3 Accounting policies
Basis of preparation
The financial statements
have been prepared in respect of the Company as an individual entity and on the historical cost basis, as modified by the revaluation of certain assets.
The financial statements
are prepared in sterling, which is the functional currency of the company. Turnover
Turnover represents rental income receivable in respect of the year.
Current tax
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Investment properties
Investment property is measured initially at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued periodically to its fair value and any changes in fair value are recognised in profit or loss.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting date. Deferred tax is measured on an undiscounted basis at the tax rates that would apply in the periods in which timing differences are expected to reverse, based on tax rates and laws enacted at the statement of financial position date.
Profit and Loss Account and Reserves
In accordance with the requirements of FRS 102, surpluses and deficits on periodic revaluations of the investment property are accounted for in the profit and loss account. However, in the opinion of the directors, such unrealised accumulated profits should be transferred to a Revaluation Reserve so as to distinguish between distributable and non-distributable reserves.