Registration number:
Abbott and Sons Cars Ltd
for the Year Ended 31 December 2016
Abbott and Sons Cars Ltd
Contents
Company Information |
|
Accountants' Report |
|
Abridged Balance Sheet |
|
Notes to the Abridged Financial Statements |
Abbott and Sons Cars Ltd
Company Information
Director |
Mr Martin Poore |
Registered office |
|
Accountants |
|
Page 1 |
Chartered Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
Abbott and Sons Cars Ltd
for the Year Ended 31 December 2016
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Abbott and Sons Cars Ltd for the year ended 31 December 2016 as set out on pages 3 to 10 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance/.
This report is made solely to the Board of Directors of Abbott and Sons Cars 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 accounts of Abbott and Sons Cars Ltd and state those matters that we have agreed to state to the Board of Directors of Abbott and Sons Cars Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Abbott and Sons Cars Ltd and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Abbott and Sons Cars Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of Abbott and Sons Cars Ltd. You consider that Abbott and Sons Cars 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 accounts of Abbott and Sons Cars 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 accounts.
......................................
Chartered Accountants and Chartered Tax Advisers
Stanford Gate
South Road
Brighton
East Sussex
BN1 6SB
Page 2 |
Abbott and Sons Cars Ltd
(Registration number: 07738896)
Abridged Balance Sheet as at 31 December 2016
Note |
2016 |
2015 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Prepayments and accrued income |
|
|
|
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Accruals and deferred income |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Page 3 |
Abbott and Sons Cars Ltd
(Registration number: 07738896)
Abridged Balance Sheet as at 31 December 2016
For the financial year ending 31 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
• |
|
• |
The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
All of the company’s members have consented to the preparation of an Abridged Balance Sheet in accordance with Section 444(2A) of the Companies Act 2006.
Approved and authorised by the
.........................................
Mr Martin Poore
Director
Page 4 |
Abbott and Sons Cars Ltd
Notes to the Abridged Financial Statements for the Year Ended 31 December 2016
General information |
The company is a private company limited by share capital incorporated in England.
The address of its registered office is:
The principal place of business is:
330-336 South Coast Road
Peacehaven
BN10 7EN
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These abridged financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These abridged financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures, fittings and equipment |
25% reducing balance |
Motor vehicles |
25% reducing balance |
Office equipment |
33% straight line |
Page 5 |
Abbott and Sons Cars Ltd
Notes to the Abridged Financial Statements for the Year Ended 31 December 2016
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
Useful economic life of 10 years |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Page 6 |
Abbott and Sons Cars Ltd
Notes to the Abridged Financial Statements for the Year Ended 31 December 2016
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Page 7 |
Abbott and Sons Cars Ltd
Notes to the Abridged Financial Statements for the Year Ended 31 December 2016
Intangible assets |
Total |
|
Cost or valuation |
|
At 1 January 2016 |
|
At 31 December 2016 |
|
Amortisation |
|
At 1 January 2016 |
|
Amortisation charge |
|
At 31 December 2016 |
|
Carrying amount |
|
At 31 December 2016 |
|
At 31 December 2015 |
|
Tangible assets |
Total |
|
Cost or valuation |
|
At 1 January 2016 |
|
Additions |
|
At 31 December 2016 |
|
Depreciation |
|
At 1 January 2016 |
|
Charge for the year |
|
At 31 December 2016 |
|
Carrying amount |
|
At 31 December 2016 |
|
At 31 December 2015 |
|
Stocks |
2016 |
2015 |
|
Finished goods and goods for resale |
|
|
Page 8 |
Abbott and Sons Cars Ltd
Notes to the Abridged Financial Statements for the Year Ended 31 December 2016
Dividends |
2016 |
2015 |
|
£ |
£ |
|
Interim dividend of £
|
30,000 |
20,000 |
Related party transactions |
Transactions with directors |
2016 |
At 1 January 2016 |
Advances to directors |
Repayments by director |
At 31 December 2016 |
Mr Martin Poore |
||||
Interest free loan, repayable on demand |
203 |
( |
|
|
2015 |
At 1 January 2015 |
Advances to directors |
Repayments by director |
At 31 December 2015 |
Mr Martin Poore |
||||
Interest free loan, repayable on demand |
(28,454) |
( |
|
|
Dividends paid to directors |
2016 |
2015 |
|||
|
||||
Interim dividends |
30,000 |
20,000 |
||
Page 9 |
Abbott and Sons Cars Ltd
Notes to the Abridged Financial Statements for the Year Ended 31 December 2016
All Seasons Motorhomes Ltd
(M Poore is director and shareholder)
During the year the further advances were made to All Seasons Motorhomes Limited which ultimately ceased to trade during the year and has now dissolved with an inability to repay this debt to the company. The final balance of £39,732 owed from All Seasons Motorhomes Limited has been written off and is included in exceptional items on the profit and loss account.
Abbott and Sons Garage Services
(M Poore is proprietor)
The company traded on commercial terms with the business. The company purchased goods to the value of £17,413 during the year in addition to advancing the business a loan. At the balance sheet date £11,017 was owed to the company.
The Car Wash
(M Poore is a partner)
During the year the company loaned money to the partnership. At the balance sheet date £2,465 was owed to the company.
Transition to FRS 102 |
Page 10 |