Registered number:
09406739
MSN 24471 LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
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MSN 24471 LTD
COMPANY INFORMATION
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W J Flynn
(resigned
17 March 2017
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A P Jackson
(appointed
17 March 2017
, resigned
31 July 2017
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E Proud
(appointed
17 March 2017
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J Andriof
(appointed
4 May 2018
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Bird & Bird Company Secretaries Limited
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Chartered Accountants
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Statutory Auditors
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MSN 24471 LTD
CONTENTS
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Notes to the Financial Statements
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MSN 24471 LTD
REGISTERED NUMBER:
09406739
BALANCE SHEET
AS AT
31 DECEMBER 2017
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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The
financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
Page 1
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MSN 24471 LTD
REGISTERED NUMBER:
09406739
BALANCE SHEET
(CONTINUED)
AS AT
31 DECEMBER 2017
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
10 July 2018
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E Proud
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The notes on pages 3 to 10 form part of these financial statements.
Page 2
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MSN 24471 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
MSN 24471 Ltd is a private company limited by shares (company number 09406739). The Company's principal activity is the leasing of an aircraft.
The Company is incorporated and domicled in the United Kingdom. The registered address and trading address is 12 New Fetter Lane, London, United Kingdom, EC4A 1JP.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The Company is profitable and in a position of positive equity. Revenue is guaranteed at its current level for at least the next 12 months per the extended leasing agreement. Based on the above, the directors believe that the Company will be able to meet its liabilities as and when they fall due and therefore the use of the going concern basis is appropriate.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable net of discounts and rebates allowed by the Company and value added tax.
Rental income from operating leases is credited to the Statement of Comprehensive Income on a straight line basis over the term of the relevant lease.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Page 3
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MSN 24471 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
2.
Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
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40 years from the date of manufacture
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
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MSN 24471 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
2.
Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is US Dollars.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income
except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'other operating income'.
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
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MSN 24471 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
2.
Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
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The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
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Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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In the application of the Company's accounting policies, the management of the Company is required to make judgements, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The estimates and associated assumptions are based on historical experience and other factors considered to be relevant. Actual results may differ from those estimates and the estimates and underlying assumptions are continually reviewed.
Key sources of estimation uncertainty
Any variation in the useful economic life or residual value of the aircraft held in tangible fixed assets will have an impact on both the balance sheet and the in-year financial position of the Company. In the year, the Company has changed the useful economic life of the aircraft from the end of the lease to 40 years from the date of the aircraft's manufacture and the residual value has been estimated on a scrap value rather than a resale value.
At each reporting date the Company assesses whether there is any indication of impairment to the value of tangible fixed assets. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. No impairment charge has been reported in the current financial year.
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The average monthly number of employees, including directors, during the year was 1
(2016 -
3
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Page 6
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MSN 24471 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
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Charge for the year on owned assets
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Page 7
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MSN 24471 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
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Called up share capital not paid
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Accruals and deferred income
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Page 8
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MSN 24471 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
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Financial assets measured at fair value through profit or loss
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Financial liabilities measured at amortised cost
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Basic financial assets measured at amortised cost comprise cash and cash equivalents.
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Basic financial liabilities measured at amortised cost comprise other creditors.
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Page 9
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MSN 24471 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
Other reserves
Other reserves consist of a capital contribution from parent company AAWW International 2 Inc. which has been reduced by $2.2m in the year by way of a dividend payment.
Profit and loss account
The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.
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Related party transactions
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The Company is exempt from disclosing related party transactions as the tranasactions are with companies that are wholly owned within the same group.
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The Company is a wholly owned subsidiary of AAWW International 2 Inc., a company registered in the British Virgin Islands. The ultimate controlling party is Atlas Air Worldwide Holdings, Inc., a company incorporated in Delaware.
The Company is exempt from the obligation to prepare and deliver group accounts of a large group because it is included in non-EEA group accounts of a larger group.
The auditors' report on the financial statements for the year ended 31 December 2017 was unqualified.
The audit report was signed on
10 July 2018
by
Mr F M E Shippam BSc FCA DChA
(Senior Statutory Auditor) on behalf of
MA Partners LLP
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