LITTLE_VENICE_DEVELOPMENT - Accounts
LITTLE_VENICE_DEVELOPMENT - Accounts
Little Venice Developments Limited is a private company limited by shares incorporated in England and Wales. The registered office is Morley House, 36 Acreman Street, SHERBORNE, Dorset, DT9 3NX.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
These financial statements for the year ended 31 December 2016 are the first financial statements of Little Venice Developments Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 January 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
The company reports a loss for the period and correspondingly reports a net liabilities position at 31 December 2016. Both shareholder and director have expressed their commitment in providing continuing financial support for the company and confirmed that they do not intend to withdraw any funding already committed to within 12 months of the date of signing these accounts. For this reason the director considers that the preparation of the accounts on the going concern basis is appropriate.
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.
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
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.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
The average monthly number of persons (including directors) employed by the company during the year was 1 (2015 - 1).
The value of investments are shown at cost.
Creditors amounts falling due within one year includes deep discounted bonds of £2,139,000 (2015: £2,139,000) on which security has been given by the company. See the related parties note for further details on the terms of the deep discounted bonds.
Creditors amounts falling due after more than one year includes deep discounted bonds of £3,646,249 (2015: £1,822,454) on which security has been given by the company. See the related parties note for further details on the terms of the deep discounted bonds.
Lesing Nominees Limited
(Related by virtue of common control)
On 29 October 2014, the company received a loan of £150,000 from Lesing Nominees Limited. This loan was originally repayable on 29 April 2015 and the principle sum is subject to interest of 15% per annum. At the balance sheet date the loan remains outstanding and the amount due was £198,945 (2015 - £176,445).
On 8 July 2013, the company issued deep discounted bonds with an issue price of £1,544,000 to Lesing Nominees Limited. These bonds were redeemable at par value of £2,139,000 on 8 July 2015 and accrue finance charges accordingly. At the balance sheet date these deep discounted bonds remained outstanding with interest continuing to accrue. The amount due to Lesing Nominees Limited was £2,648,852 (2015 - £2,292,769). Included in this figure is interest charges accrued on the late redemption of this bond at 31 December 2016 of £509,852 (2015 £153,769).
On 15 January 2015, the company issued deep discounted bonds with an issue price of £1,567,211 to Lesing Nominees Limited. These bonds are redeemable at par value of £2,366,489 on 15 January 2018 and accrue finance charges accordingly. At the balance sheet date the amount due to Lesing Nominees was £2,089,367 (2015 - £1,822,455).
On 15 February 2016, the company issued deep discounted bonds with an issue price of £1,335,000 to Lesing Nominees Limited. These bonds are redeemable at par value of £2,103,960 on 28 February 2019 and accrue finance charges accordingly. At the balance sheet date the amount due to Lesing Nominees was £1,556,882 (2015 - £Nil).
Interest free loans have been granted by the directors to the company as follows:
The company is controlled by the director who owns 100% of the called up share capital.