday School	-	12,355	(12,355)	-
Teachers costs - Japanese School	-	66,428	(66,428)	-
Lecturers costs - Saturday School	-	79,896	(79,896)	-
Erabareru	-	33,473	(33,473)	-
Rent for Saturday School campus	-	30,482	(30,482)	-
Bus Fees	9,725	95,751	(99,923)	5,553
	9,725	1,361,350	(1,365,522)	5,553

Total of funds

13,760,481

3,882,712

(3,497,806)

14,145,387

Page 27

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

16.

Summary of funds

		Summary of funds - current year
			Balance at 1 January 2024 £	Income £	Expenditure £	Transfers in/out £	Balance at 31 December 2024 £

General funds	14,139,834	2,742,367	(2,615,851)	21,696	14,288,046
Restricted funds	5,553	1,413,839	(1,378,107)	(21,696)	19,589
	14,145,387	4,156,206	(3,993,958)	-	14,307,635

		Summary of funds - prior year
			Balance at 1 January 2023 £	Income £	Expenditure £	Balance at 31 December 2023 £

General funds	13,750,756	2,521,362	(2,132,284)	14,139,834
Restricted funds	9,725	1,361,350	(1,365,522)	5,553
	13,760,481	3,882,712	(3,497,806)	14,145,387

17.

Analysis of net assets between funds

Analysis of net assets between funds - current period
	Restricted funds 2024	Unrestricted funds 2024	Total funds 2024
	£	£	£

Tangible fixed assets	-	8,794,487	8,794,487
Investment property	-	3,250,000	3,250,000
Current assets	19,589	2,604,142	2,623,731
Creditors due within one year	-	(248,011)	(248,011)
Provisions for liabilities and charges	-	(112,572)	(112,572)
Total	19,589	14,288,046	14,307,635

Page 28

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

17.Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior period
	Restricted funds 2023	Unrestricted funds 2023	Total funds 2023
	£	£	£

Tangible fixed assets	-	8,678,441	8,678,441
Investment property	-	3,250,000	3,250,000
Current assets	5,553	2,666,089	2,671,642
Creditors due within one year	-	(356,660)	(356,660)
Provisions for liabilities and charges	-	(98,036)	(98,036)
Total	5,553	14,139,834	14,145,387

18.	Reconciliation of net movement in funds to net cash flow from operating activities
		2024	2023
		£	£

Net income for the period (as per Statement of Financial Activities)	162,248	384,906
Adjustments for:
Depreciation charges	142,861	91,316
Dividends, interests and rents from investments	(64,706)	(58,416)
Increase in debtors	(97,018)	(78,220)
Decrease in creditors	(124,361)	(88,987)
Movement in provisions	14,538	18,541
Net cash provided by operating activities	33,562	269,140

19.	Analysis of cash and cash equivalents
		2024	2023
		£	£

	Cash in hand	2,191,867	2,328,520
	Total cash and cash equivalents	2,191,867	2,328,520

Page 29

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

20.	Analysis of changes in net debt

		At 1 January 2024	Cash flows	At 31 December 2024
		£	£	£

	Cash at bank and in hand	2,328,520	(136,653)	2,191,867
		2,328,520	(136,653)	2,191,867

21.	Pension commitments

The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independent administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £36,997 (2023: £32,741). Contributions totalling £Nil (2023: £Nil) were payable to the fund at the balance sheet date and are included in creditors.

22.	Operating lease commitments
	At 31 December 2024 the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
		2024	2023
		£	£

Operating leases which expire:
Within 1 year	11,719	7,292
Within 2-5 years	15,603	15,603
	27,322	22,895

23.	Members' liability

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £NIL for the debts and liabilities contracted before he/she ceases to be a member.

Page 30

THE JAPANESE SCHOOL LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

24.

Related party transactions

During the year, Nippon Club Limited, a company which a trustee is a director of, provided hire of facilities for £611 (2023: £1,144). Additionally, Canon Europe Ltd, a company which a trustee is a director of, provided equipment rental for £4,887 (2023: £5,684). Tokio Marine & Nichido Fire Insurance Co. ltd, a company of which a trustee is a director, provided insurance services for £38,266 (2023: £43,615).

During the year, The Japanese School received rental income from trustees £20,187 (2023: £21,600).

During the year, The Japanese School received school fees from trustees totalling £2,544 (2023: £2,515).
At the year end there was a balance outstanding with a trustee of £5,070 (2023: £Nil) for expenses paid on behalf of the trustee, to be reclaimed within 12 months.

Page 31