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FARLEIGH (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2022
Farleigh (Reading) Limited (the company) is a private company limited by shares, incorporated and domiciled in England. The address of its registered office is 17 Hockley Court, Hockley Heath, Solihull, West Midlands, B94 6NW.
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 following principal accounting policies have been applied:
The company is dependent upon the financial support of a related company. The directors of the company have received assurances from the related company that it will continue to provide the financial support required to enable the company to continue to trade. Accordingly these financial statements have been prepared on a going concern basis.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the period in which they are incurred.
Properties held for resale and options to acquire land are carried as stock and are stated at the lower of cost and net realisable value. Costs include directly attributable expenditure in relation to the acquisition and development of properties. Net realisable value is calculated as the estimated market value of the property less costs to be incurred making a sale.
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.
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.
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