| FORESTROX LIMITED |
| Notes to the Accounts |
| for the year ended 31 March 2019 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Plant and machinery |
25% reducing balance |
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Investment property |
Director revaluation (was depreciated under FRS 105 last year) |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
| 1 |
Accounting policies (cont.) |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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| 2 |
Change in accounting reporting |
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In this year, the directors decided to report under FRS102 (1A), which resulted in a revaluation method for the investments property as opposed to a depreciation method under FRS 105 last year. The prior year accounts have been restated under the same method resulting in a £573,060 prior year adjustment. |
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| 3 |
Employees |
2019 |
|
2018 |
| Number |
Number |
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Average number of persons employed by the company |
2 |
|
2 |
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| 4 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery etc |
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Total |
| £ |
£ |
£ |
|
Cost |
|
At 1 April 2018 |
1,650,000 |
|
64,498 |
|
1,714,498 |
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At 31 March 2019 |
1,650,000 |
|
64,498 |
|
1,714,498 |
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Depreciation |
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At 1 April 2018 |
- |
|
28,959 |
|
28,959 |
|
Charge for the year |
- |
|
8,885 |
|
8,885 |
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At 31 March 2019 |
- |
|
37,844 |
|
37,844 |
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Net book value |
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At 31 March 2019 |
1,650,000 |
|
26,654 |
|
1,676,654 |
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At 31 March 2018 |
1,650,000 |
|
35,539 |
|
1,685,539 |
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The freehold properties were last revalued in 2015 by Brian Reeves and Co, RICS, at £1,650,000.
During the year, the directors changed reporting from FRS105 to FRS102 (1A) which revalued the investment properties instead of depreciated then and resulting in a prior year adjustment of £573,060. |
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| 5 |
Debtors |
2019 |
|
2018 |
| £ |
£ |
|
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Trade debtors |
- |
|
45,000 |
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Other debtors |
6,158 |
|
8,240 |
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|
6,158 |
|
53,240 |
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| 6 |
Creditors: amounts falling due within one year |
2019 |
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2018 |
| £ |
£ |
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Bank loans and overdrafts |
77,280 |
|
77,280 |
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Trade creditors |
2,220 |
|
2,220 |
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Taxation and social security costs |
2,167 |
|
15,021 |
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Other creditors |
20,000 |
|
20,000 |
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|
101,667 |
|
114,521 |
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| 7 |
Creditors: amounts falling due after one year |
2019 |
|
2018 |
| £ |
£ |
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Bank loans |
484,497 |
|
540,475 |
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Other creditors |
636,767 |
|
621,702 |
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1,121,264 |
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1,162,177 |
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| 8 |
Loans |
2019 |
|
2018 |
| £ |
£ |
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Creditors include: |
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Instalments falling due for payment after more than five years |
264,040 |
|
314,979 |
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Secured bank loans |
560,289 |
|
617,755 |
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These bank loans are secured over the freehold property. |
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| 9 |
Revaluation reserve |
2019 |
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2018 |
| £ |
£ |
|
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At 1 April 2018 |
430,000 |
|
- |
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Gain on revaluation of land and buildings |
- |
|
430,000 |
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At 31 March 2019 |
430,000 |
|
430,000 |
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| 10 |
Related party transactions |
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At the year end, the company owed Mr W Burdett-Coutts £108,791 (2018: £108,791) and Mr L Johnson £108,791 (2018: £108,791), both director shareholders.
During the year, the company received £60,700 (2018: £70,660) in arm's length rent from Assembly Festival Limited, a company with mutual directors, and at the year end the company owed it £419,185 (2018: £404,120). The company also paid £15,066 (2018: £nil) interest on this loan which was backdated to December 2017. |
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| 11 |
Controlling party |
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The ulitmate controlling party throughout the year were the shareholders equally. |
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| 12 |
Other information |
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FORESTROX LIMITED is a private company limited by shares and incorporated in England. Its registered office is: |
|
2 Roxburgh Place |
|
Edinburgh |
|
Scotland |
|
EH8 9SU |
