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)

The company's ongoing activities are dependent upon the continued support of the directors who have undertaken to provide such support for the foreseeable future. The directors have invested their own funds in the company to develop the investment property which has created a regular income stream for the company. 
Based on the above, the directors are confident that the company has the resources to continue in operational existence for the foreseeable future and so they continue to adopt the going concern basis of accounting when preparing the financial statements.

The current taxation is based on the taxable profit or loss for the period. The taxable profit or loss may differ from that which is reported in the financial statements because adjustments are made for items that are treated differently for tax purposes compared to their treatment for accounting purposes. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for tax purposes compared to their treatment for accounting purposes. Deferred tax also includes the impact of any tax implications from movements in the fair value changes of investment properties. The deferred tax balance has not been discounted.

Dividends that are deemed to have been voted and paid during the period are included in these financial statements. Proposed dividends are only included as liabilities in the financial statements when their payment has been approved by the shareholders prior to the balance sheet date.

Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the basis given below. Land and buildings is made up of investment property.

Investment properties for which fair value can be reliably measured without undue cost or effort are measured at the fair value at each reporting date with changes in the fair value being recognised in profit and loss account. The accumulated fair value gain is taken to the fair value reserve together with any deferred tax implications and will only be transferred to retained earnings on the sale of an investment property. The methods and significant assumptions used to ascertain the fair value at the reporting date and the subsequent fair value movements are described below:

• Properties are valued using an open market valuation on a freehold basis, conducted annually by the director. 

Provisions are recognised when the company has a present obligation as a result of a past event which it is more probable than not will result in an outflow of economic benefits that can be reasonably estimated.

The company has elected to apply the provisions of Section 11 Basic Financial Instruments and Section 12 Other Financial Instruments Issues of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial instruments included within these financial statements are valued at the transaction price applicable at the time of the transaction.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.