Company Registration No. SC633367 (Scotland)
THE BALERNO INN LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
THE BALERNO INN LTD
CONTENTS
Page
Accountants' Report
1
Balance Sheet
2 - 3
Notes to the Financial Statements
4 - 7
THE BALERNO INN LTD
REPORT TO THE DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY ACCOUNTS OF THE BALERNO INN LTD
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of The Balerno Inn Ltd for the year ended 30 June 2020 which comprise, the Balance Sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of I
CAS
we are subject to its ethical and other professional requirements which are detailed at
https://www.icas.com/professional-resources/practice/support-and-guidance/framework-for-the-preparation-of-accounts-revised-january-2017
.
This report is made solely to the Board of Directors of The Balerno Inn Ltd, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of The Balerno Inn Ltd and state those matters that we have agreed to state to the Board of Directors of The Balerno Inn Ltd, as a body, in this report in accordance with the requirements of ICAS as detailed at https://www.icas.com/professional-resources/practice/support-and-guidance/framework-for-the-preparation-of-accounts-revised-january-2017. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The Balerno Inn Ltd and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that The Balerno Inn Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets,
liabilities, financial position and profit
of The Balerno Inn Ltd. You consider that The Balerno Inn Ltd is exempt from the statutory audit
requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of The Balerno Inn Ltd. For this reason, we have not verified the accuracy or completeness of the
accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
IDS + Co
10 June 2021
Chartered Accountants
38 Beansburn
Kilmarnock
East Ayrshire
Scotland
KA3 1RL
THE BALERNO INN LTD
BALANCE SHEET
AS AT
30 JUNE 2020
30 June 2020
- 2 -
2020
Notes
£
£
Fixed assets
Tangible assets
3
15,355
Current assets
Stocks
3,100
Debtors
4
15,986
Cash at bank and in hand
99,290
118,376
Creditors: amounts falling due within one year
5
(122,923)
Net current liabilities
(4,547)
Total assets less current liabilities
10,808
Provisions for liabilities
(2,917)
Net assets
7,891
Capital and reserves
Called up share capital
6
2
Profit and loss reserves
7,889
Total equity
7,891
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 30 June 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 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.
THE BALERNO INN LTD
BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2020
30 June 2020
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 9 June 2021 and are signed on its behalf by:
Mr William Gorol
Mr Benjamin Watson
Director
Director
Company Registration No. SC633367
THE BALERNO INN LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
- 4 -
1
Accounting policies
Company information
The Balerno Inn Ltd is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
38 Beansburn, Kilmarnock, East Ayrshire, Scotland, KA3 1RL. The principal place of business is 15 Main Street, Balerno, Edinburgh, Lothian, Scotland, EH14 7EQ.
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 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.
1.2
Going concern
The financial statements at 30 June 2020 are reporting net current liabilities of £4,547. A
true
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 goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover is represented by the income from the restaurant and bar income.
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:
Fixtures and fittings
20% on cost
Computers
33% on cost
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
.
1.5
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.
THE BALERNO INN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 5 -
1.6
Stocks
Stocks are
valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
1.7
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractural arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.
1.8
Equity instruments
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.
1.9
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.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.11
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
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
s
asset are consumed.
THE BALERNO INN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 6 -
1.12
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
Number
Total
27
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 13 June 2019
Additions
17,498
At 30 June 2020
17,498
Depreciation and impairment
At 13 June 2019
Depreciation charged in the year
2,143
At 30 June 2020
2,143
Carrying amount
At 30 June 2020
15,355
4
Debtors
2020
Amounts falling due within one year:
£
Prepayments and accrued income
15,986
THE BALERNO INN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 7 -
5
Creditors: amounts falling due within one year
2020
£
Trade creditors
11,432
Amounts owed to group undertakings
35,522
Corporation tax
464
Other taxation and social security
26,113
Other creditors
11,527
Accruals and deferred income
37,865
122,923
6
Called up share capital
2020
£
Ordinary share capital
Issued and fully paid
2 Ordinary of £1 each
2
On 13 June 2019 2 £1 Ordinary shares were issued and paid at par.
7
Operating lease commitments
Lessee
The company has a lease on the property and rentals are based on a percentage of sales.
8
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Balerno Holdings Ltd own the property and assets of the company. During the year recharges were invoiced totalling £66,518, including £15,208 of rent. As at 30 June 2020 the total due to be paid to Balerno Holdings Ltd was £35,522.
9
Directors' transactions
During the year the director, W Gorol loaned £4,333 to the company. The director does not seek repayment of this loan within any time limit. No interest is being charged on this loan balance.