Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at the market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.

Shown on the face of the balance sheet is monies held in a company bank account and as cash in hand, under the following conditions:

a) the fact that a statutory trust is imposed over service charge monies received under Section 42 of the Landlord and Tenant Act 1987 and that the residential management company acts as a trustee in this capacity; and

b) the closing balance of cash and other assets held in trust by the residential management company.

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

The company has taken advantage of Companies Act 2006 section 444(1) and opted not to file the profit and loss account, directors report, and notes to the financial statements relating to the profit and loss account.