Company Registration No. SC364839 (Scotland)
Forsyth Floorings Ltd.
Unaudited financial statements
for the year ended 31 August 2019
Pages for filing with registrar
Forsyth Floorings Ltd.
Chartered Accountants' Report to the board of directors on the preparation of the
unaudited statutory financial statements of Forsyth Floorings 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 Forsyth Floorings Ltd. for the year ended 31 August 2019 which comprise, the Statement Of Financial Position 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 the Institute of Chartered Accountants of Scotland we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/technical-resources/framework-for-the-preparation-of-accounts-revised-january-2017.
This report is made solely to the Board of Directors of Forsyth Floorings Ltd., as a body, in accordance with the terms of our engagement letter dated 7 January 2015. Our work has been undertaken solely to prepare for your approval the financial statements of Forsyth Floorings Ltd. and state those matters that we have agreed to state to the Board of Directors of Forsyth Floorings Ltd., as a body, in this report in accordance with the requirements of the Institute of Chartered Accountants of Scotland as detailed at http://www.icas.com/technical-resources/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 Forsyth Floorings Ltd. and its Board of Directors
,
as a body, for our work or for this report.
It is your duty to ensure that Forsyth Floorings 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 Forsyth Floorings Ltd.. You consider that Forsyth Floorings 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 Forsyth Floorings 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.
James Milne
Chartered Accountants
5 High Street
Inverurie
AB51 3QA
4 March 2020
Forsyth Floorings Ltd.
Statement of financial position
at 31 August 2019
2
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
2
-
1,000
Tangible assets
3
21,960
17,031
21,960
18,031
Current assets
Stocks
3,567
3,956
Debtors
46,222
19,868
Cash at bank and in hand
84,957
84,101
134,746
107,925
Creditors: amounts falling due within one year
(62,717)
(88,914)
Net current assets
72,029
19,011
Total assets less current liabilities
93,989
37,042
Provisions for liabilities
(4,173)
(3,236)
Net assets
89,816
33,806
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
89,716
33,706
Total equity
89,816
33,806
Forsyth Floorings Ltd.
Statement of financial position (continued)
at 31 August 2019
3
In accordance with section 444 of the Companies Act 2006 all
of
the members of the company have consented to the
preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (S.I. 2008/409)(b).
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 31 August 2019 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 financial statements were approved by the board of directors and authorised for issue on 2 March 2020 and are signed on its behalf by:
Brian C. Forsyth
Director
Company Registration No. SC364839
Forsyth Floorings Ltd.
Notes to the financial statements
for the year ended 31 August 2019
4
1
Accounting policies
Company information
Forsyth Floorings Ltd. is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
75a George Street, Huntly, Aberdeenshire, AB54 8HJ.
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.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
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.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 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.
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 equipment
15% reducing balance
Fixtures and fittings
33% straight line
Motor vehicles
25% 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
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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.
Forsyth Floorings Ltd.
Notes to the financial statements (continued)
for the year ended 31 August 2019
1
Accounting policies (continued)
5
1.6
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.
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.
1.7
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 income statement 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 income statement, 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.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Forsyth Floorings Ltd.
Notes to the financial statements (continued)
for the year ended 31 August 2019
6
2
Intangible fixed assets
Total
£
Cost
At 1 September 2018 and 31 August 2019
10,000
Amortisation and impairment
At 1 September 2018
9,000
Amortisation charged for the year
1,000
At 31 August 2019
10,000
Carrying amount
At 31 August 2019
-
At 31 August 2018
1,000
3
Tangible fixed assets
Total
£
Cost
At 1 September 2018
37,478
Additions
18,548
Disposals
(15,270)
At 31 August 2019
40,756
Depreciation and impairment
At 1 September 2018
20,447
Depreciation charged in the year
7,181
Eliminated in respect of disposals
(8,832)
At 31 August 2019
18,796
Carrying amount
At 31 August 2019
21,960
At 31 August 2018
17,031
Forsyth Floorings Ltd.
Notes to the financial statements (continued)
for the year ended 31 August 2019
7
4
Directors' transactions
During the year the directors entered into the following advances and credits with the company:
Description
Opening credit balance
Amounts advanced
Amounts credited
Closing credit balance
£
£
£
£
Brian C. Forsyth - director's loan
35,809
(40,365)
20,020
15,464
Anne G. Forsyth - director's loan
34,359
(40,000)
20,020
14,379
70,168
(80,365)
40,040
29,843
5
Controlling party
Brian C. Forsyth and Anne G. Forsyth, directors, control the company by virtue of a controlling interest of 100% of the issued ordinary share capital.