Certain sundry equipment and tools, which were taken over from the members at no cost, have been revalued by the Directors at their current estimated value, and included at that value in the accounts.
The principle fixed asset of the company is a light twin piston engined aircraft. In order to ensure that the aircraft retains its airworthy status, all mechanical and electronic components, including propellers, engines, and radios are overhauled or renewed at regular intervals. The airframe and interior is also regularly repainted and, where necessary, repaired to ‘as new’ standards. The costs of the above maintenance and repairs are included, when incurred, in the Income and Expenditure account. Additions to aircraft equipment and enhancements to existing aircraft equipment are included in additions.
The current market value of the aircraft, in the opinion of the Directors, greatly exceeds the book written down value as shown in the accounts. In the context of the above, the Directors consider that a depreciation rate of 2.5% per annum on a straight line basis on fixed assets is appropriate to the circumstances of the Company.