Investment property
In accordance with FRS 102 as applied for Smaller Entities by section 1A of the standard, investment properties
are held under the revaluation model, whereby revaluations are undertaken regularly to ensure that the carrying
amount does not materially differ from the fair value at the end of the period.
Any aggregate surplus or temporary deficit from the original cost is cumulated within equity in the revaluation
reserve and also reflected in other comprehensive income. Any impairment in the value of an investment
property from original cost is taken to the profit and loss account for the year.
On realisation any gain or loss is calculated by reference to the carrying value at the last balance sheet date and
is included in the profit and loss account. Any balance in the revaluation reserve is transferred to the profit and
loss account reserve.
No depreciation is provided in respect of freehold investment properties and leasehold investment properties
with over 20 years unexpired. FRS 102 requires all properties to be depreciated however the residual value of
such investment properties is considered not to be materially different from that of the carrying value and
therefore depreciation is not required.