2Accounting Policies

Basis of measurement and preparation of accounts
These financial statements have been prepared in accordance with the micro-entity provisions of the Companies Act 2006 and with FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime.

Turnover policy
Turnover is rental income, recognised in the period to which it relates. Rent received in advance is deferred.

Tangible assets depreciation policy
Leasehold property is stated at cost less accumulated depreciation and impairment. Depreciation is charged on a straight-line basis over the unexpired term of the lease, which expires on 7 November 2133, from the date of completion on 4 September 2024, with no residual value.

Other accounting policies
Mortgage arrangement costs are deducted from the carrying amount of the loan and charged to profit or loss on a straight-line basis over the term of the loan. Tax is the amount payable on the taxable profit for the period. No deferred tax is recognised.

Prior period adjustment: The 2024 comparative figures have been restated to correct errors in the 2024 financial statements. The mortgage-funded part of the property purchase (£154,988) and the related loan were omitted; unpaid issued share capital of £2 was not recognised; the director's loan was shown as due after more than one year although there was no agreed restriction on repayment; mortgage arrangement costs were expensed instead of being spread over the loan term; accruals, prepayments, deferred rent and money held by the letting agent were not recorded; depreciation was not charged; the average number of employees was stated as 2 but the directors are not employed under contracts of service; and corporation tax was under-provided by £278.67. Net assets at 31 December 2024 were £920.76 as previously reported and £1,170.38 as restated.