COMPANYTWO_LTD - Accounts

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

For the financial year ended 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their 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 year 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.

Companytwo Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Stack and Bonner, 50 Wood Street, Kingston upon Thames, Surrey, KT1 1UW.

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.

During the year the company has made a loss of £18,015 and has net liabilities of £192,752. Included in other creditors are amounts due to the directors totalling £9,335. The directors have confirmed to support the company.

The current COVID-19 pandemic has created uncertainty over the future financial implication to the worldwide economy. The directors are confident about the company’s ability to trade as a going concern and meet its financial obligations and have confirmed their support for the company for the foreseeable future. Therefore the company continues to adopt the going concern basis of accounting in the preparing of the annual financial statements.

Turnover comprises revenue recognised by the company in respect of real estate services supplied during the year, exclusive of Value Added Tax and trade discounts.

Income is recognised in the period in which the service supplied.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to 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.

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.

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.

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.

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.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

At the balance sheet date the company owed the director A Pollard £9,335 (2021 - £10,057). This loan is interest free and repayable on demand.

At the balance sheet date the company owed £21,561 (2021 - £21,778) to Companyone Limited. The companies are connected as they have mutual directors and controlling parties.

At the balance sheet date the company owed £49,838 (2021 - £49,838) to Andrew Pollard Limited. The companies are connected as they have mutual directors and controlling parties.

At the balance sheet date the company owed £1,693 (2021 - £1,045) to Stack & Bonner (Lettings) Limited. The companies are connected as they have mutual directors and controlling parties.

At the balance sheet date the company was owed £19,493 (2021 - £16,493) by Companythree Limited. The companies are connected as they have mutual directors and controlling parties.