Gordon House Investments Limited Accounts

1

Accounting policies

Basis of preparation

The accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets and in accordance with the accounting policies set out below.

Going Concern

The financial statements have been prepared on the going concern basis.

Turnover

Intangible fixed assets

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the profit and loss account because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible timing differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

Freehold investment property

Investments

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

Trade and other debtors

Trade and other creditors

Financial instruments

Basic financial assets, including trade and other receivables and cash and bank balances, are recognised and carried forward at transaction price. Financial assets are derecognised when:

(a) The contractual rights to the cash flows from the asset expire or are settled;

(b) Substantially all the risks and rewards of the ownership of the asset are transferred to another party; or

(c) Control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Basic financial liabilities, including trade and other payables, and loans from third parties are initially recognised and carried forward at transaction price.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

The company has only financial assets and financial liabilities of a kind that qualify as a basic financial instruments. Basic financial instruments are recognised initially at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest rate method.

Foreign currencies

Leased assets

Where the company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to the Company are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs (see the accounting policy above).

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term.

Pensions

Provisions

2

Employees

2019

2018

Number

Number

The average number of persons employed during the year :

3

Investment property

Freehold Investment Property

£

Valuation

At 1 April 2018

Additions

Revaluation

(271,551)

At 31 March 2019

4

Freehold Investment Property

The freehold investment properties were acquired on various dates. The properties were revalued on 31 March 2019 by the directors.

5

Debtors

2019

2018

£

£

Trade debtors

Loans to directors

Other debtors

Prepayments and accrued income

6

Creditors:

amounts falling due within one year

2019

2018

£

£

Bank loans and overdrafts

Trade creditors

Corporation tax

Other taxes and social security

(5,564)

Loans from directors

Other creditors

Accruals and deferred income

7

Creditors:

amounts falling due after more than one year

2019

2018

£

£

Bank loans and overdrafts

Liabilities repayable in more than five years after the balance sheet date

Amount repayable by instalments

998,339

1,074,351

8

Creditors: secured liabilities

2019

2018

£

£

The aggregate amount of secured liabilities included within creditors

9

Provisions for liabilities

Deferred taxation

Arising from revaluation

Total

£

£

At 1 April 2018

Credit to other comprehensive income for the period

(50,736)

(50,736)

At 31 March 2019

82,200

2019

2018

£

£

Revaluation of land and buildings

10

Reserves

Revaluation Reserve

Total other reserves

£

£

At 1 April 2017

At 31 March 2018 and 1 April 2018

Movement on revaluation reserve

(271,551)

(271,551)

At 31 March 2019

Profit & loss account

2019

2018

£

£

Balance at 1 April 2017

39,668

50,555

Profit for the year as previously stated

(116,924)

19,113

Prior year adjustment

-

(30,000)

Profit for the year as restated

(77,256)

39,668

Transfer from fair value reserve

271,551

-

Balance at 31 March 2018 as restated

194,295

39,668

The prior year adjustment was required in order to correct the financial statements for the year ended 31 March 2018 by recognising a loss of £30,000 arising on the disposal of an unquoted investment owned by the company.