Statement of compliance

These financial statements have been prepared in compliance with FRS 102(1A) The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.

Basis of preparation

The financial statements have been prepared under the historical cost convention, modified to include investment property measured at fair value through profit or loss.

The financial statements are prepared in sterling which is the functional currency of the company.

Turnover represents rental income from residential lettings, recognised in the period to which it relates.

Taxation represents the sum of tax currently payable and deferred tax. Tax is recognised in the statement of income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves.
The company’s liability for current tax is calculated using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Current and deferred tax assets and liabilities are not discounted

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting date.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Current and deferred tax assets and liabilities are not discounted.
Deferred tax relating to investment property measured at fair value is measured using the tax rates and allowances that apply to the sale of the property.

Investment properties are properties held to earn rentals and/or for capital appreciation.
Investment properties are recognised initially at cost and subsequently investment properties are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in profit or loss in the period in which they arise.

The fair value of the investment property at 31 October 2025 was determined by the directors on an open market value basis by reference to recent sales of comparable properties. If the investment property were stated on the historical cost basis, the carrying amount would be £401,114 (2024: £275,000).