The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
2.2. Change in accounting policy
The company act as trustee of a statutory trust in respect of service charge monies collected for the maintenance of the common parts in accordance with the lease. The company has changed its accounting policy to exclude these funds from the company's accounts as separate service charge accounts are prepared and certified.
2.3. Service Charges
The company is responsible for the management of the common parts in accordance with the lease and collects service charges from the lessees in order to fund expenditure incurred in the management of the property. These service charge funds are held in trust for the lessees as required by the Landlord & Tenant Act 1987.
2.4. Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs ans subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
2.5. Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.