ACCOUNTS - Final Accounts

Analysis of the maturity of loans is given below:

DECENTRALISATION (INVESTMENTS) LIMITED - Company Information

Caseware UK (AP4) 2016.0.181 2016.0.181 2017-09-302017-09-30The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.truetrueproperty investmentfalse2016-10-01 00663262 2016-10-01 2017-09-30 00663262 2015-10-01 2016-09-30 00663262 2017-09-30 00663262 2016-09-30 00663262 2015-10-01 00663262 c:IncreaseDecreaseDueToTransitionFromPreviousStandard 2015-10-01 00663262 c:IncreaseDecreaseDueToTransitionFromPreviousStandard 2016-09-30 00663262 c:IncreaseDecreaseDueToTransitionFromPreviousStandard 2015-10-01 2016-09-30 00663262 d:Director2 2016-10-01 2017-09-30 00663262 c:FreeholdInvestmentProperty 2017-09-30 00663262 c:FreeholdInvestmentProperty 2016-09-30 00663262 c:FreeholdInvestmentProperty 2 2016-10-01 2017-09-30 00663262 c:CurrentFinancialInstruments 2017-09-30 00663262 c:CurrentFinancialInstruments 2016-09-30 00663262 c:Non-currentFinancialInstruments 2017-09-30 00663262 c:Non-currentFinancialInstruments 2016-09-30 00663262 c:CurrentFinancialInstruments c:WithinOneYear 2017-09-30 00663262 c:CurrentFinancialInstruments c:WithinOneYear 2016-09-30 00663262 c:Non-currentFinancialInstruments c:AfterOneYear 2017-09-30 00663262 c:Non-currentFinancialInstruments c:AfterOneYear 2016-09-30 00663262 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2017-09-30 00663262 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2016-09-30 00663262 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2017-09-30 00663262 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2016-09-30 00663262 c:ShareCapital 2017-09-30 00663262 c:ShareCapital 2016-09-30 00663262 c:ShareCapital 2015-10-01 00663262 c:InvestmentPropertiesRevaluationReserve 2016-10-01 2017-09-30 00663262 c:InvestmentPropertiesRevaluationReserve 2017-09-30 00663262 c:InvestmentPropertiesRevaluationReserve 2 2016-10-01 2017-09-30 00663262 c:InvestmentPropertiesRevaluationReserve 3 2016-10-01 2017-09-30 00663262 c:InvestmentPropertiesRevaluationReserve 2015-10-01 2016-09-30 00663262 c:InvestmentPropertiesRevaluationReserve 2016-09-30 00663262 c:InvestmentPropertiesRevaluationReserve 2015-10-01 00663262 c:InvestmentPropertiesRevaluationReserve 2 2015-10-01 2016-09-30 00663262 c:InvestmentPropertiesRevaluationReserve 3 2015-10-01 2016-09-30 00663262 c:OtherMiscellaneousReserve 2017-09-30 00663262 c:OtherMiscellaneousReserve 2016-09-30 00663262 c:OtherMiscellaneousReserve 2015-10-01 00663262 c:RetainedEarningsAccumulatedLosses 2016-10-01 2017-09-30 00663262 c:RetainedEarningsAccumulatedLosses 2017-09-30 00663262 c:RetainedEarningsAccumulatedLosses 2 2016-10-01 2017-09-30 00663262 c:RetainedEarningsAccumulatedLosses 3 2016-10-01 2017-09-30 00663262 c:RetainedEarningsAccumulatedLosses 2015-10-01 2016-09-30 00663262 c:RetainedEarningsAccumulatedLosses 2016-09-30 00663262 c:RetainedEarningsAccumulatedLosses 2015-10-01 00663262 c:RetainedEarningsAccumulatedLosses 2 2015-10-01 2016-09-30 00663262 c:RetainedEarningsAccumulatedLosses 3 2015-10-01 2016-09-30 00663262 c:OtherDeferredTax 2017-09-30 00663262 c:OtherDeferredTax 2016-09-30 00663262 d:FRS102 2016-10-01 2017-09-30 00663262 d:AuditExempt-NoAccountantsReport 2016-10-01 2017-09-30 00663262 d:FullAccounts 2016-10-01 2017-09-30 00663262 d:PrivateLimitedCompanyLtd 2016-10-01 2017-09-30 iso4217:GBP xbrli:pure

Registered number: 00663262

DECENTRALISATION (INVESTMENTS) LIMITED

UNAUDITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2017


DECENTRALISATION (INVESTMENTS) LIMITED REGISTERED NUMBER:00663262

BALANCE SHEET

AS AT 30 SEPTEMBER 2017

		2017		2016
Note		£		£

Fixed assets
Investment property	4		4,162,500		3,000,000
			4,162,500		3,000,000
Current assets
Debtors: amounts falling due after more than one year	5	15,864		18,503
Debtors: amounts falling due within one year	5	16,200		16,930
Cash at bank and in hand	6	109,090		109,415
		141,154		144,848
Creditors: amounts falling due within one year	7	(328,497)		(317,224)
Net current liabilities			(187,343)		(172,376)
Total assets less current liabilities			3,975,157		2,827,624
Creditors: amounts falling due after more than one year	8		(30,533)		(45,536)
Provisions for liabilities
Deferred tax	10	(767,213)		(576,010)
			(767,213)		(576,010)
Net assets			3,177,411		2,206,078

Capital and reserves
Called up share capital		1,000	1,000
Investment property reserve	11	3,175,943	2,204,646
Other reserves	11	33	33
Profit and loss account	11	435	399
		3,177,411	2,206,078

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DECENTRALISATION (INVESTMENTS) LIMITED REGISTERED NUMBER:00663262

BALANCE SHEET (CONTINUED)

AS AT 30 SEPTEMBER 2017

The directors consider that the company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The company has opted not to file the statement of comprehensive income 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 24 July 2018.

R H Esdaile

Director

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DECENTRALISATION (INVESTMENTS) LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2017

	Called up share capital	Investment property revaluation reserve	Other reserves	Profit and loss account	Total equity
	£	£	£	£	£
At 1 October 2015	1,000	1,804,155	33	(849)	1,804,339
Comprehensive income for the year
Profit for the year	-	-	-	476,739	476,739
Total comprehensive income for the year	-	-	-	476,739	476,739
Contributions by and distributions to owners
Dividends: Equity capital	-	-	-	(75,000)	(75,000)
Investment property revaluation	-	500,000	-	(500,000)	-
Deferred tax movement on investment property revaluation	-	(99,509)	-	99,509	-
Total transactions with owners	-	400,491	-	(475,491)	(75,000)

At 1 October 2016	1,000	2,204,646	33	399	2,206,078
Comprehensive income for the year
Profit for the year	-	-	-	1,011,333	1,011,333
Total comprehensive income for the year	-	-	-	1,011,333	1,011,333
Contributions by and distributions to owners
Dividends: Equity capital	-	-	-	(40,000)	(40,000)
Investment property revaluation	-	1,162,500	-	(1,162,500)	-
Deferred tax movement on investment property revaluation	-	(191,203)	-	191,203	-
Total transactions with owners	-	971,297	-	(1,011,297)	(40,000)
At 30 September 2017	1,000	3,175,943	33	435	3,177,411

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DECENTRALISATION (INVESTMENTS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2017

1.	General information

Decentralisation (Investments) Limited is a private company limited by shares, incorporated in England and Wales. Its registered office is 51 Lincoln's Inn Fields, London WC2A 3NA.
The principal activity of the company continued to be that of property investment.

2.Accounting policies

2.1

Basis of preparation of financial statements

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:

2.2

Revenue

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:

∙the company has transferred the significant risks and rewards of ownership to the buyer;

∙the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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:

∙the amount of revenue can be measured reliably;

∙it is probable that the company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.3

Finance costs

Finance costs are charged to the Statement of Comprehensive Income 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.

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DECENTRALISATION (INVESTMENTS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2017

2.Accounting policies (continued)

2.4

Borrowing costs

All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred.

2.5

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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.

2.6

Investment property

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 Comprehensive Income.

2.7

Debtors

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.

2.8

Cash and cash equivalents

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.

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DECENTRALISATION (INVESTMENTS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2017

2.Accounting policies (continued)

2.9

Creditors

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.

2.10

Provisions for liabilities

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 Comprehensive Income 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.

2.11

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

2.12

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Employees

The average monthly number of employees, including directors, during the year was 2 (2016 - 2).

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DECENTRALISATION (INVESTMENTS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2017

4.	Investment property

		Freehold investment property
		£
	Valuation
	At 1 October 2016	3,000,000
	Surplus on revaluation	1,162,500
	At 30 September 2017	4,162,500

The 2017 valuation of the residential properties was made by Westbury Investment Management Limited and the 2017 valuation of the commercial properties was made by the directors, both on an open market value for existing use basis.

If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
	2017	2016
	£	£

	Historic cost	79,345	79,345
		79,345	79,345

5.	Debtors
		2017	2016
		£	£

Due after more than one year
Other debtors	15,864	18,503
	15,864	18,503

					2017	2016
					£	£

Due within one year
Trade debtors	2,042	9,126
Other debtors	4,407	7,804
Prepayments and accrued income	9,751	-
	16,200	16,930

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DECENTRALISATION (INVESTMENTS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2017

6.	Cash and cash equivalents
		2017	2016
		£	£

Cash at bank and in hand	109,090	109,415
	109,090	109,415

7.	Creditors: Amounts falling due within one year
		2017	2016
		£	£

Bank loans	15,003	15,003
Amounts owed to group undertakings	272,003	273,503
Taxation and social security	28,925	19,062
Other creditors	-	666
Accruals and deferred income	12,566	8,990
	328,497	317,224

8.	Creditors: Amounts falling due after more than one year
		2017	2016
		£	£

Bank loans	30,533	45,536
	30,533	45,536

The following liabilities were secured:
	2017	2016
	£	£


Bank loans	45,536	60,539
	45,536	60,539

Details of security provided::

The Barclays bank loan is secured by way of a debenture and fixed and floating charges over the assets of the company.

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DECENTRALISATION (INVESTMENTS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2017

Amounts falling due within one year
Bank loans	15,003	15,003
Amounts falling due 1-2 years
Bank loans	15,003	15,003
Amounts falling due 2-5 years
Bank loans	15,530	30,533

	45,536	60,539

10.	Deferred taxation

	2017	2016
	£	£

At beginning of year	(576,010)	(476,501)
Charged to profit or loss	(191,203)	(99,509)
At end of year	(767,213)	(576,010)

The provision for deferred taxation is made up as follows:
	2017	2016
	£	£

	Investment property revaluation	767,213	576,010
		767,213	576,010

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DECENTRALISATION (INVESTMENTS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2017

11.

Reserves

Investment property revaluation reserve

This reserve forms part of the profit and loss reserve representing the non-distributable element arising from the revaluation of investment property net of deferred tax.

Other reserves

This reserve is a capital redemption reserve.

Profit & loss account

All reserves in respect of profit and loss are distributable reserves.

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	DECENTRALISATION (INVESTMENTS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS		FOR THE YEAR ENDED 30 SEPTEMBER 2017

12.	First time adoption of FRS 102
	The company transitioned to FRS 102 from previously extant UK GAAP as at 1 October 2015. The impact of the transition to FRS 102 is as follows:
		As previously stated 1 October 2015	Effect of transition 1 October 2015	FRS 102 (as restated) 1 October 2015	As previously stated 30 September 2016	Effect of transition 30 September 2016	FRS 102 (as restated) 30 September 2016
		£	£	£	£	£	£

Fixed assets	2,500,000	-	2,500,000	3,000,000	-	3,000,000
Current assets	112,431	-	112,431	144,848	-	144,848
Creditors: amounts falling due within one year	(270,499)	-	(270,499)	(317,224)	-	(317,224)
Net current liabilities	(158,068)	-	(158,068)	(172,376)	-	(172,376)
Total assets less current liabilities	2,341,932	-	2,341,932	2,827,624	-	2,827,624
Creditors: amounts falling due after more than one year	(61,092)	-	(61,092)	(45,536)	-	(45,536)
Provisions for liabilities	-	(476,501)	(476,501)	-	(576,010)	(576,010)
Net assets	2,280,840	(476,501)	1,804,339	2,782,088	(576,010)	2,206,078

Capital and reserves

2,280,840

(476,501)

1,804,339

2,782,088

(576,010)

2,206,078

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DECENTRALISATION (INVESTMENTS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2017

12.First time adoption of FRS 102 (continued)

		As previously stated 30 September 2016	Effect of transition 30 September 2016	FRS 102 (as restated) 30 September 2016
		£	£	£

Turnover	154,239	-	154,239
	154,239	-	154,239
Administrative expenses	(55,678)	-	(55,678)
Other operating income	-	500,000	500,000
Operating profit	98,561	500,000	598,561
Interest payable and similar charges	(3,251)	-	(3,251)
Taxation	(19,062)	(99,509)	(118,571)
Profit on ordinary activities after taxation and for the financial year	76,248	400,491	476,739

Explanation of changes to previously reported profit and equity:

The fair value adjustment made to investment properties in 2016 is now included in profit and loss along with deferred tax movement.
Deferred tax has been accounted for on revaluations of investment properties.

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