Elmbridge Building Control Services Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Civic Centre, High Street, Esher, Surrey, United Kingdom, KT10 9SD.
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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
Elmbridge Building Control Services Ltd has employees who were employees of Elmbridge Borough Council prior to the company's formation. Some of these employees are members of a multi employer Local Government Pension Scheme administered by Surrey County Council. Those employees who were members of the pension scheme under Elmbridge Borough Council have continued their membership whilst employed by Elmbridge Building Control Services Ltd.
The Surrey County Council pension scheme is a defined benefit scheme, however as a result of insufficient information in 2016 and 2017, for the purpose of the financial statements, the scheme had been accounted for as a defined contribution scheme.
In 2018, the company was able to obtain an actuarial report relating the assets and liabilities attributable to those employees. The information in the report gave the opening position as at 31st March 2017, movement during the year, and closing position as at 31st March 2018. The actuarial report showed a scheme deficit as at 31st March 2017 of £95,000.
In order to bring the schemes position into the financial statements, the opening deficit of £95,000 has been included as a prior period adjustment (shown within the Statement of Changes Equity).
The effect of this adjustment is to increase the defined benefit pension provision by £95,000 and decrease the profit and loss reserves by £95,000. Furthermore, as information relating to the movement of the defined benefit pension scheme for the year ending 31st March 2017 is not available, and during that year, pension contributions paid were accounted for under a defined contribution basis, the profit and loss account for the year ended 31st March 2017 is not entirely comparable.
Further information on the defined benefit scheme can be found in Note 6.
The financial statements have been prepared on a going concern basis. The net current liability position of £324,999 is primarily represented by deferred income of £502,439. This income will be recognised as the company completes the building inspection work this represents.
The cash flow cycle of the company is such that the company will be able to meet its liabilities as they fall due.
It is on this basis that the Directors have considered going concern and believe it to be appropriate.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods) , the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recover ed .
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 .
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.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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, 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.
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 10 (2017 - 10).