Company Registration No. 05773268 (England and Wales)
SERENITY IN THE CITY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
PAGES FOR FILING WITH REGISTRAR
SERENITY IN THE CITY LIMITED
COMPANY INFORMATION
Directors
T P Maxfield
J Maxfield
Secretary
J Maxfield
Company number
05773268
Registered office
Flass Vale Hall
Crossgate Moor
Durham
DH1 4HR
Accountants
RMT Accountants & Business Advisors Ltd
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
SERENITY IN THE CITY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
SERENITY IN THE CITY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2016
31 December 2016
- 1 -
2016
2015
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
2
108,575
126,730
Investment properties
3
1,000,000
1,000,000
1,108,575
1,126,730
Current assets
Debtors
4
107,728
101,027
Cash at bank and in hand
34,902
13,228
142,630
114,255
Creditors: amounts falling due within one year
5
(26,157)
(5,471)
Net current assets
116,473
108,784
Total assets less current liabilities
1,225,048
1,235,514
Creditors: amounts falling due after more than one year
6
(1,434,173)
(1,480,012)
Net liabilities
(209,125)
(244,498)
Capital and reserves
Called up share capital
7
1,200,100
1,200,100
Profit and loss reserves
(1,409,225)
(1,444,598)
Total equity
(209,125)
(244,498)
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 31 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he 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.
SERENITY IN THE CITY LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2016
31 December 2016
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 26 September 2017 and are signed on its behalf by:
T P Maxfield
Director
Company Registration No. 05773268
SERENITY IN THE CITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
- 3 -
1
Accounting policies
Company information
Serenity In The City Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Flass Vale Hall, Crossgate Moor, Durham, DH1 4HR.
1.1
Accounting convention
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 a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.
Transition to FRS 102
These financial statements for the year ended 31 December 2016
are the
first
financial statements of Serenity In The City 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 1 January 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
1.2
Going concern
A
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable
for rents
provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
1.4
Tangible fixed assets
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:
Leasehold improvements
Over the period of the lease
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
.
SERENITY IN THE CITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 4 -
1.5
Investment properties
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 a
t
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.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
1.7
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand
.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
SERENITY IN THE CITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current 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
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.
1.11
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
SERENITY IN THE CITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 6 -
2
Tangible fixed assets
Leasehold improvements
£
Cost
At 1 January 2016 and 31 December 2016
272,322
Depreciation and impairment
At 1 January 2016
145,592
Depreciation charged in the year
18,155
At 31 December 2016
163,747
Carrying amount
At 31 December 2016
108,575
At 31 December 2015
126,730
3
Investment property
2016
£
Fair value
At 1 January 2016 and 31 December 2016
1,000,000
Investment property comprises of a premises in Newcastle upon Tyne. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 December 2016 by the director. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
4
Debtors
2016
2015
Amounts falling due within one year:
£
£
Amounts due from group undertakings
82,061
82,061
Other debtors
25,667
18,966
107,728
101,027
5
Creditors: amounts falling due within one year
2016
2015
£
£
Corporation tax
3,714
1,697
Other creditors
22,443
3,774
26,157
5,471
SERENITY IN THE CITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 7 -
6
Creditors: amounts falling due after more than one year
2016
2015
£
£
Other creditors
1,434,173
1,480,012
7
Called up share capital
2016
2015
£
£
Ordinary share capital
Issued and fully paid
1,200,100 Ordinary shares of £1 each
1,200,100
1,200,100
1,200,100
1,200,100
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2016
2015
£
£
Total lease commitments
36,866
35,166
9
Related party transactions
Included within other creditors falling due in more than one year is an amount of £1,434,173 (2015: £1,480,012) owed to a director. There are no set terms as to repayment or interest accrued thereon.
SERENITY IN THE CITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 8 -
10
Prior period adjustment
A prior year adjustment has been made in respect of a material error identified in the financial statements for the year ended 31 December 2014. Previously, freehold land and buildings has been held at historic cost of £1,397,635 within tangible fixed assets, however the land and buildings is an investment property and should be held at fair value.
The prior year adjustment has been made to reallocate freehold land and buildings from tangible fixed assets to investment properties. The fair of the property as at 31 December 2014 was £1,000,000. The impact of the adjustment has led to a reduction in opening reserves at 1 January 2015 of £397,635.
Changes to the balance sheet
At 31 December 2015
As previously reported
Adjustment at 1 Jan 2015
Adjustment at 31 Dec 2015
As restated
£
£
£
£
Fixed assets
Tangible assets
1,524,365
(1,397,635)
-
126,730
Investment properties
-
1,000,000
-
1,000,000
Net assets
153,137
(397,635)
-
(244,498)
Capital and reserves
Profit and loss
(1,046,963)
(397,635)
-
(1,444,598)