LANCASHIRE_PROPERTY_RENTA - Accounts

This report is made solely to the Board of Directors of Lancashire Property Rentals Limited, as a body, in accordance with the terms of our engagement letter dated 14 May 2015. Our work has been undertaken solely to prepare for your approval the financial statements of Lancashire Property Rentals Limited and state those matters that we have agreed to state to the Board of Directors of Lancashire Property Rentals Limited, as a body, in this report in accordance with AAF 2/10 as detailed at icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Lancashire Property Rentals Limited and its Board of Directors as a body, for our work or for this report.

The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The directors have prepared projected trading and cash flow forecasts for at least 12 months from the date of approval of these financial statements, which indicate that the company will continue to be profitable and have adequate cash balances to enable it to realise its assets and discharge its liabilities in the normal course of business for at least the next 12 months. Accordingly, the directors consider it appropriate to adopt the going concern basis in preparing the accounts.

Turnover represents rent receivable, net of amounts written off. Income is recognised on a straight line basis over the rental period.rent receivable, net of amounts written off. Income is recognised on a straight line basis over the rental period.

Investment Properties

Investment properties are included in the balance sheet at their open market value. The surplus or deficit arising from the annual revaluation is transferred to the investment revaluation reserve unless a deficit, or its reversal on an individual investment property is expected to be permanent in which case it is recognised in the profit and loss account for the year.

Although this accounting policy is in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. Investment properties are held for their investment potential and not for use by the company and so their current value is of prime importance. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view.