2Accounting Policies

Basis of measurement and preparation of accounts
1. Basis of Preparation
These financial statements have been prepared in accordance with:
• The provisions applicable to micro entities under FRS 105, and
• The requirements of the Companies Act 2006 relating to micro entity accounts.
The accounts present only those transactions, assets and liabilities that relate to the company itself, and do not include any service charge or trust monies held or administered by the Managing Agent on behalf of the freeholders.

2. Principal Activity
The company’s principal activity during the year continued to be the management of the communal areas of the estate and acting as the corporate vehicle through which the freeholders collectively manage the estate. The company does not trade for profit.

3. Service Charge Monies Held on Trust
In accordance with section 42 of the Landlord and Tenant Act 1987, all service charge monies, reserve funds, interest earned on those monies, and any voluntary contributions collected by the Managing Agent are held on statutory trust for the benefit of the freeholders.
These funds:
• are not the property of the company,
• are not included in these financial statements, and
• are administered by the Managing Agent in a designated trust account.
The company does not have control over, or beneficial entitlement to, these monies.

4. Accounting Records and Information Provided
During the period December 2025 to May 2026, the Board of Directors made repeated formal requests to the Managing Agent for access to the company’s books and records for the year ended 30 June 2025.
The Managing Agent did not provide the requested records.
Accordingly:
• The Board has prepared these micro entity accounts based solely on the limited information available to it, and
• The Board has no evidence of any transactions undertaken in the company’s name during the year, other than Companies House filing fees (if any).
The Board has recorded this limitation in its minutes.

5. Company Bank Accounts
The Board has not been provided with evidence of any bank account operated in the company’s name during the year.
The Board has no information indicating that the company received or paid any monies during the year.

6. Legal and Professional Fees
The Board is aware that legal proceedings were commenced against the company during the year. The Managing Agent collected voluntary contributions from six freeholders into the service charge trust account to fund legal costs.
The Board has not been provided with any evidence that:
• legal fees were incurred in the company’s name, or
• any such fees were paid from a company bank account.
Accordingly, no legal or professional fees have been recognised in these financial statements.

7. Directors’ Assessment of Going Concern
The company has no trading activities, no employees, and no liabilities known to the Board. The company’s ongoing obligations relate solely to statutory filings and the management of the communal areas.
On this basis, the directors consider the company to be a going concern.

8. Events After the Reporting Date
After the year end, the Board continued to request access to the company’s accounting records from the Managing Agent. As at the date of approval of these accounts, the records had not been provided.
This matter is ongoing.