The financial statements are prepared under the historical cost convention and in accordance with the FRS 102 Financial Reporting Standard for Smaller Entities (effective January 2016).

Turnover represents rental income receivable from investment properties and is recognised on an accruals basis over the period to which it relates.

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items in other comprehensive income or directly in equity.

 

 

Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. These differences are the ones that have originated but not reversed at the Balance Sheet date, where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred. The deferred tax balance has not been discounted.

Investment property is property held to earn rentals and/or for capital appreciation.

Investment property is initially recognised at cost and subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss in the period in which they arise.

Fair value is determined by the directors with reference to market evidence and, where appropriate, independent professional valuations.

Finance costs are charged to the Profit and Loss account over the term of the debt using the effective interest method, so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.