| Morston Investments Limited |
| Notes to the Accounts |
| for the year ended 31 December 2024 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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| 2 |
Employees |
2024 |
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2023 |
| Number |
Number |
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Average number of persons employed by the company |
0 |
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1 |
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| 3 |
Debtors |
2024 |
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2023 |
| £ |
£ |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
100 |
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100 |
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| 4 |
Events after the reporting date |
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The financial statements of the company to 31 December 2022 now show the properties held by the company as fixed assets rather than trading stock. During the course of the year, the directors were advised that in previous years the properties had been erroneously held as trading stock rather than as fixed assets. The directors have sought to correct this position.
The directors have confirmed that the properties have been held as investment assets for at least thirty years and the company has been run on this basis throughout this period.
It should be noted that the company has not sold a property or marketed a property for sale, other than the purchase of a freehold of aproperty with a long leasehold interest, in the last thirty years and has not acquired a property since circa 1990, although there have been property improvements added to the existing stock cost. Furthermore, the directors confirm that the company strategy has always been to hold the properties with a view to receiving rental income and long-term capital growth.
These financial statements have been prepared on the basis that the properties owned by the company are investment assets rather than as stock in trade and this has been the case for at least the last thirty years. Furthermore, the financial statements of the company have been amended to appropriate the properties from stock in trade to fixed assets.
It was also noted that a payment made had been incorrectly shown as a fixed asset when it was a loan and this has also been corrected. |
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| 5 |
Other information |
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Morston Investments Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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43 Mornington Road |
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Chingford |
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London |
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E4 7DT |