SUSSEX_MEDICAL_CHAMBERS_L - Accounts

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Sussex Medical Chambers Limited for the year ended 31 March 2016 which comprise the Profit and Loss Account, the Balance Sheet and the related notes from the company’s accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance/.

This report is made solely to the Board of Directors of Sussex Medical Chambers Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Sussex Medical Chambers Limited and state those matters that we have agreed to state to the Board of Directors of Sussex Medical Chambers Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Sussex Medical Chambers Limited and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that Sussex Medical Chambers Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Sussex Medical Chambers Limited. You consider that Sussex Medical Chambers Limited is exempt from the statutory audit requirement for the year.

The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

The accounts have been prepared on a going concern basis, which assumes that the company will continue trading for the foreseeable future. The company's bank, creditors and parent are happy to provide their continued support in meeting the company's liabilities as needed. The financial statements do not include any adjustment that would result from a withdrawal of their support.

Turnover represents amounts receivable for goods and services.

The directors note that previously plant and machinery and computer equipment had been depreciated at 25%, this has now been changed to 5%. The directors consider that this represents a change in accounting estimates not a change in accounting policy. Furthermore the directors do not consider that the depreciation charged in previous period constitutes a fundamental error. Accordingly the company has not recorded a prior year adjustment.

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

The financial statements present information about the company as an individual undertaking and not about its group. The company has not prepared group accounts as it is exempt from the requirement to do so by section 400 of the Companies Act 2006 as it is a subsidiary undertaking of Sussex Medical Centre Limited, a company incorporated in England and Wales, and is included in the consolidated accounts of that company.