Erc Accountants & Business Advisers Limited

	Page
Statement of Financial Position	1—2
Notes to the Financial Statements	3—7

1. General Information

Erc Accountants & Business Advisers Limited is a private company, limited by shares, incorporated in England & Wales, registered number 06815821 . The registered office is Hanover Buildings, 11-13 Hanover Street, Liverpool, Merseyside, L1 3DN.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

2.2. Turnover

Turnover is the total amount estimated to be receivable for services rendered and disbursements charged to clients during the period, excluding Value Added Tax.

Turnover is recognised when a right to consideration has been obtained through performance under each contract and reflects the contract activity during the year having regard to the stage of completion of each contract and the relative uncertainty of predicting ultimate profitability on long term assignments.

2.3. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. The directors have chosen not to amortise the goodwill.

2.4. Tangible Fixed Assets and Depreciation

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold	Over the term of the lease
Motor vehicles	25% reducing balance
Fixtures and fittings	15% - 33% reducing balance

2.5. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the income statement so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the income statement as incurred.

2.6. Stocks and Work in Progress

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. An element of profit is included in the valuation of work in progress, in line with UITF 40.

2.7. Financial Instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

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Erc Accountants & Business Advisers Limited

Notes to the Financial Statements (continued)

For the Period 1 January 2024 to 31 March 2024

2.8. Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

2.9. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the income statement as they become payable in accordance with the rules of the scheme.

2.10. Government Grant

Government grants are recognised in the income statement in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.

Grants for immediate financial support or to cover costs already incurred are recognised immediately in the income statement. Grants towards general activities of the entity over a specific period are recognised in the income statement over that period.

Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the income statement over the useful life of the asset concerned.

All grants in the income statement are recognised when all conditions for receipt have been complied with.

2.11. Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

3. Average Number of Employees

Average number of employees, including directors, during the period was: 21 (2023: 23)

4. Intangible Assets

	Goodwill
	£
Cost
As at 1 January 2024	1,588,551

As at 31 March 2024	1,588,551

Net Book Value
As at 31 March 2024	1,588,551

As at 1 January 2024	1,588,551

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Erc Accountants & Business Advisers Limited

Notes to the Financial Statements (continued)

For the Period 1 January 2024 to 31 March 2024

5. Tangible Assets

	Land & Property
	Leasehold	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£
Cost
As at 1 January 2024	818,739	260,710	78,685	1,158,134

As at 31 March 2024	818,739	260,710	78,685	1,158,134

Depreciation
As at 1 January 2024	69,801	-	57,527	127,328
Provided during the period	1,986	16,294	1,236	19,516

As at 31 March 2024	71,787	16,294	58,763	146,844

Net Book Value
As at 31 March 2024	746,952	244,416	19,922	1,011,290

As at 1 January 2024	748,938	260,710	21,158	1,030,806

Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:

	31 March 2024	31 December 2023
	£	£
Motor vehicles	244,416	260,710

6. Stocks

	31 March 2024	31 December 2023
	£	£
Work in progress	103,443	83,301

7. Debtors

	31 March 2024	31 December 2023
	£	£
Due within one year
Trade debtors	344,943	286,448
Prepayments and accrued income	39,659	35,604
Sundry debtors	174	174
Other debtor	12,427	12,427

	397,203	334,653

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Erc Accountants & Business Advisers Limited

Notes to the Financial Statements (continued)

For the Period 1 January 2024 to 31 March 2024

8. Creditors: Amounts Falling Due Within One Year

	31 March 2024	31 December 2023
	£	£
Net obligations under finance lease and hire purchase contracts	41,722	51,987
Trade creditors	50,260	27,943
Corporation tax	90,553	68,983
Other taxes and social security	14,903	14,299
VAT	79,995	61,534
Other creditors	133,264	179,612
Accruals and deferred income	75,068	39,783
Directors' loan accounts	234,518	260,684

	720,283	704,825

9. Creditors: Amounts Falling Due After More Than One Year

	31 March 2024	31 December 2023
	£	£
Net obligations under finance lease and hire purchase contracts	191,942	208,723

10. Secured Creditors

Of the creditors the following amounts are secured.

	31 March 2024		31 December 2023
	£		£
Net obligations under finance lease and hire purchase contracts	233,664		260,710

11. Obligations Under Finance Leases and Hire Purchase

	31 March 2024	31 December 2023
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	41,722	51,987
Later than one year and not later than five years	191,942	208,723

	233,664	260,710

	233,664	260,710

12. Share Capital

	31 March 2024	31 December 2023
	£	£
Allotted, Called up and fully paid	100	100

13. Directors Advances, Credits and Guarantees

No director received advances, credits or guarantees during the current or previous accounting periods.

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Erc Accountants & Business Advisers Limited

Notes to the Financial Statements (continued)

For the Period 1 January 2024 to 31 March 2024

14. Dividends

	31 March 2024	31 December 2023
	£	£
On equity shares:
Final dividend paid	-	83,196

15. Related Party Transactions

The following related party transactions were undertaken during the year:

The directors were owed £234,518 (2023: £260,084) as at the reporting date.

A partnership under common control owed the company £12,427 (2023: £12,427) as at the reporting date.

No further transactions with related parties were undertaken such as are required to be disclosed in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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		31 March 2024		31 December 2023
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		1,588,551		1,588,551
Tangible Assets	5		1,011,290		1,030,806

			2,599,841		2,619,357
CURRENT ASSETS
Stocks	6	103,443		83,301
Debtors	7	397,203		334,653
Cash at bank and in hand		180,005		169,780

		680,651		587,734
Creditors: Amounts Falling Due Within One Year	8	(720,283 )		(704,825 )

NET CURRENT ASSETS (LIABILITIES)			(39,632 )		(117,091 )

TOTAL ASSETS LESS CURRENT LIABILITIES			2,560,209		2,502,266

Creditors: Amounts Falling Due After More Than One Year	9		(191,942 )		(208,723 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(61,633 )		-

NET ASSETS			2,306,634		2,293,543

CAPITAL AND RESERVES
Called up share capital	12		100		100
Income Statement			2,306,534		2,293,443

SHAREHOLDERS' FUNDS			2,306,634		2,293,543