Company Registration No. SC351857 (Scotland)
ASHERS ICE CREAM LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
PAGES FOR FILING WITH REGISTRAR
ASHERS ICE CREAM LIMITED
COMPANY INFORMATION
Directors
Mr Wilson Asher
Mr Leslie Asher
Mrs Evelyn Loch
Secretary
Mr Wilson Asher
Company number
SC351857
Registered office
156 Drip Road
Stirling
Stirlingshire
United Kingdom
FK8 1RR
Accountants
French Duncan LLP
Macfarlane Gray House
Castlecraig Business Park
Springbank Road
Stirling
Scotland
FK7 7WT
ASHERS ICE CREAM LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
ASHERS ICE CREAM LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2016
31 December 2016
- 1 -
2016
2015
Notes
£
£
£
£
Fixed assets
Goodwill
3
20,000
30,000
Tangible assets
4
92,494
71,365
112,494
101,365
Current assets
Stocks
4,053
2,065
Debtors
5
1,730
1,545
Cash at bank and in hand
96,770
110,240
102,553
113,850
Creditors: amounts falling due within one year
6
(122,287)
(154,067)
Net current liabilities
(19,734)
(40,217)
Total assets less current liabilities
92,760
61,148
Provisions for liabilities
(16,649)
(12,846)
Net assets
76,111
48,302
Capital and reserves
Called up share capital
7
100
100
Profit and loss reserves
76,011
48,202
Total equity
76,111
48,302
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
ASHERS ICE CREAM LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2016
31 December 2016
- 2 -
For the financial year ended 31 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
T he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
he directors acknowledge their responsibilities for complying with the requirements of the Act 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 .
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 financial statements were approved by the board of directors and authorised for issue on 16 May 2017 and are signed on its behalf by:
Mr Wilson Asher
Mr Leslie Asher
Mrs Evelyn Loch
Director
Director
Director
Company Registration No. SC351857
ASHERS ICE CREAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
- 3 -
1
Accounting policies
Company information
Ashers Ice Cream Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
156 Drip Road, Stirling, Stirlingshire, United Kingdom, FK8 1RR.
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.
These financial statements for the year ended 31 December 2016
are the
first
financial statements of Ashers Ice Cream Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 January 2015. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 8.
1.2
Turnover
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods rendered, stated net of discounts and of Value Added Tax.
is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods rendered, stated net of discounts and of Value Added Tax.
1.3
Intangible fixed assets - goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2009, is being amortised evenly over its estimated useful life of ten years.
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.
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:
Plant and machinery
25% on Reducing Balance
Fixtures and fittings
25% on Reducing Balance
Motor vehicles
25% on Reducing Balance
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
.
ASHERS ICE CREAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 4 -
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The following assets and liabilities are classified as financial instruments - trade debtors, trade creditors and directors' loan. Directors' loans (being repayable on demand), trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. Financial assets that are measured at amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.
Directors' loans (being repayable on demand), trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.
Financial assets that are measured at amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue 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.
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
ASHERS ICE CREAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 5 -
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.
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. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 5 (2015 - 5).
ASHERS ICE CREAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 6 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2016 and 31 December 2016
100,000
Amortisation and impairment
At 1 January 2016
70,000
Amortisation charged for the year
10,000
At 31 December 2016
80,000
Carrying amount
At 31 December 2016
20,000
At 31 December 2015
30,000
4
Tangible fixed assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2016
9,619
3,686
193,483
206,788
Additions
3,970
-
48,845
52,815
Disposals
(1,565)
(207)
(4,654)
(6,426)
At 31 December 2016
12,024
3,479
237,674
253,177
Depreciation and impairment
At 1 January 2016
5,956
2,221
127,246
135,423
Depreciation charged in the year
1,856
359
28,615
30,830
Eliminated in respect of disposals
(1,357)
(180)
(4,033)
(5,570)
At 31 December 2016
6,455
2,400
151,828
160,683
Carrying amount
At 31 December 2016
5,569
1,079
85,846
92,494
At 31 December 2015
3,663
1,465
66,237
71,365
5
Debtors
2016
2015
Amounts falling due within one year:
£
£
Other debtors
1,730
1,545
ASHERS ICE CREAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 7 -
6
Creditors: amounts falling due within one year
2016
2015
£
£
Trade creditors
-
12
Corporation tax
20,743
17,390
Other taxation and social security
-
7,840
Other creditors
101,544
128,825
122,287
154,067
7
Called up share capital
2016
2015
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary of £1 each
100
100
8
Reconciliations on adoption of FRS 102
Reconciliation of equity
At 1 January 2015
At 31 December 2015
Previous UK GAAP
Effect of
transition
FRS 102
Previous UK GAAP
Effect of
transition
FRS 102
Notes
£
£
£
£
£
£
Fixed assets
Goodwill
40,000
-
40,000
30,000
-
30,000
Tangible assets
93,136
-
93,136
71,365
-
71,365
133,136
-
133,136
101,365
-
101,365
Current assets
Stocks
3,653
-
3,653
2,065
-
2,065
Debtors
4,310
-
4,310
1,545
-
1,545
Bank and cash
94,946
-
94,946
110,240
-
110,240
102,909
-
102,909
113,850
-
113,850
Creditors due within one year
Loans and overdrafts
(128,813)
-
(128,813)
(125,525)
-
(125,525)
Taxation
(27,615)
-
(27,615)
(25,230)
-
(25,230)
Other creditors
(3,308)
-
(3,308)
(3,312)
-
(3,312)
(159,736)
-
(159,736)
(154,067)
-
(154,067)
Net current liabilities
(56,827)
-
(56,827)
(40,217)
-
(40,217)
Total assets less current liabilities
76,309
-
76,309
61,148
-
61,148
ASHERS ICE CREAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
8
Reconciliations on adoption of FRS 102
At 1 January 2015
At 31 December 2015
Previous UK GAAP
Effect of
transition
FRS 102
Previous UK GAAP
Effect of
transition
FRS 102
Notes
£
£
£
£
£
£
(Continued)
- 8 -
Provisions for liabilities
Deferred tax
1
-
-
-
-
(12,846)
(12,846)
Net assets
76,309
-
76,309
61,148
(12,846)
48,302
Capital and reserves
Share capital
100
-
100
100
-
100
Profit and loss
76,209
-
76,209
61,048
(12,846)
48,202
Total equity
76,309
-
76,309
61,148
(12,846)
48,302
Reconciliation of profit for the financial period
Year ended 31 December 2015
Previous UK GAAP
Effect of
transition
FRS 102
Notes
£
£
£
Turnover
518,943
-
518,943
Cost of sales
(258,186)
-
(258,186)
Gross profit
260,757
-
260,757
Administrative expenses
(208,900)
-
(208,900)
Interest receivable and similar income
372
-
372
Taxation
1
(17,390)
(12,846)
(30,236)
Profit for the financial period
34,839
(12,846)
21,993
Notes to reconciliations on adoption of FRS 102
1. Recognition of deferred tax
FRS 102 requires the company to recognise all material timing differences in relation to capital allowances.