Significant accounting policies
These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Turnover
Turnover represents rental income receivable from investment properties during the financial year, together with any associated service charge income where applicable.
Amounts received in advance are recognised as deferred income and released to the profit and loss account over the period to which they relate. Amounts due but not yet received at the reporting date are recognised as accrued income where collection is considered probable.
Investment properties
Investment properties are properties held to earn rental income and/or for capital appreciation.
Investment properties are initially recognised at cost, including the purchase price and any directly attributable expenditure, such as legal fees and property transfer taxes.
Subsequently, investment properties are measured at fair value at each reporting date. Changes in fair value are recognised in the profit and loss account in the period in which they arise.
Investment properties are not depreciated where they are measured at fair value.
The fair value of investment properties is determined by reference to market evidence and other relevant valuation information available at the reporting date.