2Accounting Policies

Basis of measurement and preparation of accounts
The accounts have been prepared under the historical cost convention and in accordance with FRS 105, The Financial Reporting Standard applicable to the Micro-entities Regime. Amounts are presented in pounds sterling. Comparative figures have been restated to correct prior-period errors.

The accounts use the going-concern basis. The director intends to continue the business, fund necessary operating expenses through further director loans, and obtain mortgage finance for completion of the property purchase. Mortgage finance has not been confirmed. The director currently expects completion in 2028; solicitor correspondence dated 10 August 2025 reports a contractual long-stop date of 31 December 2026. The director intends to assess the market on completion and either let or sell the apartment. Construction timing, the continuing acquisition rights and recoverability of payments, and completion finance remain uncertain. These circumstances represent a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern. The accounts do not include adjustments that would result if the company could not continue as a going concern.

Other accounting policies
Property acquisition payments
The company holds contractual rights to acquire Apartment 814, Block 2, Central Point, Liverpool. The apartment remained under construction at the year end. Payments of GBP 53,890.80 (2025: GBP 53,890.80) are carried as acquisition deposits and prepayments at cost, based on the director's explanation of their purpose and assessment of recoverability. No impairment has been recognised on that assessment. No completed apartment, anticipated rent or compensation receivable has been recognised.

Director's loan
The company owed the director GBP 54,200 at both year ends. This comprises GBP 53,200 transferred into Tide and GBP 1,000 paid personally for the company and subsequently refunded into Tide. There is no fixed repayment date; the director intends repayment from future profits. No enforceable deferral beyond twelve months has been evidenced, so the loan is presented within current creditors.

Correction of prior-period errors
The previously filed 2025 balance sheet and its 2024 comparative reported nil balances. The 2025 comparative is restated to recognise acquisition payments of GBP 53,890.80, cash of GBP 72.19 and director funding of GBP 54,200, resulting in net liabilities of GBP 237.01. Equity comprises GBP 1 paid ordinary share capital and accumulated losses of GBP 238.01, including a GBP 1 immaterial historical reconciliation adjustment whose original documentation is unavailable. The remaining GBP 237.01 comprises identified historical expenses. The 2024 filing's reported loss of GBP 54,120 was inconsistent with its balance sheet and is not carried forward as a reliable ledger balance. Corrections affect comparative figures and opening reserves, not current-year income. The current-year loss is GBP 34 and closing net liabilities are GBP 271.01. Filing these accounts does not amend the earlier filings. Figures on the face of the balance sheet are rounded to whole pounds.

Financial commitments
The contractual purchase price is GBP 175,000. The agreement specifies a GBP 5,000 reservation fee, GBP 38,750 exchange deposit and GBP 8,750 second deposit. The remaining price commitment is provisionally GBP 122,500 before contractual charges, adjustments and confirmation of payment credits. The director attributes the additional GBP 1,390.80 paid to reservation/acquisition costs; it has not been assumed to reduce the remaining purchase-price commitment. The intended mortgage funding is not confirmed.

Subsequent information
The director reports no other significant changes since the year end apart from the continuing delays and the current expectation of completion in 2028. This expectation is not a confirmed contractual extension beyond 31 December 2026.