ACCOUNTS - Final Accounts preparation
ACCOUNTS - Final Accounts preparation
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Registered number:
Unaudited
Information for filing with the registrar
For the Year Ended
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C.E.Murch Limited
Chartered accountants' report to the board of directors on the preparation of the unaudited statutory financial statements of C.E.Murch Limited for the Year Ended 5 April 2017
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of C.E.Murch Limited for the year ended 5 April 2017 which comprise the Balance sheet and the related notes from the Company 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 (ICAEW), 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 C.E.Murch Limited, as a body, in accordance with the terms of our engagement letter dated 24 December 2014. Our work has been undertaken solely to prepare for your approval the financial statements of C.E.Murch Limited and state those matters that we have agreed to state to the Board of directors of C.E.Murch Limited, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than C.E.Murch Limited and its Board of directors, as a body, for our work or for this report.
It is your duty to ensure that C.E.Murch 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 or loss of C.E.Murch Limited. You consider that C.E.Murch Limited is exempt from the statutory audit requirement for the year.
Chartered Accountants
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C.E.Murch Limited
Registered number: 00466774
Balance sheet
As at
The financial statements have been delivered in accordance with the provisions applicable to companies subject
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C.E.Murch Limited
Registered number: 00466774
Balance sheet (continued)
As at 5 April 2017
to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 4 to 16 form part of these financial statements.
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2017
C.E.Murch Limited is a private company limited by shares which was incorporated in the UK and registered in England. Company number 00466774.
The company's registered office is 37 St Margaret's Street, Canterbury, Kent, CT1 2TU. The financial statements have been presented in Sterling (£).
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The company's working capital requirements are met by a bank overdraft facility and loans from the company's directors. The company's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company will be able to operate within the level of its current facility. No matters have been drawn to the directors' attention to suggest that the bank facility will be withdrawn.
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the accounts.
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2017
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2017
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of income and retained earnings.
Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in the Statement of income and retained earnings unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of income and retained earnings.
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Investments in listed company shares are remeasured to market value at each Balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2017
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Finance costs are charged to the Statement of income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2017
2.Accounting policies (continued)
All borrowing costs are recognised in the Statement of income and retained earnings in the year in which they are incurred.
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of income and retained earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that:
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2017
4.Taxation (continued)
There were no factors that may affect future tax charges.
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2017
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2017
6.Tangible fixed assets (continued)
At 5 April 2016 the valuation of land and buildings totalling £4,940,000 comprises an historic cost element of £1,053,257 and a revaluation element of £3,886,743.
A valuation of land and buildings was performed as at 5 April 2016, the date of transition to FRS102, by the directors on a market value basis in the sum of £4,940,000. No depreciation has been charged on these assets in 2016.
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2017
7.Fixed asset investments (continued)
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2017
The 2017 valuations were made by the directors, on an open market value for existing use basis.
At 5 April 2016 and 5 April 2017 the valuation of investment properties totalling £925,000 comprises an historic cost element of £320,028 and a revaluation element of £604,972.
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2017
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2017
Revaluation reserve
The revaluation reserve relates to the accumulated revaluations surpluses in respect of freehold property and other fixed assets, less the associated deferred tax provision.
The company operates a defined contributions pension scheme. The assets of the scheme are held seperatly from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £18,000 (2016 - £18,000).
Within other creditors are directors' loan accounts at the year end of £2,210,205 (2016 - £1,832,780).
All these loans are interest free.
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2017
The company was controlled throughout the current and previous year by its directors J M Atkins and Mrs S E Atkins by virtue of the fact that between them they own the majority of the company's ordinary share capital.
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