THORNE_INVESTMENTS_LTD - Accounts
THORNE_INVESTMENTS_LTD - Accounts
Thorne Investments Ltd is a private company limited by shares incorporated in Scotland. The registered office is Shambala, 14a Cloch Road, Gourock, Renfrewshire, PA19 1AB.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is determined by comparing costs incurred as a proportion of total costs. Income received in advance of costs being incurred is deferred until the corresponding costs have been defrayed.
Interest receivable on commercial loans provided in the normal course of business is only recognised when it is deemed recoverable.
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
The company was a designated member of Gantock Developments LLP and its interests in that entity were included in the balance sheet as 'Other investments'. Gantock Developments LLP ceased trading in August 2018 and has now been dissolved.
The company is the parent company of Kirn Drive Limited and DBS Investments Limited. Loans have been made to each of those companies, and the balances outstanding at the year end were £1,871,800 and £1,428,910 respectively (2017 - £3,491,800 and £1,288,910). No interest is charged on these loans, which are repayable on demand.
'Other creditors' includes the amount of £9,293,064 (2017 - £9,162,359) due by the company to one of its directors in respect of working capital advances. This loan does not bear interest and is repayable on demand.