Financial Lifetime Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Norwest Court, Guildhall Street, Preston, PR1 3NU.
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. The principal accounting policies adopted are set out below.
A t the time of approving the financial statements , t he directors have a reasonable expectation that the company will receive adequate resources from its parent company, to continue in operational existence for the foreseeable future. The company is reliant upon the support of its parent company. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
In the prior period the company changed its year end to 31 December and as a result the prior year accounts reflect an 18 month period and are not comparable to the comparative amounts for the current year ended 2018 which represents a 12 month period.
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.
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.
Basic financial liabilities, including creditors and loans from fellow group companies 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.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
The average monthly number of persons (including directors) employed by the company during the year was 6 (2017 - 52).
The company is party to cross-company security arrangements in relation to a loan included in its parent company accounts, of £2,480,178. The loan is secured by way of a fixed and floating charge over all the company's assets and the assets of both subsidiary companies.
During the year £147,695 (2017: £373,028) was paid to a fellow subsidiary for management services provided. At the balance sheet date the company owed the sum of £81,102 (2017: £560,720) to a fellow subsidiary.
At the balance sheet date the company owed £5,430,000 (2017: £4,280,000) to its immediate parent company, in relation to a working capital loan.