DRAFT EASTBOURNE & DISTRICT CHAMBER OF COMMERCE LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016

Transcription

1 Company Registration No (England and Wales) EASTBOURNE & DISTRICT CHAMBER OF COMMERCE LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS

2 COMPANY INFORMATION Directors Company number Registered office Auditor Business address J Banks N C Beckhurst M McFadden R M W Naylor W J Plumridge A Rainer Jones A Pugh N Fisher T Cobb S Pierce D L Godfrey M Ogilvie M Gietzen L Salway Mrs R Stone Mrs C Westbrey-Tong P Mills (Appointed 28 July 2016) 7 Hyde Gardens Eastbourne East Sussex BN21 4PN Price & Company Gildredge Road Eastbourne East Sussex BN21 4SH 7 Hyde Gardens Eastbourne East Sussex BN21 4PN

3 CONTENTS Page Directors' report 1-2 Directors' responsibilities statement 3 Independent auditor's report 4-5 Income and expenditure account 6 Balance sheet 7 Statement of changes in equity 8 Notes to the financial statements 9-19

4 DIRECTORS' REPORT The directors present their annual report and financial statements for the year ended 31 December Principal activities The principal activity of the company is to promote the businesses of its members through a range of services and events. Fair review of the business 2016 was an expensive year for the Chamber and for its sister company Edeal as we carried out much needed repairs and refurbishment to the property at 7 Hyde Gardens. The work included; replacing flat roof coverings and fire walls with Decathane; replacing loose render and redecorating the exterior both on the front and rear of the building. We also carried out remedial works to remove damp ingress in the basement of the building. Fortunately we were able to balance these expenses with a 5% increase in overall membership so that we remain the largest town chamber in the South East. There have been other successes during the year that should be acknowledged. For example, we have doubled the number of member referrals and so new member numbers are up 33% from 104 in 2015 to 138 in Special Members Evenings have been introduced to integrate new members into the Chamber. Walking into a room full of existing members can be daunting for a new member so we have introduced two tier Members Evenings to allow new members to meet each other before meeting our existing members. These events also give new and existing members the opportunity to promote their business activity to each other. We have also introduced an innovative new pricing structure to help smaller members to take advantage of Premier Membership. This new sliding scale led to a 20% increase in Premier Members in We are pleased to report that the Chamber passed another annual ISO Audit with flying colours. This is largely due to the excellent work of our Administration and Contracts Manager, Sandra Walker. Our Town Centre and Market Supervisor, Luke Johnson won the Employee of the Year Award at the Eastbourne Business Awards after we received 12 letters of commendation about him, including letters from Caroline Ansell MP and the Leader of Eastbourne Borough Council, David Tutt. Christmas 2016 in Eastbourne was very busy as we generated 35,000 people visiting the Christmas Market and 25,000 people watching the Neon Noel light show over 9 days. The Coca Cola truck revisited Eastbourne town centre for the second year running which is most unusual - and it attracted over 10,000 visitors. Marks & Spencer reported that their footfall doubled on the day of its visit. Our Christmas Facebook activity reached almost 400,000 people and our Christmas videos were viewed by over 92,000 people

5 DIRECTORS' REPORT (CONTINUED) Directors The directors who held office during the year and up to the date of signature of the financial statements were as follows: J Banks N C Beckhurst M McFadden R M W Naylor W J Plumridge A Rainer Jones A Pugh N Fisher T Cobb S Pierce D L Godfrey M Ogilvie M Lulham (Resigned 1 January 2017) M Gietzen L Salway W Callaghan (Resigned 15 February 2017) Mrs R Stone Mrs C Westbrey-Tong P Mills (Appointed 28 July 2016) Auditor In accordance with the company's articles, a resolution proposing that Price & Company be reappointed as auditor of the company will be put at a General Meeting. Statement of disclosure to auditor So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company s auditor is aware of that information. This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption. On behalf of the board... T Cobb Director

6 DIRECTORS' RESPONSIBILITIES STATEMENT The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors 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 company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities

7 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EASTBOURNE & DISTRICT CHAMBER OF COMMERCE LIMITED We have audited the financial statements of Eastbourne & District Chamber of Commerce Limited for the year ended 31 December 2016 set out on pages 6 to 19. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". This report is made solely to the company s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act Our audit work has been undertaken so that we might state to the company s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company s members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of directors and auditor As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors, including APB Ethical Standard - Provisions Available for Small Entities (Revised), in the circumstances set out in note 14 to the financial statements. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: give a true and fair view of the state of the company's affairs as at 31 December 2016 and of its surplus for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit, the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements, and the Directors' Report has been prepared in accordance with applicable legal requirements

8 INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EASTBOURNE & DISTRICT CHAMBER OF COMMERCE LIMITED Matters on which we are required to report by exception In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the Directors' Report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of directors' remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit; or the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Directors' Report and take advantage of the small companies exemption from the requirement to prepare a Strategic Report. Mr Malcolm Preece BA FCA DChA (Senior Statutory Auditor) for and on behalf of Price & Company Chartered Accountants Statutory Auditor Gildredge Road Eastbourne East Sussex BN21 4SH - 5 -

9 INCOME AND EXPENDITURE ACCOUNT Notes Income 118, ,402 Cost of sales (27,619) (29,550) Gross surplus 91,346 90,852 Administrative expenses (83,505) (75,306) Other operating income Operating surplus 2 7,861 15,713 Interest receivable and similar income Interest payable and similar expenses (486) (711) Surplus before taxation 7,390 15,018 Taxation (1,837) (3,775) Surplus for the financial year 5,553 11,

10 BALANCE SHEET AS AT 31 DECEMBER Notes Fixed assets Tangible assets 4 146, ,222 Investment properties 5 295, , , ,222 Current assets Debtors 7 14,296 19,143 Cash at bank and in hand 105,644 45,074 Creditors: amounts falling due within one year 8 119,940 64,217 (135,785) (77,101) Net current liabilities (15,845) (12,884) Total assets less current liabilities 425, ,338 Creditors: amounts falling due after more than one year 9 (9,081) (19,694) Net assets 416, ,644 Reserves Income and expenditure account 416, ,644 These financial statements have been prepared 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... and are signed on its behalf by: N C Beckhurst T Cobb Director Director Company Registration No

11 STATEMENT OF CHANGES IN EQUITY Revaluation Income and Total reserve expenditure account Notes Balance at 1 January , , ,401 Effect of transition to FRS 102 (280,205) 280,205 - As restated - 399, ,401 Year ended 31 December 2015: Profit and total comprehensive income for the year - 11,243 11,243 Balance at 31 December , ,644 Year ended 31 December 2016: Profit and total comprehensive income for the year - 5,553 5,553 Balance at 31 December , ,

12 NOTES TO THE FINANCIAL STATEMENTS 1 Accounting policies Company information Eastbourne & District Chamber of Commerce Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 7 Hyde Gardens, Eastbourne, East Sussex, BN21 4PN. 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 Eastbourne & District Chamber of Commerce 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 An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note Income and expenditure Income and expenses are included in the financial statements as they become receivable or due. Expenses include VAT where applicable as the company cannot reclaim it. 1.3 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: Freehold land & buildings Fixtures, fittings & equipment 50 years (from 10 April 2003) on buildings element only 5-10 years 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 surplus or deficit

13 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 1 Accounting policies (Continued) 1.4 Investment properties Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value a t the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account. Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets. 1.5 Impairment of fixed 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 individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value 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 for 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 carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in surplus or deficit, 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 have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the 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 reversal of an impairment loss is recognised immediately in surplus or deficit, 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. 1.6 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

14 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 1 Accounting policies (Continued) 1.7 Financial instruments The company has elected to apply the provisions of Section 11 Basic Financial Instruments and Section 12 Other Financial Instruments Issues of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company 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 debtors 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 transaction, 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 contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Basic financial liabilities Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. 1.8 Taxation The tax expense represents the sum of the tax currently payable and deferred tax

15 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 1 Accounting policies (Continued) 1.9 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 Group accounts The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertaking comprise a small-sized group. The company has therefore taken advantage of the exemptions provided by section 399 of the Companies Act 2006 not to prepare group accounts. 2 Operating surplus Operating surplus for the year is stated after charging/(crediting): Fees payable to the company's auditor for the audit of the company's financial statements 1,680 1,575 3 Employees The average monthly number of persons (including directors) employed by the company during the year was 2 (2015-4)

16 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 4 Tangible fixed assets Land and buildings Plant and machinery etc Cost or valuation At 1 January 2016 and 31 December ,000 31, ,345 Depreciation and impairment At 1 January ,123 28,123 Depreciation charged in the year 1, ,099 At 31 December ,455 28,767 30,222 Carrying amount At 31 December ,545 2, ,123 At 31 December ,000 3, ,222 Land and buildings with a carrying amount of 145,000 were revalued at 31 December 2015 by Mark McFadden FRICS ACIArb of Stiles Harold Williams, Chartered Surveyors, a director of the company, on the basis of market value. The valuation was in accordance with the requirements of the RICS Valuation - Professional Standards January 2014 and was based on recent market transactions on arm's length terms for similar properties. If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows: Cost 172, ,264 Accumulated depreciation 27,445 25,445 Total Carrying value 144, ,819 5 Investment property 2016 Fair value At 1 January 2016 and 31 December ,

17 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 5 Investment property (Continued) Investment property comprises 6 Hyde Gardens, Eastbourne. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 December 2015 by Mark McFadden FRCIS ACIArB of Stiles Harold Williams, Chartered Surveyors, a director of the company. The valuation was made on an open market value basis in accordance with the requirements of the RICS Valuation - Professional Standards January 2014, by reference to market evidence of transaction prices for similar properties. 6 Subsidiaries Controlling interest The Chamber has voting control of Eastbourne & District Enterprise Agency Limited, a company which is limited by guarantee and has no share capital. Details of the company's subsidiaries at 31 December 2016 are as follows: Name of undertaking Registered Nature of business office Eastbourne & District Enterprise Agency Limited England & Wales Enterprise Agency The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows: Name of undertaking Profit/(Loss) Capital and for the year Reserves 31 March 31 March Eastbourne & District Enterprise Agency Limited (13,063) 385,470 The investments in subsidiaries are all stated at cost

18 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 7 Debtors Amounts falling due within one year: Trade debtors 13,889 4,246 Other debtors ,897 8 Creditors: amounts falling due within one year 14,296 19, Bank loans and overdrafts 10,500 10,200 Trade creditors 11,891 24,554 Amounts due to group undertakings 82,457 21,304 Corporation tax 1,837 3,775 Other taxation and social security 2,077 - Other creditors 27,023 17,268 9 Creditors: amounts falling due after more than one year 135,785 77, Other creditors 9,081 19,694 The long-term loans are secured by fixed charges over the company's properties, 6 and 7 Hyde Gardens, Eastbourne. 10 Deferred income Arising from Members' subscriptions in advance 22,523 14,

19 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 11 Members' liability The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding 25 pence per member. At the year end, there were 610 members (2015: 467 members). 12 Related party transactions The Chamber has acquired voting control of Eastbourne & District Enterprise Agency Limited (EDEAL), which was set up as a local enterprise agency to promote the creation of all types of business concerns, and the expansion, improvement and development of businesses generally. The two organisations work together and share costs. The following expenses have been charged to EDEAL by the Chamber during the year: Chief Executive's salary Nil (2015: 18,333), salaries Nil (2015: 1,698.72), and other overheads 15, (2015: 3,265.27). The following expenses have been charged to the Chamber by EDEAL during the year: Chief Executive's salary 14, (2015: 6,666.64), salaries 10, (2015 7,998.81), Employers national insurance contributions 3, (2015: Included within salaries) and other overheads (2015: ). The salary, national insurance and pension contributions of all staff was paid via EDEAL's payroll scheme and 50% of the cost then re-charged to the Chamber as set out above. Included in 'Creditors: amounts falling due within one year' is an amount of 82,457 (2015: 21,304) owed to EDEAL at the end of the financial period. 13 Directors' transactions During the year, the company paid the following amounts for fees and services supplied by companies and businesses connected with directors of the company: Cobb PR: (T. Cobb) Identity Signage & Printing Ltd: (M. Geitzen) Plummer Parsons: (N. Beckhurst) Stiles Harold Williams: 6, (M. McFadden) Zest Printing: 1, (J. Banks) All payments relate to normal arms length commerical transactions. 14 Non-audit services provided by auditor In common with many businesses of our size and nature we use our auditor to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements

20 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 15 Reconciliations on adoption of FRS 102 Reconciliations and descriptions of the effect of the transition to FRS 102 on; (i) equity at the date of transition to FRS 102; (ii) equity at the end of the comparative period; and (iii) profit or loss for the comparative period reported under previous UK GAAP are given below. Reconciliation of equity At 1 January 2015 At 31 December 2015 Previous Effect of FRS 102 Previous Effect of FRS 102 UK GAAP transition UK GAAP transition Notes Fixed assets Tangible assets 152, , , ,222 Investment properties 295, , , , , , , ,222 Current assets Debtors 23,355-23,355 13,345-13,345 Bank and cash 42,903-42,903 45,074-45,074 66,258-66,258 58,419-58,419 Creditors due within one year Loans and overdrafts (9,960) - (9,960) (10,200) - (10,200) Taxation (4,657) - (4,657) 2,023-2,023 Other creditors (52,471) - (52,471) (49,115) - (49,115) Deferred income (16,888) - (16,888) (14,011) - (14,011) (83,976) - (83,976) (71,303) - (71,303) Net current liabilities (17,718) - (17,718) (12,884) - (12,884) Total assets less current liabilities 429, , , ,338 Creditors due after one year Loans and overdrafts (30,027) - (30,027) (19,694) - (19,694) Net assets 399, , , ,

21 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 15 Reconciliations on adoption of FRS 102 At 1 January 2015 At 31 December 2015 Previous Effect of FRS 102 Previous Effect of FRS 102 UK GAAP transition UK GAAP transition Notes Reserves (Continued) Revaluation reserve 1,2 280,205 (280,205) - 276,571 (276,571) - Income and 1,2 expenditure 119, , , , , ,644 Members' funds 399, , , ,644 Reconciliation of surplus for the financial period Year ended 31 December 2015 Previous UK Effect of FRS 102 GAAP transition Notes Income 120, ,402 Cost of sales (29,550) - (29,550) Gross surplus 90,852-90,852 Administrative expenses 2 (71,672) (3,634) (75,306) Other operating income Operating surplus 19,347 (3,634) 15,713 Interest receivable and similar income Interest payable and similar expenses (711) - (711) Surplus before taxation 18,652 (3,634) 15,018 Taxation (3,775) - (3,775) Surplus for the financial period 14,877 (3,634) 11,

22 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 15 Reconciliations on adoption of FRS 102 (Continued) Notes to reconciliations on adoption of FRS Investment property revaluation reserve Section 16 'Investment property' of FRS 102 requires that any changes in the fair value of an investment property is accounted for through the profit and loss account. As a result, the investment propertyrelated revaluation surplus held in the equity section of the balance sheet has been transferred to profit and loss reserves as a transitional adjustment effective as of the date of transition. 2. Freehold property revaluation reserve Section 17 'Property, Plant and Equipment' of FRS 102 requires that if an asset's carrying amount decreases as a result of a revaluation and if that revaluation decrease exceeds the accumulated revaluations gains accumulated in equity in respect of that asset, then the excess should be recognised in the profit and loss account. Therefore, the devaluation of the freehold property in the previous accounting period has been charged to the profit and loss account as a transition adjustment

23 DETAILED TRADING AND INCOME AND EXPENDITURE ACCOUNT Income Subscriptions - members 64,286 58,797 Property rents 30,250 30,750 Meetings and events 22,722 26,559 Diary adverts 1,707 4, , ,402 Cost of sales Meeetings and events 21,228 23,451 Diary costs 6,391 6,099 (27,619) (29,550) Gross surplus 76.78% 91, % 90,852 Administrative expenses (83,505) (75,306) Sundry income Operating surplus 7,861 15,713 Investment revenues Bank interest received Interest payable and similar expenses Interest payable - not financial liabilities - 3 Non bank interest on loans (486) (711) Surplus before taxation 7,390 15,

24 SCHEDULE OF ADMINISTRATIVE EXPENSES Administrative expenses Wages and salaries 28,959 41,258 Rates 623 (1,778) Cleaning Power, light and heat Property repairs and maintenance 24,772 1,424 Premises insurance 1,756 1,299 Computer running costs 2,394 2,543 Travelling expenses Legal and professional fees 1,153 2,010 Accountancy 6,570 8,204 Audit fees 1,680 1,575 Bank charges Credit card charges 1, Bad and doubtful debts 2,500 1,348 Printing and stationery 3,568 3,557 Advertising 2,039 3,297 Telecommunications 565 1,964 Sundry expenses 2,341 1,395 Depreciation 2,099 2,805 Freehold property devaluation - 1,819 83,505 75,