Abbreviated Company Accounts - HOUSTON SECURITIES LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The financial statements have also been prepared on the going concern basis which assumes that the company will continue in operational existence for the foreseeable future.

The validity of this assumption depends on the continued support of the director and shareholder, who is the primary creditor, and that he will ensure that the company has sufficient resources to meet its liabilities as they are incurred.

Turnover policy
The turnover shown in the profit and loss account represents the total amount receivable for rental income and services provided under the principal activities of the company, exclusive of Value Added Tax.

Tangible assets depreciation policy
Depreciation is calculated so as to write off the cost or revaluation of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Fixtures & Fittings - 25% p.a straight line
Equipment - 33% p.a straight line


An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historic cost depreciation charge on those assets is transferred annually from the revaluation reserve to the profit and loss reserve.

In accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), the Company's properties, which are held for long term investments are included in the balance sheet at their open market value. The surplus or deficit on revaluation is transferred to the investment property revaluation reserve. Depreciation is not provided in respect of these properties.

This policy represents a departure from statutory accounting principles, which require depreciation to be provided on all fixed assets. The Director considers that this policy is necessary in order that the Accounts may give a true and fair view because current values and changes in current values are of prime importance rather than the calculation of systematic depreciation. Depreciation is only one of many factors reflected in the valuation and the amount, which might otherwise have been shown cannot be separately identified or quantified.

Leasehold properties are not amortised where the unexpired term is over twenty years.

Other accounting policies
Hire Purchase and Leased Assets

All leases are regarded as operating leases and the payments made under them are charged to the profit and loss account on a straight line basis over the lease term.

Contribution to Pension Funds

The company operates a defined contribution pension scheme. The amount charged to the profit and loss account in respect of pension costs is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Deferred Taxation

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions:

Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold.

Deferred tax assets are recognised only to the extent that the director considers that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Financial Instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either 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.

Investments

Investments are included at cost less amounts written off. Profits or losses arising from disposals of fixed asset investments are treated as part of the result from ordinary activities.

3Fixed assets Investments
The investments relate to the ownership of second class rights for the musical production Doctor Dolittle which cost £10,000 against which an impairment provision has been made of £9,999.

6Transactions with directors

At the balance sheet date the company owed Mr S P Gregg £689,719 (2013 - £77,232). This loan is unsecured and interest free.

During the year the company received funds and advanced funds to Houston Motor Cars Limited, a company in which Mr S P Gregg is director and shareholder.

During the year the company acquired a motor vehicle from Houston Motor Cars Limited and sold two motor vehicles to Houston Motor Cars Limited. The profit earned on these transactions is recorded within the profit and loss account.

At 30 September 2015 the amount outstanding is £205,277 (2013 - £nil) which is included within other debtors. The advance is interest free and there are no scheduled dates for repayment.

Mr D C Gregg, brother to Mr S P Gregg, advanced a loan of £11,731 (2014 - £15,111) to the company. T his loan is interest free and there are no scheduled repayment terms. This amount is included within other creditors falling due within one year.

Mr S P Gregg has overall control of the company.