The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been applied consistently to all periods presented, unless otherwise stated. a. Basis of preparation of financial statements The financial statements have been prepared under the historic cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' (FRS 102) and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3. The Company's functional and presentational currency is the Pound Sterling. b. Going concern The financial statements have been prepared on a going concern basis. The Company incurred a loss of £285,620 during the year and had net liabilities of £1,248.020 at the balance sheet date. The Company is funded by intercompany loans from SNSE Limited, which are repayable on demand. The Directors have received confirmation from SNSE Limited that it will not demand repayment of these loans within at least 12 months from the date of approval of these financial statements and will continue to provide financial support as required. Based on this support, the Directors have a reasonable expectation that the Company will continue in operational existence for the foreseeable future. c. Revenue Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue comprises rental income, property disposals and other estate-related income. Revenue from property disposals is recognised at the point of legal completion, being when control transfers to the purchaser. d. Borrowing costs All borrowing costs are recognised in profit or loss in the period in which they are incurred. Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset, which is an asset which necessarily takes a substantial period of time to get ready for its intended use or sale, are capitalised as part of the cost of that asset. All other borrowing costs are recognised in profit or loss in the period in which they are incurred. e. Tangible fixed assets Tangible fixed assets are initially recognised at cost. Cost includes the purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Subsequently, tangible fixed assets are measured using the cost model. Under the cost model, tangible assets are measured at cost less any accumulated depreciation and any accumulated impairment losses. All tangible fixed assets are considered to have a finite useful life. Depreciation is calculated to allocate the depreciable amount of tangible fixed assets to their residual values over their estimated useful lives on the following bases: Assets under construction are classified as work in progress and are not depreciated until the asset is complete and available for use. Upon completion, assets are transferred to the appropriate fixed asset category and depreciation is commenced over their estimated useful economic lives. If factors such as a change in how an asset is used, technological advancement, or changes in market prices indicate that the residual value or useful life of an asset has changed since the most recent balance sheet date, the Company reviews its previous estimates and, if current expectations differ, amends the residual value, amortisation method or useful life, accounting for this as a change in an accounting estimate. e. Tangible fixed assets continued In the Company’s individual financial statements, investment properties rented to other group companies are classified as tangible fixed assets and held at historical cost less depreciation and impairment. f. Impairment of fixed assets Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased. g. Stocks The Company acquires land and property with the intention of development and resale. Accordingly, all such assets are classified as trading stock. Trading stock is stated at the lower of cost and net realisable value. Cost includes acquisition costs, professional fees, planning costs, and directly attributable development expenditure. Where large sites are acquired and partially disposed of, costs are apportioned between disposed and retained elements on a reasonable and consistent basis, having regard to acreage, value, and development potential. Where disposals occur, the carrying value of the relevant portion of stock is recognised in cost of sales. The Directors consider this treatment appropriate as all properties are held for resale in the ordinary course of business. g. Stocks continued At each balance sheet date, stocks are assessed for impairment. If an item of stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. h. Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits with financial institutions repayable without penalty on notice of not more than 24 hours, other highly liquid investments that mature in no more than three months from the date of acquisition and bank overdrafts. Bank overdrafts, where applicable, are shown within 'Creditors: amounts due within one year'.