Association of Serviced Apartment Providers - Period Ending 2020-08-31

Association of Serviced Apartment Providers

(Registration number: 07014055)
Balance Sheet as at 31 August 2020

	Note	2020  £	(As restated) 2019  £
Fixed assets
Intangible assets	4	5,999	7,910
Current assets
Debtors	5	28,346	36,212
Cash at bank and in hand		106,440	224,094
		134,786	260,306
Creditors: Amounts falling due within one year	6	(59,589)	(145,851)
Net current assets		75,197	114,455
Net assets		81,196	122,365
Capital and reserves
Profit and loss account		81,196	122,365
Total equity		81,196	122,365

For the financial year ending 31 August 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 27 May 2021 and signed on its behalf by:
 

D Greenwood
Director

Association of Serviced Apartment Providers

Notes to the Financial Statements for the Year Ended 31 August 2020

1

General information

The company is a company limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £10 towards the assets of the company in the event of liquidation.

The address of its registered office is:
19.5 Highnam Business Centre
Newent Road
Highnam
Gloucestershire
GL2 8DN

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Intangible assets

Website development costs are shown at historical cost. Website development costs have a useful life of 5 years and are carried at cost less accumulated amortisation.

Association of Serviced Apartment Providers

Notes to the Financial Statements for the Year Ended 31 August 2020

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Website development costs	20% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.
 

Association of Serviced Apartment Providers

Notes to the Financial Statements for the Year Ended 31 August 2020

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

	2020  No.	2019  No.
Average number of employees	4	4

4

Intangible assets

	Website development costs  £
Cost
At 1 September 2019	9,555
At 31 August 2020	9,555
Amortisation
At 1 September 2019	1,645
Amortisation charge	1,911
At 31 August 2020	3,556
Carrying amount
At 31 August 2020	5,999
At 31 August 2019	7,910

5

Debtors

	2020  £	(As restated) 2019  £
Trade debtors	16,531	21,031
Other debtors	11,436	1,345
Prepayments	379	13,836
	28,346	36,212

Association of Serviced Apartment Providers

Notes to the Financial Statements for the Year Ended 31 August 2020

6

Creditors

Creditors: amounts falling due within one year

	2020  £	2019  £
Due within one year
Trade creditors	31,022	46,867
Payments received on account	17,687	41,648
Other creditors	-	600
Accrued expenses	1,800	11,800
Deferred income	9,080	44,936
	59,589	145,851

7

Prior period errors

The prior period error relates to an overstatement of the company's debtors.

Costs in the year ended 31 August 2019 to the value of £7,500 were originally omitted from cost of sales.

The impact on the original financial statements as originally stated is as follows:

The reported profit for the period was overstated by £7,500 and debtors were overstated by £7,500.

8

Non adjusting events after the financial period

The worldwide outbreak of the virus COVID-19 represents a significant event since the end of the financial period. The directors have considered the impact on going concern, concluding that the going concern basis remains an appropriate basis of preparation for these financial statements. COVID-19 is considered to be a non-adjusting post balance sheet event and therefore has not been taken into account in preparing the statement of financial position as at 31 August 2020.