ARDVORLICH_ESTATE_LIMITED - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 15 April 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.

Ardvorlich Estate Limited is a private company limited by shares incorporated in Scotland. The registered office is Ardvorlich, Lochearnhead, Perthshire, FK19 8QE.

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 15 April 2017 are the first financial statements of Ardvorlich Estate 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 16 April 2015. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 11.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

The average monthly number of persons (including directors) employed by the company during the year was 6 (2016 - 6).

Included in land and buildings is freehold property amounting to £20,626 (2016 - £20,626) which is not being depreciated. These figures also include £1,240,531 (2016 - £1,312,639) relating to the Hydropower scheme.

The fair value of the investment property has been arrived at on the basis of a valuation carried out at 3 December 2013 by CKD Galbraith Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

The bank loans are secured.

The bank loans are secured.

This reserve records the retained earnings and accumulated losses.

This reserve includes non-distributable profits of £992,760 (2016 - £980,460) as a result of investment properties being measured at fair value. These profits are after deducting the deferred tax arising on these fair values.

The company operates a joint loan account with the directors and £122,918 (2016 - £146,935) was due to the directors at the balance sheet date. The current account is unsecured, no interest is charged and there are no fixed terms of repayment.

During the year the company received £7,720 (2016 - £7,720) in respect of rent from John Stewart & Partners, a partnership in which the directors are also partners. In addition, the company was charged £46,311 (2016 - £44,167) from John Stewart & Partners for wages and £2,131 (2016 - £2,712) for other expenses.

During the year the company provided an interest free loan of £45,000 (2016 - £65,000) to John Stewart & Partners, at the balance sheet date the company was due £151,696 (2016 - £165,146) from John Stewart & Partners.

This is the first year that the company has presented its results under FRS 102. The last financial statements under previous UK GAAP were for the year ended 15 April 2016. The date of transition to FRS 102 was 16 April 2015. Set out below are the changes in accounting policies which reconcile profit for the financial year ended 15 April 2016 and the total equity as at 16 April 2015 and 15 April 2016 between UK GAAP as previously reported and FRS 102.

FRS 102 requires investment property to be recognised at fair value. An adjustment was required to cancel the accumulated depreciation relating to the property of £5,932 at 16 April 2015 and the charge in the previous year of £781 and also to transfer the value of the property from freehold land and buildings to investment properties at the start of the previous year. During the year it was also identified that the directors had understated the value of investment properties at the date of transition by £1,221,260 and the investment properties and the non-distributable profit and loss reserve have been restated accordingly.

FRS 102 requires deferred tax to be recognised on the revaluation of investment properties. Deferred tax has been recognised at 20% on the liability recognised on transition at 16 April 2015. Accordingly, at transition, a charge of £240,900 was recognised on the balance sheet. In the year ended 15 April 2016 the company has recognised a decrease in this charge of £100. The adjustments have been set off against the value of investment properties in the non-distributable profit and loss reserves.