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Registered number: 01865098
AUSTIN DESMOND FINE ART LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 OCTOBER 2021
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AUSTIN DESMOND FINE ART LIMITED
COMPANY INFORMATION
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AUSTIN DESMOND FINE ART LIMITED
CONTENTS
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Statement of financial position
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Notes to the financial statements
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AUSTIN DESMOND FINE ART LIMITED
REGISTERED NUMBER: 01865098
STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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AUSTIN DESMOND FINE ART LIMITED
REGISTERED NUMBER: 01865098
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 OCTOBER 2021
The director considers that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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 financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 3 to 7 form part of these financial statements.
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AUSTIN DESMOND FINE ART LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
Austin Desmond Fine Art Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office is 8th Floor, Becket House, 36 Old Jewry, London, EC2R 8DD.
The principal actlvity of the company continued to be that of art dealers. Given the circumstances of the
general uncertainty in the art market, and the director's policy of selling paintings to meet trading and financing obligations as they fall due, the director is of the opinion that the result for the year is satisfactory.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The following principal accounting policies have been applied:
The Company has paid special attention to the COVID-19 pandemic and the associated impact on
the business.
The current and future financial position of the Company, its cash flows and liquidity position have
been reviewed by the directors. These have been prepared with a very prudent view on the likely
gradual recovery in the Company's operations and have been stress tested to ensure that cash flows and liquidity are sufficiently robust to allow the Company to continue to trade during this period.
In managing its cash flows, the Company has taken actions to manage short and longer term liquidity including reducing the Company’s overhead base.
Although it is not possible to reliably estimate the length of severity of the COVID-19 outbreak and its
long term impact, at the date of approving the financial statements, the directors are confident that
the existing funding facilities will provide sufficient headroom to meet the forecast cash requirements
during the twelve months from the date of approval of the financial statements having considered any
additional requirements that would be contingent on a downturn in activity over the same period
(specifically in relation to the COVID-19 pandemic).
The directors consider it appropriate to prepare the financial statements on a going concern basis.
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AUSTIN DESMOND FINE ART LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Revenue represents amounts receivable for sale of paintings, drawings and sculptures. AII the
company's turnover arises from its principal activity carried out in the United Kingdom.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Interest income is recognised in profit or loss using the effective interest method.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
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Short-term leasehold property
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Over the remaining lives of the lease.
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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AUSTIN DESMOND FINE ART LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
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The average monthly number of employees, including directors, during the year was 1 (2020 - 1).
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AUSTIN DESMOND FINE ART LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
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Short-term leasehold property
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Charge for the year on owned assets
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Finished goods and goods for resale
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Prepayments and accrued income
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AUSTIN DESMOND FINE ART LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Mr J A W Austin has formally waived a salary entitlement of £30,000. The cumulative liability at the balance sheet date is £690,000. The director considers that the company would be liable for this amount if a claim was made. At the balance sheet date, no such claim had been made.
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Related party transactions
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Contemporary Books Limited is a company incorporated in England and Wales in which Mr J A W Austin is a director and shareholder. During the year management fees of £nil (2020: £nil) was charged by the company to Contemporary Books Limited. At the balance sheet date £4,614 was owed to Contemporary Books Limited (2020: £4,614).
During the year stock valued at £104,600 (2020: £275,200) was purchased from Freetask Limited, a company in which Mr J A W Austin is a director. At the end of the year £36,000 (2020: £36,000) was owed by the company to Freetask Limited.
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The ultimate controlling party is Mr J A W Austin, by virtue of his shareholding.
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