The financial statements of Engineering Systems (EEC) Limited for the year ended 31 March 2025 are the first prepared in accordance with FRS 105, “The Financial Reporting Standard applicable to the Micro‑entities Regime”. The directors have concluded that the company qualifies as a micro‑entity for the reporting period, having met at least two of the following size criteria: turnover not exceeding £632,000, balance sheet total not exceeding £316,000, and an average of fewer than 10 employees, and it is not an excluded entity. Adoption of FRS 105 is optional for eligible entities; the company has elected to adopt FRS 105 rather than continue with FRS 102 Section 1A.
The transition to FRS 105 has been accounted for in accordance with Section 28 of FRS 105 and the transition date is 1 April 2023. The comparitive information for the year ended 31 March 2024 has been restated to reflect the recognition, measurement and presentation requirements of FRS105. Specifically, the fair value increases (£165,434 as at the transition date) have been removed with a corresponding debit to retained earnings. The investment property is now stated at historical cost. In addition, the associated deferred tax provision (£20,865 at the transition date) has been removed with the corresponding credit to retained earnings.