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10 Filbert Village Student Accommodation Limited Partnership Partner s report and financial statements Year ended 31 December 2014 Notes (continued) 1 Accounting policies (continued) Tangible fixed assets and depreciation In accordance with SSAP19 Accounting for Investment Properties: - investment properties are revalued every six months at market value (determined in accordance with the Guidance Notes on the valuation of assets issued by the Royal Institution of Chartered Surveyors). Surpluses and deficits arising are transferred to the revaluation reserve except that any permanent impairment in the value of an investment property is taken to the profit and loss account for the year where it cannot be demonstrated that the recoverable amount of the asset is greater than the revalued amount; and - no depreciation or amortisation is provided in respect of freehold investment properties or leasehold investment properties with over 20 years to run. This treatment, as regards the partnership s investment properties, may be a departure from the requirements of the Companies Act concerning the depreciation of fixed assets. However, these properties are not held for consumption but for investment and the directors consider that systematic annual depreciation would be inappropriate. The accounting policy adopted is therefore necessary for the accounts to give a true and fair view. Depreciation or amortisation is only one of the many factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be separately identified or quantified. Net gains or losses on disposal of investment properties are calculated by reference to book value at the date of disposal and any revaluation surpluses of earlier years are transferred from revaluation reserve to the profit and loss account as a reserve movement. Taxation The taxation payable on the profits of the partnership is the personal liability of the partners during the year and consequently neither taxation nor related deferred taxation is accounted for in the financial statements. Distribution Policy Income produced by the Partnership is distributed to the Limited Partners to the extent that Partnership income exceeds total expenditure. Cash and liquid resources Cash, for the purpose of the cash flow statement, comprises cash in hand and deposits repayable on demand, less overdrafts payable on demand. 2 Turnover Turnover of the partnership for the year has been derived from its principal activity undertaken wholly in the United Kingdom. 8

11 Filbert Village Student Accommodation Limited Partnership Partner s report and financial statements Year ended 31 December 2014 Notes (continued) 3 Profit on ordinary activities before taxation Profit on ordinary activities before taxation is stated after charging/(crediting) Net rental income received under operating leases (1,764) (1,811) Impairment of fixed asset property 500 1,726 Auditor s remuneration of 835 (year ended 31 December 2013: 810) was borne by another group entity. Fees paid to the partnership s auditor, KPMG Audit Plc and its associates for services other than the statutory audit of the partnership are not disclosed in the partnership accounts since the consolidated accounts of the major limited partner, The UNITE UK Student Accommodation Fund are required to disclose non audit fees on a consolidated basis. 4 Tangible fixed assets Investment property 000 Valuation At beginning of year 28,710 Additions 560 Impairment (500) At end of year 28,770 The investment property was valued as at 31 December 2014, on the basis of market value as defined in the RICS Appraisal and Valuation Manual issued by The Royal Institution of Chartered Surveyors by CB Richard Ellis Ltd, Chartered Surveyors as external valuers. The property is freehold. The historical cost of the property at 31 December 2014 was 35,989,000 (31 December 2013: 35,429,000). 5 Debtors Amounts due from related parties - 1,658 Other debtors - 1-1,659 All debtors are due within one year. 9

12 Filbert Village Student Accommodation Limited Partnership Partner s report and financial statements Year ended 31 December 2014 Notes (continued) 6 Creditors: amounts falling due within one year Amounts owed to group undertakings 1,103 2,410 Other creditors ,358 2,467 7 Loans and other debts due to partners Reconciliation of movements in total partners interests Partners capital Other reserves Total Partners loan accounts Total Partners interest Partners interests at 1 January (6,209) (6,209) 34,121 27,912 Loss for the financial year - (490) (490) - (490) Partners interests at 31 December (6,699) (6,699) 34,121 27,422 The loans from partners are interest free and have no fixed repayment date. 8 Reconciliation of operating profit to operating cash flows Profit on ordinary activities before taxation 1, Decrease/(increase) in debtors 1,659 (1,659) (Decrease)/increase in creditors (1,109) 2,008 Impairment of investment property 500 1,726 Net cash inflow from operating activities 2,272 2,121 10

13 Filbert Village Student Accommodation Limited Partnership Partner s report and financial statements Year ended 31 December 2014 Notes (continued) 9 Analysis of cash flows Capital expenditure Purchase of tangible fixed assets (560) (456) (560) (456) Distributions Distributions paid (1,712) (1,665) (1,712) (1,665) 10 Capital commitments The partnership had no capital commitments at 31 December 2014 (31 December 2013: nil). 11 Contingent liabilities The partnership had no contingent liabilities at 31 December 2014 (31 December 2013: nil). 12 Related party transactions The partnership had the following disclosable transactions with related parties in accordance with FRS8: The Unite Group plc and subsidiary companies: Amounts due from The Unite Group plc and subsidiary companies at 31 December 2014: nil (31 December 2013: 1,658,000). The UNITE UK Student Accommodation Fund and its subsidiary entities ( USAF ): Amounts due to USAF: 1,103,000 (31 December 2013: 2,410,000). These balances arose due to the movement of cash between USAF entities. 13 Controlling party The partnership is controlled by The Filbert Village Student Accommodation Unit Trust as 99.93% partner. The partnership s ultimate parent undertaking is The UNITE UK Student Accommodation Fund, a Jersey registered Unit Trust. 11