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Registered number |
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Chartered Accountants |
Tiles & Baths Direct Limited | |
Report and financial statements | |
Contents | |
Page | |
Company information | 1 |
Director's report | 2 - 3 |
Strategic report | 4 |
Independent auditors' report | 5 - 6 |
Income statement | 7 |
Statement of financial position | 8 |
Statement of changes in equity | 9 |
Statement of cash flows | 10 |
Notes to the financial statements | 11 - 22 |
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Company Information |
Director |
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Auditors |
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Churchill House |
120 Bunns Lane |
Mill Hill |
London |
NW7 2AS |
Registered office |
Churchill House |
120 Bunns Lane |
Mill Hill |
London |
NW7 2AS |
Registered number |
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Registered number: 04151664 | |||||||
Director's Report | |||||||
The director presents his report and financial statements for the year ended |
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Principal activities | |||||||
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Dividends | |||||||
The director recommends a final dividend of £ |
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Director | |||||||
The following person served as a director during the year: | |||||||
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Director's responsibilities |
The director is responsible for preparing the report and financial statements in accordance with applicable law and regulations. | |||||||
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (Financial Reporting Standard 102 and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to: | |||||||
● | select suitable accounting policies and then apply them consistently; | ||||||
● | make judgements and estimates that are reasonable and prudent; | ||||||
● | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and | ||||||
● | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. | ||||||
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
The director is responsible for the maintenance and integrity of the corporate and financial information included on the company's website. It is important to bear in mind that legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. | |||||||
Strategic report | |||||||
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments, research & developments and financial instruments. | |||||||
Disclosure of information to auditors |
The director confirms that: | |||||||
● | so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and | ||||||
● | he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. |
This report was approved by the board on |
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Mr S Joel | |||||||
Director | |||||||
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Strategic Report | |||||||
The director presents his strategic report on the company for the year ended 30 April 2017. | |||||||
Business review | |||||||
The turnover has increased by 5%. The director considers the profit achieved on ordinary activities before taxation to be particularly satisfactory given the prevailing trading conditions. Adequate finance has been obtained to take advantage of business opportunities, and the director considers the state of affairs to be satisfactory. |
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The operating profit of the company has decreased from £1,222,149 to £1,062,667. The profit after taxation showed a decrease from £976,768 to £831,302. | |||||||
Principal risks and uncertainties | |||||||
The company faces a number of risks and uncertainties and the director believes that the key business risks are in respect of competition from both Local and Regional businesses and in ensuring product development and availability. In view of these risks and uncertainties, the director is aware that the development of the company may be affected by factors outside their control. | |||||||
Future developments | |||||||
The director anticipates the business environment will remain competitive. He believes that the company is in a good financial position and he remains confident that the company will consolidate its position. | |||||||
Research and development | |||||||
The company is continually undertaking research and development to improve the performance of its sales ordering, purchase ordering and stock control functions in order to preserve and safeguard the company's assets. | |||||||
Financial instruments | |||||||
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are mainly conducted in sterling. The company does enter into hedging transactions, such as forward contracts to hedge its currency risk when purchasing from suppliers whom insist on payment to them being made in their functional currency. | |||||||
This report was approved by the board on 23 January 2018 and signed on its behalf. | |||||||
Mr S Joel | |||||||
Director | |||||||
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Independent auditors' report | ||
to the members of Tiles & Baths Direct Limited | ||
We have audited the financial statements of Tiles & Baths Direct Limited for the year ended 30 April 2017 which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". | ||
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. | ||
Respective responsibilities of directors and auditors | ||
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Scope of the audit of the financial statements | ||
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Opinion on the financial statements | ||
In our opinion the financial statements: | ||
● | give a true and fair view of the state of the company's affairs as at 30 April 2017 and of its profit and cashflows for the year then ended; | |
● | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and | |
● | have been prepared in accordance with the requirements of the Companies Act 2006. |
Opinion on other matters prescribed by the Companies Act 2006 | ||
In our opinion the information given in the Director's Report and the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements. | ||
Matters on which we are required to report by exception | ||
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: | ||
● | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or | |
● | the accounts are not in agreement with the accounting records and returns; or | |
● | certain disclosures of directors’ remuneration specified by law are not made; or | |
● | we have not received all the information and explanations we require for our audit. |
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(Senior Statutory Auditor) | Churchill House | |
for and on behalf of | 120 Bunns Lane | |
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Mill Hill | |
Chartered Accountants | London | |
and Statutory Auditor | NW7 2AS | |
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Income Statement | ||||||||
For the year ended |
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Notes | 2017 | 2016 | ||||||
£ | £ | |||||||
Turnover | 3 |
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Cost of sales | ( |
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Gross profit |
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Distribution costs | ( |
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Administrative expenses | ( |
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Other operating income |
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Operating profit | 4 |
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(Loss)/gain on sale of fixed assets | ( |
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Profit on ordinary activities before taxation |
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Tax on profit on ordinary activities | 7 | ( |
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Profit for the financial year |
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Statement of Financial Position | |||||||
As at |
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Notes | 2017 | 2016 | |||||
£ | £ | ||||||
Fixed assets | |||||||
Intangible assets | 8 | - |
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Tangible assets | 9 |
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Current assets | |||||||
Stocks | 10 |
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Debtors | 11 |
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Cash at bank and in hand |
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Creditors: amounts falling due within one year | 12 | ( |
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Net current assets/(liabilities) |
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Total assets less current liabilities |
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Provisions for liabilities | |||||||
Deferred taxation | 13 | ( |
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Net assets |
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Capital and reserves | |||||||
Called up share capital | 14 |
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Profit and loss account | 15 |
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Total equity |
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Mr S Joel | |||||||
Director | |||||||
Approved by the board on |
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Statement of Changes in Equity | ||||||||||
For the year ended |
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Share | Share | Other | Profit | Total | ||||||
capital | premium | reserves | and loss | |||||||
account | ||||||||||
£ | £ | £ | £ | £ | ||||||
At 1 May 2015 |
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- | - |
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Profit for the financial year |
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Dividends | ( |
( |
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At 30 April 2016 |
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- | - |
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At 1 May 2016 |
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- | - |
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Profit for the financial year |
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Dividends | ( |
( |
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At 30 April 2017 |
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- | - |
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Statement of Cash Flows | |||||
For the year ended |
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Notes | 2017 | 2016 | |||
£ | £ | ||||
Operating activities | |||||
Operating profit | 1,062,667 | 1,222,149 | |||
Adjustments for: | |||||
Depreciation | 40,471 | 34,968 | |||
Amortisation of goodwill | - | 126 | |||
1,103,138 | 1,257,243 | ||||
Decrease/(increase) in stocks | 106,785 | (29,281) | |||
(Increase)/decrease in debtors | (271,403) | 176,887 | |||
Increase/(decrease) in creditors | 388,337 | (55,607) | |||
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Corporation tax paid | ( |
( |
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Cash generated by operating activities |
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Investing activities | |||||
Payments to acquire tangible fixed assets | ( |
( |
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Proceeds from sale of intangible fixed assets |
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Proceeds from sale of tangible fixed assets | ( |
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Cash used in investing activities | ( |
( |
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Financing activities | |||||
Equity dividends paid | ( |
( |
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Cash used in financing activities | ( |
( |
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Net cash generated/(used) | |||||
Cash generated by operating activities |
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Cash used in investing activities | ( |
( |
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Cash used in financing activities | ( |
( |
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Net cash generated/(used) |
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Cash and cash equivalents at 1 May | 1,482,611 | 1,617,179 | |||
Cash and cash equivalents at 30 April | 1,980,442 | 1,482,611 | |||
Cash and cash equivalents comprise: | |||||
Cash at bank |
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Tiles & Baths Direct Limited | ||||||||
Notes to the Financial Statements | ||||||||
For the year ended 30 April 2017 | ||||||||
1 | Summary of significant accounting policies | |||||||
Basis of preparation | ||||||||
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Turnover | ||||||||
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Tangible fixed assets |
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Plant and machinery | 15% straight line basis | |||||||
Fixtures, fittings, tools and equipment | 15% straight line basis |
Motor vehicle | 25% straight line basis | |||||||
Stocks | ||||||||
The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation | ||||||||
Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Foreign currency translation | ||||||||
At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets | ||||||||
The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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2 | Critical accounting estimates and judgements | |||||||
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The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. | ||||||||
(i) Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 9 for the carrying amount of the property plant and equipment, and note 1 for the useful economic lives for each class of assets. |
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(ii) Impairment of debtors The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 11 for the net carrying amount of the debtors and associated impairment provision. |
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3 | Analysis of turnover | 2017 | 2016 | |||||
£ | £ | |||||||
Sale of goods |
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By geographical market: | ||||||||
UK |
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Europe |
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Rest of world |
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4 | Operating profit | 2017 | 2016 | |||||
£ | £ | |||||||
This is stated after charging: | ||||||||
Depreciation of owned fixed assets |
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Amortisation of intangible fixed assets | - |
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Operating lease rentals - plant and machinery |
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Operating lease rentals - land and buildings |
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Auditors' remuneration for audit services |
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Auditors' remuneration for other services |
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Key management personnel compensation (including directors' emoluments) |
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Carrying amount of stock sold |
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5 | Director's emoluments | 2017 | 2016 | |||||
£ | £ | |||||||
Emoluments |
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Highest paid director: | ||||||||
Emoluments |
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6 | Staff costs | 2017 | 2016 | |||||
£ | £ | |||||||
Wages and salaries |
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Social security costs |
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Other pension costs |
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Average number of employees during the year | Number | Number | ||||||
Administration |
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Sales |
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7 | Taxation | 2017 | 2016 | |||||
£ | £ | |||||||
Analysis of charge in period | ||||||||
Current tax: | ||||||||
UK corporation tax on profits of the period |
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Deferred tax: | ||||||||
Origination and reversal of timing differences |
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Tax on profit on ordinary activities |
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Factors affecting tax charge for period | ||||||||
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: | ||||||||
2017 | 2016 | |||||||
£ | £ | |||||||
Profit on ordinary activities before tax |
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£ | £ | |||||||
Profit on ordinary activities multiplied by the standard rate of corporation tax |
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Effects of: | ||||||||
Expenses not deductible for tax purposes |
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Capital allowances for the period in excess of depreciation | ( |
( |
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Current tax charge for period |
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8 | Intangible fixed assets | £ | ||||||
Employee benefit trust: | ||||||||
Cost | ||||||||
At 1 May 2016 |
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Disposals | ( |
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At 30 April 2017 | - | |||||||
Amortisation | ||||||||
At 1 May 2016 |
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On disposals | ( |
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At 30 April 2017 | - | |||||||
Carrying amount | ||||||||
At 30 April 2017 | - | |||||||
At 30 April 2016 |
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9 | Tangible fixed assets | |||||||
Plant and machinery | Fixtures, fittings, tools and equipment | Total | ||||||
At cost | At cost | |||||||
£ | £ | £ | ||||||
Cost or valuation | ||||||||
At 1 May 2016 |
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Additions |
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At 30 April 2017 |
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Depreciation | ||||||||
At 1 May 2016 |
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Charge for the year |
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At 30 April 2017 |
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Carrying amount | ||||||||
At 30 April 2017 |
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At 30 April 2016 |
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10 | Stocks | 2017 | 2016 | |||||
£ | £ | |||||||
Finished goods and goods for resale |
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Supplier payments on account | 110,815 | 67,959 | ||||||
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11 | Debtors | 2017 | 2016 | |||||
£ | £ | |||||||
Trade debtors |
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Holding company loan debtor |
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Loan debtors | 181,365 | 181,391 | ||||||
Other debtors |
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Prepayments and accrued income |
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12 | Creditors: amounts falling due within one year | 2017 | 2016 | |||||
£ | £ | |||||||
Payments received on account | 1,515,670 | 1,227,112 | ||||||
Trade creditors |
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Corporation tax |
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Other taxes and social security costs |
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Other creditors |
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Accruals and deferred income |
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13 | Deferred taxation | 2017 | 2016 | |||||
£ | £ | |||||||
Accelerated capital allowances |
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2017 | 2016 | |||||||
£ | £ | |||||||
At 1 May |
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Charged to the profit and loss account |
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At 30 April |
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There are no unused tax losses or unused tax credits. The net deferred tax liability expected to reverse in 2016 is £12,033. This relates only to the reversal of timing differences on capital allowances as no further reversals are anticipated in respect of any other timing differences. |
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14 | Share capital | Nominal | 2017 | 2017 | 2016 | |||
value | Number | £ | £ | |||||
Allotted, called up and fully paid: | ||||||||
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£ |
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15 | Profit and loss account | 2017 | 2016 | |||||
£ | £ | |||||||
At 1 May |
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Profit for the financial year |
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Dividends | ( |
( |
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At 30 April |
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16 | Dividends | 2017 | 2016 | |||||
£ | £ | |||||||
Dividends on ordinary shares (note 15) |
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17 | Other financial commitments | |||||||
Total future minimum lease payments under non-cancellable operating leases: | ||||||||
Land and buildings | Land and buildings | Other | Other | |||||
2017 | 2016 | 2017 | 2016 | |||||
£ | £ | £ | £ | |||||
Falling due: | ||||||||
within one year |
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within two to five years | - | - | - |
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18 | Loans to director | |||||||
Included within other creditors is the following loan to the director: | ||||||||
Description and conditions | B/fwd | Paid | Repaid | C/fwd | ||||
£ | £ | £ | £ | |||||
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- |
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( |
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- | 523,500 | (523,500) | - | |||||
The above loan was unsecured, interest free and repayable on demand. | ||||||||
19 | Related party transactions | |||||||
The Issued Ordinary Share Capital is owned by the Ultimate Holding Company, TB Direct (Holdings) Limited being a Company in which Mr S Joel is the sole Shareholder. At the Balance Sheet date, the Company was owed an amount in the sum of £8,197 (2016 - £8,402) included within Trade Debtors from Prima Marble & Granite Limited, a Company in which Mr S Joel is a Director and Non-Controlling Shareholder and which is interest free and repayable on demand, as detailed in Note 11. At the Balance Sheet date, the Company was owed an amount in the sum of £12,212 (2016 - £9,139) from TB Direct (Holdings) Ltd, the Company's ultimate parent undertaking which has a common director and which is interest free and repayable on demand, as detailed in Note 11. At the Balance Sheet date, the Company was owed an amount in the sum of £166,194 (2016 - £166,220) from Topsy Turvy Designs Ltd, being a Company in which Mr S Joel is a Director and Shareholder and which is interest free and repayable on demand, as detailed in Note 11. |
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At the Balance Sheet date, the Company was owed an amount in the sum of £15,171 (2016 - £15,171) from Villa Estates Ltd, a Company in which Mr S Joel is a Director and Shareholder and which is interest free and repayable on demand, as detailed in Note 11. At the Balance Sheet date, the Company owed an amount in the sum of £8,490 (2016 - £8,904) included within Other Creditors to Prima Marble & Granite Limited, a Company in which Mr S Joel is a Director and Non-Controlling Shareholder and which is interest free and repayable on demand, as detailed in Note 12. |
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During the year the Company leased the business premises in the sum of £300,000 (2016 - £240,000) from Topsy Turvy Designs Limited. The business premises were then sub-leased to Prima Marble & Granite Limited in the sum of £92,135 (2016 - £92,284). The lease and sub-lease were signed on 3rd May 2005. During the year the Director rented car parks at the side and rear of the business premises to the Company in the total sum of £28,000 (2016 - £28,000) per annum. The car parks were then sub-rented to Prima Marble & Granite Limited in the sum of £13,000 (2016 - £13,000) per annum. Mr S Joel is also a Director and Shareholder of Prima Marble & Granite Limited. |
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20 | Controlling parties | |||||||
The ultimate controlling party is Mr S Joel. |
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21 | Presentation currency | |||||||
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22 | Legal form of entity and country of incorporation | |||||||
Tiles & Baths Direct Limited is a limited company incorporated in England. | ||||||||
23 | Principal place of business | |||||||
The address of the company's registered office is: | ||||||||
Churchill House | ||||||||
120 Bunns Lane | ||||||||
Mill Hill | ||||||||
London | ||||||||
NW7 2AS | ||||||||
24 | Transition to FRS 102 | |||||||
This is the second year that the company has presented its results under FRS 102. The last financial statements under the UK GAAP were for the year ended 30 April 2015. The date of transition to FRS 102 was 1 May 2014. Set out below are the changes in accounting policies which reconcile profit for the financial year ended 30 April 2015 and the total equity as at 1 May 2014 and 30 April 2015 between UK GAAP as previously reported and FRS 102. | ||||||||
A Holiday pay accrual FRS 102 requires short term employee benefits to be charged to the profit and loss account as the employee service is received. The company's holiday year runs from 1 January to the following 31 December. The company's policy on holiday entitlement is that any untaken holiday entitlement cannot be carried forward from one holiday year to the next, this has resulted in the company not recognising a liability for holiday pay on transition to FRS 102. |
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B Deferred taxation As a consequence of the company's policy on holiday entitlement this has resulted in the company not recognising deferred taxation in respect of holiday pay accruals on transition to FRS 102. The company has accounted for deferred taxation on transition to FRS 102 in respect of accelerated capital allowances. |
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C Statement of cash flows The company’s cash flow statement reflects the presentation requirements of FRS 102, which is different to that prepared under FRS 1. In addition the cash flow statement reconciles to cash and cash equivalents whereas under previous UK GAAP the cash flow statement reconciled to cash. Cash and cash equivalents are defined in FRS 102 as ‘cash on hand and demand deposits and short term highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value’ whereas cash is defined in FRS 1 as ‘cash in hand and deposits repayable on demand with any qualifying institution, less overdrafts from any qualifying institution repayable on demand’. The FRS 1 definition is more restrictive. |
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25 | Reconciliations on adoption of FRS 102 | |||||||
Profit and loss for the year ended 30 April 2016 | £ | |||||||
Profit under former UK GAAP | 1,009,278 | |||||||
Deferred tax provision on Accelerated Capital Allowances | (32,510) | |||||||
Profit under FRS 102 | 976,768 | |||||||
Balance sheet at 30 April 2016 | £ | |||||||
Equity under former UK GAAP | 180,029 | |||||||
Deferred tax provision on Accelerated Capital Allowances | (15,554) | |||||||
Equity under FRS 102 | 164,475 | |||||||
Balance sheet at 1 May 2015 | £ | |||||||
Equity under former UK GAAP | 1,450,574 | |||||||
Deferred tax provision on Accelerated Capital Allowances | 16,956 | |||||||
Equity under FRS 102 | 1,467,530 | |||||||