J.S._FINANCIAL_SERVICES_L - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial period ended 31 August 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

J.S. Financial Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is .

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. The principal accounting policies adopted are set out below.

Due to administrative changes within the company, the director has elected to change the accounting period end to 31 August 2019. As such, the current period has been extended to 18 months. The financial performance as stated in the account will therefore not be immediately comparable to that of the prior year.

The turnover shown in the profit and loss account represents the sales of development properties, income from joint ventures and consulting fees, exclusive of Value Added Tax. Profits on the sale of properties are taken upon completion of the contract.

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

Investments are stated at cost less provision for diminution in value.

Stocks comprise development properties and are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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 payments 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.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The 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 net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes 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 reporting end date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions:

Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold.

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Joint ventures

The property trading joint ventures undertaken by the company involve the joint control by the venturers of one or more property assets contributed to, or acquired for the purpose of, the joint venture and dedicated to the purposes of the joint venture.

In respect of its interest in a jointly controlled property asset operations, the company recognizes in its financial statements:

• its share of the jointly controlled property assets, classified as trading stock;

• any liabilities that it has incurred;

• its share of any liabilities incurred jointly with the other venturer in relation to the joint venture;

• its share of the revenue from sale of trading stock properties, together with its share of any expenses incurred by the joint venture; and

• any expenses that it has incurred in respect of its interest in the joint venture.

The average monthly number of persons (including directors) employed by the company during the period was 0 (2018 - 0).

The company owns the entire issued share capital of Dereham Place Developments Limited, a company incorporated in England and Wales. Dereham Place Developments Limited has been dormant since incorporation.

At the balance sheet date the market value of the listed investments was £8,398 (2018: £8,726).

Included in debtors is an amount of £2,416,556 (2018: £2,301,563) due from the director. This is the maximum outstanding balance during the period. The company charged interest on the loan balance at 2.5% per annum of £90,993. The loan account has been fully repaid subsequent to the year end on 22 January 2020.

The current asset investments were previously recognised at the cost of the contributions towards the acquisition and development of a number of properties with joint venture partners. The investments have been restated to reflect the interest in such jointly controlled property trading operations by the company recognising it its financial statements:

• its share of the jointly controlled property assets, classified as trading stock;

• any liabilities that it has incurred;

• its share of any liabilities incurred jointly with the other venturer in relation to the joint venture;

• its share of the revenue from sale of trading stock properties, together with its share of any expenses incurred by the joint venture; and

• any expenses that it has incurred in respect of its interest in the joint venture.