Company Registration No. IP10126R (England and Wales)
CANFORD CLIFFS LAND SOCIETY LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019 CANFORD CLIFFS LAND SOCIETY LIMITED
COMMITTEE OF MANAGEMENT RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2019
The Committee of Management are responsible for preparing the annual report and the financial stat ements in accordance with applicable law and regulations.
The Committee of Management are required to prepare financial statements for each financial year i n accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the society and of its excess or deficit of income over expenditure for that per iod. In preparing these financial statements, the Committee of Management are required to:
select suitable accounting policies and then apply them consistently; make judgements and accounting estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the society will continue in business.
The Committee of Management are responsible for maintaining satisfactory systems of internal contr ol and keeping proper accounting records that disclose with reasonable accuracy at any time the financial p osition of the company and enable them to ensure that the financial statements comply with the Co-operative and Community Benefit Societies Act 2014. They are also responsible for safeguarding the assets of the society and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Mr P Dawes Committee Member
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CANFORD CLIFFS LAND SOCIETY LIMITED
Opinion We have audited the financial statements of Canford Cliffs Land Society Limited (the 'society ') for the year ended 31 December 2019 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial state ments, including a summary of significant accounting policies. The financial reporting framework th at has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Ge nerally Accepted Accounting Practice).
In our opinion the financial statements: give a true and fair view of the state of the society's affairs as at 31 December 2019 and of its income and expenditure for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi ce; and have been prepared in accordance with the requirements of the Co-operative and Community Benefit Societies Act 2014.
Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsib ilities for the audit of the financial statements section of our report. We are independent of the society in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 7 to the financial statements and we have fulfilled our other ethical responsibilities in accordance with the se requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to p rovide a basis for our opinion.
Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: the Committee's use of the going concern basis of accounting in the preparation of the fin ancial statements is not appropriate; or the Committee has not disclosed in the financial statements any identified material uncert ainties that may cast significant doubt about the society's ability to continue to adopt the going concern ba sis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information The other information comprises the information included in the annual report, other than the fina ncial statements and our auditor's report thereon. The Committee is responsible for the other information.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial state ments or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, ba sed on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CANFORD CLIFFS LAND SOCIETY LIMITED
Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Co-operativ e and Community Benefit Societies Act 2014 requires us to report to you if, in our opinion:
a satisfactory system of control over transactions has not been maintained; or the society has not kept proper accounting records; or the financial statements are not in agreement with the books of account; or we have not received all the information and explanations we require for our audit.
Responsibilities of the Committee As explained more fully in the Committee of Management responsibilities statement, the Committee is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Committee determine is necessary to enable the pr eparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Committee is responsible for assessing the society's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Committee either intend to liquidate the society or to cease operations, or ha ve no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whol e are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that inc ludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit con ducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements c an arise from fraud or error and are considered material if, individually or in the aggregate, they could rea sonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This descrip tion forms part of our auditor’s report.
Use of our report
This report is made solely to the society, in accordance with Section 87 of the Co-operative and C ommunity Benefit Societies Act 2014. Our audit work has been undertaken so that we might state to the societ y those matters we are required to state to it in an auditor's report and for no other purpose. To the full est extent permitted by law, we do not accept or assume responsibility to anyone other than the society, for ou r audit work, for this report, or for the opinions we have formed.
Roger Morris (Senior Statutory Auditor) for and on behalf of Morris Lane 19 March 2020
Chartered Accountants Statutory Auditor 31/33 Commercial Road Poole Dorset BH14 0HU
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INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2019
2019 2018 Notes £ £
Revenue 2,687 46,839 Administrative expenses (28,791) (24,087) Other operating income 900 900
Operating profit (loss) 2 (25,204) 23,652
Investment income 4,126 3,455
Profit (loss) before taxation (21,078) 27,107
Tax on profit (loss) - (7,681)
Profit (loss) for the financial year (21,078) 19,426
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STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019
2019 2018 £ £
Profit (loss) for the year (21,078) 19,426
Other comprehensive income --
Total comprehensive income for the year (21,078) 19,426
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STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019
2019 2018 Notes £ £ £ £
Fixed assets Property, plant and equipment 3 2,580 1,281
Current assets Trade and other receivables 4 214 251 Cash at bank and in hand 367,026 389,049
367,240 389,300 Current liabilities 5 (120,360) (120,039)
Net current assets 246,880 269,261
Total assets less current liabilities 249,460 270,542
Equity Called up share capital 6 105 109 Retained earnings 249,355 270,433
Total equity 249,460 270,542
These financial statements have been prepared in accordance with the provisions applicable to comp anies subject to the small companies regime.
The financial statements were approved by the Committee of Management and authorised for issue on 9 March 2020
Mr P Dawes Committee Member
Mr G Perrins Committee Member
Mr M Calvert Honorary Secretary
Company Registration No. IP10126R
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STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2019
Share Retained Total capital earnings £ £ £
Balance at 1 January 2018 111 251,007 251,118
Year ended 31 December 2018: Profit and total comprehensive income for the year - 19,426 19,426 Other movements (2) - (2)
Balance at 31 December 2018 109 270,433 270,542
Year ended 31 December 2019: Loss and total comprehensive income for the year - (21,078) (21,078) Other movements (4) - (4)
Balance at 31 December 2019 105 249,355 249,460
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019
1 Accounting policies
Company information Canford Cliffs Land Society Limited is a private company limited by shares incorpo rated in England and Wales and is registered by the Financial Conduct Authority under the Co-operative and Community Bene fit Societies Act 2014. The registered office is 31-33 Commercial Road, Poole, Dorset, BH14 0HU .
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 Co- operative and Community Benefit Societies Act 2014. 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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to incl ude the revaluation of freehold properties and to include investment properties and certain financial instru ments at fair value. The principal accounting policies adopted are set out below.
1.2 Revenue Turnover is derived from Members' subscriptions and contributions, rent receivable and fees in res pect of plans.
1.3 Property, plant and equipment Property, plant and equipment 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:
Freehold land not depreciated Fee simple 5 years straight line Fixtures, fittings and equipment 5 years straight line
Freehold land and assets in the course of construction are not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the s ale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4 Impairment of non-current 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 individu al asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2019
1 Accounting policies (Continued)
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing v alue in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset f or which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its c arrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amo unt. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss hav e ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (o r cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that th e increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A re versal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.5 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 ban k overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6 Financial instruments The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Se ction 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the com pany becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transacti on, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities Financial liabilities and equity instruments are classified according to the substance of the cont ractual arrangements entered into. An equity instrument is any contract that evidences a residual interest i n the assets of the company after deducting all of its liabilities.
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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2019
1 Accounting policies (Continued)
Basic financial liabilities Basic financial liabilities, including trade and other payables, bank loans, loans from fe llow group companies and preference shares that are classified as debt, are initially recognised at tra nsaction price unless the arrangement constitutes a financing transaction, where the debt instrument is mea sured at the present value of the future payments discounted at a market rate of interest. Financial liabilities class ified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7 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.
1.8 Derivatives Derivatives are initially recognised at fair value at the date a derivative contract is entered in to and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is reco gnised in profit or loss immediately unless the derivative is designated and effective as a hedging instrum ent, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relat ionship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative w ith a negative fair value is recognised as a financial liability.
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 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 asse ts are recognised to the extent that it is probable that they will be recovered against the reversal of def erred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the t iming 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 t he 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 i ncome 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 liabi lities relate to taxes levied by the same tax authority.
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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2019
1 Accounting policies (Continued)
1.10 Leases Rental income from operating leases is recognised on a straight line basis over the term of the re levant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to th e carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2 Operating profit (loss) 2019 2018 Operating profit (loss) for the year is stated after charging (crediting): £ £
Fees payable to the society's auditor for the prepation and audit of the society's financial statements 1,866 1,710
3 Property, plant and equipment Freehold land Fee simple Fixtures, Total fittings and equipment £ £ £ £ Cost At 1 January 2019 40 1 3,101 3,142 Additions - - 2,399 2,399
At 31 December 2019 40 1 5,500 5,541
Depreciation and impairment At 1 January 2019 - 1 1,860 1,861 Depreciation charged in the year - - 1,100 1,100
At 31 December 2019 - 1 2,960 2,961
Carrying amount At 31 December 2019 40 - 2,540 2,580
At 31 December 2018 40 - 1,241 1,281
4 Trade and other receivables 2019 2018 Amounts falling due within one year: £ £
Prepayments and accrued income 214 251
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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2019
5 Current liabilities 2019 2018 £ £
Corporation tax 117,918 117,999 Accruals and deferred income 2,442 2,040
120,360 120,039
6 Called up share capital 2019 2018 £ £ Ordinary share capital Issued and fully paid 105 Ordinary of £1 each 105 109
The holder of each ordinary share is entitled to one vote at General Meetings of the society and t o capital distributions.
7 Non-audit services provided by auditor
In common with many businesses of our size and nature we use our auditor to prepare and submit ret urns to the tax authorities and assist with the preparation of the financial statements.
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DETAILED TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2019
2019 2018 £ £ £ £ Revenue Fees in respect of plans - 40,000 Members subscriptions and contributions 516 542 Christmas lights and flowers 2,171 2,547 Other income - 3,750
2,687 46,839
Other operating income Rent receivable 900 900 Administrative expenses (28,791) (24,087)
Operating (loss)/profit (25,204) 23,652
Investment revenues Bank interest received 4,126 3,455
4,126 3,455
(Loss)/profit before taxation (21,078) 27,107 CANFORD CLIFFS LAND SOCIETY LIMITED
SCHEDULE OF ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED 31 DECEMBER 2019
2019 2018 £ £ Administrative expenses Bessborough Road maintenance - 200 Insurance 337 311 Professional subscriptions 102 306 Legal and professional fees 336 461 Accountancy and audit 1,866 1,710 Charitable donations 10,250 10,250 Zig Zag Path Development 4,247 851 Sundry and meeting expenses 2,880 1,142 Christmas lights running expenses 7,389 7,093 Pocket Park and village notice board and flowers 284 1,143 Depreciation 1,100 620
28,791 24,087