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BEAVERBROOK TOWN HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
Beaverbrook Town House Limited is a private limited comany, limited by shares, registered in England and Wales. Its registered address is Beaverbrook Estate, Reigate Road, Leatherhead, KT22 8QX.
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 Directors, after making enquiries and considering the available resources and financial forecast, have formed a judgement that the Company can and will continue operating for the foreseeable future. The Company provides services to 115 Sloane Street Hotel Ltd, a third-party entity that operates Beaverbrook Town House since its opening in August 2021. Beaverbrook Town House Limited is reliant on 115 Sloane Street Hotel Ltd to reimburse costs incurred where appropriate, and pays its monthly fee. The agreement in place, the payments to date, and the future plans for 115 Sloane Street Hotel Ltd give the Directors comfort that payment will continue for at least the next 12 months and therefore the company has sufficient cash to meet its minimal costs. On this basis, the directors consider it appropriate to prepare these financial statements on a going concern basis.
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 value added tax and other sales taxes. Revenue is generated under a management agreement with 115 Sloane Street Hotel Limited. Under this agreement, a proportion of the revenue earned by 115 Sloane Street Hotel Limited is recognised and the costs incurred by the company are those that are entitled to be reimbursed. Revenue is recognised in the period in which the corresponding revenue is earned and costs are incurred.
Investments in subsidiaries are measured at cost less accumulated impairment.
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.
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