COMPANIES HOUSE 30 SEP 2015 EDINBURGH FRONT DESK 4229.300 Trump International Golf Club Scotland Limited Directors' report and financial statements for the year ended 31 December 2015 ll ll SCT 301091'2016 #259 COMPANIES HOUSE FRIDAY TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED TABLE OF CONTENTS COMPANY INFORMATION STRATEGIC REPORT REPORT INDEPENDENT REPORT PROFIT AND LOSS ACCOUNT I BALANCE SHEET STATEMENT OF CHANGES IN EQUITY CASH FLOW STATEMENT NOTES TO THE FINANCIAL STATEMENTS PAGE 10 11 12 TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED COMPANY INFORMAHON DIRECTORS Mr DJ Trump Mr Trump Mr Trump Ms Trump Mr A Welssel berg SECRETARY Mr Sorlal REGISTERED OFFICE Saltire Court 20 Castle Terrace Edinburgh EH1 ZEN REGISTERED NUMBER 5C292100 SOLICITORS Dundas St Wilson LLP Saltlre Court 20 Castle Terrace Edinburgh EH1 ZEN AUDITOR Johnston Carmichael LLP Bishop?s Court 29 Album Place Aberdeen A310 TRUMP INTERNATIONAL GOLF CLUB SCOTLAND STRATEGIC REPORT for the year ended 31 December 2015 The directors present their strategic report for the company for the year ended 31 December 2015. PRINCIPAL ACTIVITIES AND BUSINESS MODEL The compilan principal activity during the year was the operation of a pay per play championship links golf course, boutique house hotel and golf house shop, bar and restaurant. Given the inclement nature of the winter weather in the region, the operation of the golf course is seasonal, opening in March and closing in November each year. The golf house shop, bar and restaurant remain open all year, as does MacLeod House and Lodges. REVIEW OF THE BUSINESS 2015 was the third full playing golf season and saw the completion of the permanent clubhouse and appointment of a new sales and marketing team locally. This vital capital investment in retail, food, beverage and other guest facilities immediately resulted in five-star status being awarded, and enabled the business to introduce individual membership. The property now offers pay?and-piay golf and membership opportunities which will provide a robust business model going forward and help maintain revenue amidst the current economic downturn. Green fees for the golf season were maintained at the highest level resulting in increased revenues and a stabilization of footfall due to the growing international reputation of the golf resort and effective sales and marketing activities. Overall revenues in 2015 have increased 7.4% compared to 2014, in spite of the economic downturn experienced in the North East of Scotland due to the collapse of the oil prices with over a hundred thousand redundancies in the oil and gas industry affecting every sector in the region. The property continues to attract international acclaim including Best Golf Course (over ?100) in the country by The Scottish Golf Tourism Awards in 2015 and Best Modern Course of Great Britain 8: ireland for the third year running by GolfWeek. Looking forward to 2016, services will continue to expand and develop, with further capital investment planned. RESULTS The profit and loss account is set out on page 8. The operating loss before depreciation for the year ended 31 December 2015 amounted to ?815,483 (2014: ?795,048). KE FINANCIAL PERFORMANCE INDIGII TORS Management ofthe company provide the directors with a suite of KPl?s at the end of each month. These include an analysis of month on month and year on year changes in revenue, costs and operating pro?t for each department. Where relevant, an analysis of gross margins is carried out and reported for the food and beverage and retail operations. TRUMP GOLF CLUB SCOTLAND STRATEGICBEPORT PRINCIPAL REKSAND The directors have undertaken a comprehensive review of the risks facing the company. The Industry is both competitive and :lmllengins, rm that are heightened bythe opening dip In the local economy, and adverse weather conditions. The directors have detailed knowiedse and experience of the sector, and have established business policies and an organisation structure to tantrum risks. which are remedy reviewed and reassessed to proactiveiv limit their impact. On behalf of the directors x3? Director Mr Trump 28 September, 2016 TRUMP INTERNATIONAL GOLF CUJB SCOTLAND UNIFIED REPORT forthevearended 31 December-1015 The directors present their report and the emitted ?nancial statements of the company for the year ended 31 December 2015. PRINCIPAI AND RHURE DEVELOPMENTS The principal activities, streteeyand chimes ofthe company are Included in the Stated: Report on 3:333:34 RSULTSAND BMW The results for the war are shown on page 8.1hecornpanydid notdeciare or poverty dividends during the years ended 31 December 2015 or 31 December 2014. DIRECTORS AND SECREFARY The directors and secretary are listed on page 2 and, unless otherwise stated, have served throughout the year ended 31 December 2015. STATEMENTOF mamas The directors are responsible for preparing the strategic Report. Directors' Report and the ?nancial statements in accordance with applicable law and restrictive. Companyr law requires the directors to prepare ?nancial statements for each ?nancial year. Under that law the dint-tors have prepared the ?nancial statements in accordance with United Kingdom Generally Accepted Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the ?nancial statements latices theyI are satisfied that theygiveatrua andofthepro?t company for that period. In preparing these ?nancial statements. the directors are required to: I select suitable policies and then appiythem consistently; I makeiudgernents and accounting estunatesthat are reasonable and prudent: and I prepare the ?nancial statements on the going concern basis unless it is inappropriate to presume that the company will continue In basiness. a 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 antiP time the ?nancial position of the company and enable them to ensure that the ?nancial statements comply with the Companies Act 2005. They are also resporuiblefor safeguarding theassets oithe company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. AUDITOR The auditor, Johnston Carmichael LLP, ls deemed to be reappointed under section 487(2) of the Companies Act 2006. STATEMENT OF DISCIOSURE Sofas astha directors are aware, there is noteiwant euditinfcmaticn of width the company's auditor is unaware. andthediractors havetaitan all the theyoughtto havetaken as directors in orderto make Wolves aware of all relevant audit hiformation andto thatthe company's auditor is aware of that information. On behalf of the directors Director mm" pry 28 September, 2016 - .5- TRUMP INTERNATIONAL GOLF CLU SCOTLAND LIMITED INDEPENDENT REPORT TO THE MEMBERS OF TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED We have audited the ?nancial statements of Trump international Golf Club Scotland Limited for the year ended 31 December 2015 set out on pages 8 to 23. The ?nancial 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 he 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 2006. 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 ANDAUDITOR As explained more fully In the Statement of Directors? Responsibilities set out on page 5, the directors are responsible for the preparation of the ?nancial statements and for being satis?ed that they give a true and fair view. Our responsibility is to audit and express an opinion on the ?nancial 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. SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS An audit involves obtaining evidence about the amounts and disclosures in the ?nancial statements suf?cient to give reasonable assurance that the ?nancial 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 ?nancial and non-?nancial information in the Strategic Report and Directors' Report to identify material inconsistencies with the audited ?nancial 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 STA TEMENTS In our opinion the ?nancial statements: I give a true and fair view of the state of the company's affairs as at 31 December 2015 and of its loss for the year then ended; I have been properly prepared in accordance with the United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Acts 2006. OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion the information given in the Strategic Report and Directors' Report for the ?nancial year for which the ?nancial statements are prepared ls consistent with the ?nancial statements. TRUMP INTERNATIONAL GOLF CLUB SCUTLAND LIMITED INDEPENDENT REPORT TO THE MEMBERS OF mum INTERNATIONAL GOLF CLUB SCOTLAND umrreo (continued) MATERS 0N WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report In respect of the following matters where the Companies Acts 2006 requires us to report to you if, in our Opinion: I adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or I the ?nancial statements are not In agreement with the accounting records and returns; or I certain disclosures of directors' remuneration speci?ed bylaw are not made; or I we have not received all the information and explanations we require for our audit. Carmemog}. km? Fiona Kenneth (Senior Statutory Auditor) 23? 30 For and on behalf of Johnston Carmichael LLP Bishop?s Court Chartered Accountants 29 Albyn Place Statutory Auditor Aberdeen A310 1YL - 7 - TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED PROFIT AND LOSS ACCOUNT for the year ended 31 December 2015 2015 2014 Turnover 3,000,329 2,793,948 Cost of sales (2,715,462) (2,607,983) GROSS PROFIT 284,867 185,955 Administrative expenses (1,114,337) (1,07 2,917) Other operating income 13,987 91,904 OPERATING (.055 BEFORE (815,483) (795,048) Depreciation expense (278,826) (342,846) OPERATING LOSS (1,094,309) (1,137,894) interest payable and similar charges (1,799) (1,619) Loss on ORDINARY ACTIVITIES BEFORE TAXATION (1,096,108) (1,139,513) Tax on loss on ordinary activities - .. 1055 FOR THE FINANCIAL YEAR (1,096,108) (1,139,513) The pro?t and loss account has been prepared on the basis that all operations are continuing operations. The company has no recognised gains or losses other than as included in the profit and loss account for the period. Accordingly, no statement of comprehensive Income is presented. . TRUMP INTERNATIONAL GOLF CRIB SCOTLAND BALANCE SHEET at 31 Dumber? 2015 2014 Note FIXED ASSETS Tangible assets 7 31,563,927 30,359,798 CURRENT ASSETS Stocks 9 178, 707 121,296 Debtors 10 87,389 138,759 Cashmbankanmnhand 131,014 79,366 397,120 339,921 cannons-we withln uneven: 11 (696,813) (920,192) HET CURRENT LIABILITIES {299,698} (580,271) TOTAL ASSETS LESS CURRENT 31,264,229 29,779,517 CREDITURS - due over am you 12 (39,406,027) (3 6,926,059) NET LIABILITIES (3,141,798) (7,146,542! CAPITAL AND RESERVES called up share capital 14 1,000 1,000 Other reserves 16 1,574,462 1,473,610 Pm?t and loss reserves 16 (9,717,260) (8,621,152) mommy 0mm (3,141,793) (7,146,542) The ?nancial Inter-nexus on p333 to 23 were appmved by the bum-def directors on 28 Saptembar, 2016 and were signed on Its behalf by: Director Mr 'n?ump Cmnpaw Registered TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED STATEMENT OF CHANGES IN EQUITY for the year ended 31 December 2015 Other Profit and Share can.? reserves loss Total reserves Balance at 1 January 2014 1,000 1,425,576 (7,481,639) (6,055,063) Period ended 31 December 2014 Loss for the year - - (1,139,513) (1,139,513) Equity component of ?nancing - 48,034 - 48,034 loan Balance at 31 December 2014 1,000 1,473,610 (8,621,152) (7,146,542) Period ended 31 December 2015 Loss for the year - - (1.096,108) (1,096,108) Equity component of ?nancing - 100,852 - 100,852 loan Balance as at 31 December 2015 1,000 1,574,462 (9317.260) -10- TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED CASH FLOW STATEMENT for the year ended 31 December 2015 2015 2014 Note Cash ?ow from operating octMties Cash utilised In operations 19 (1,054,788) (444,021) interegpald (1,799) (1,619) Net cash outflow from operating activities (1,056,587) (445,640) Investing activities Purchase of ?xed assets (1,513,128) (792,610) Proceeds from disposal of ?xed assets 239,427 13,433 Net cash used in Investing activities (1,473,701) (779,177) Financing activities Increase in director?s loans and other reserves 2,622,147 1,248,880 Capital element of ?nance lease payments (40,701) (38,527} Net cash generated from financing activities 2,581,446 1,210,353 Net Increase/(decrease) In cash and cash equivalents 51,158 (14,464) Cash and cash equivalents at beginning of period 79,866 94,330 Cash and cash equivalents at end of period 131,024 79,866 Cash at bankand In hand 131,024 79,866 -11- TRUMP INTERNATIONAL GOLF CLUB SCOTLAN LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 1. ACCOUNTING POLICIES COMPANYINFORMABON Trump International Golf Club Scotland Limited is a limited company domiciled and incorporated in Scotland. The registered of?ce is 4? Floor, Saltlre Court, 20 Castle Terrace, EDINBURGH, EH1 ZEN. ACCOUNTING CONVENTION These ?nancial statements have been prepared in accordance with FRS 102 ?The Financial Reporting Standard applicable in the UK and Republic of Ireland? 102?) and the requirements of the Companies Act 2006. The ?nancial statements are prepared in pounds sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound sterling. The ?nancial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below. These ?nancial statements for the year ended 31 December 2015 are the first ?nancial statements of Trump international Golf Club Scotland Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of lreiand. The date of transition to FRS 102 was 1 January 2014. GOING CONCERN These ?nancial statements are prepared on a going concern basis. The company had net current liabilities at 31 December 2015 of ?299,698 (2014: ?580,271) and is dependent on continuing ?nance being made available by its ultimate owner to enable it to continue operating and to meet its liabilities as they fall due. Trump has con?rmed that he will ensure all necessary ?nancial support is provided to the company for the foreseeable future to enable it to meet its ?nancial obligations as they fall due for at least a period of 12 months from the date of signing the ?nancial statements. REVENUE RECOGNITION Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts and VAT. Founder members' fees are recognised in the period they are received while annual subscriptions, individual games and retail purchases are recognised in the period to which they relate. Revenue from the provision of services is recognised at the point the service is provided. FOREIGN CURRENCIES Transactions during the year denominated in foreign currencies have been translated at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated to pound sterling at the rates of exchange ruling at the balance sheet date. The resulting profits or losses are dealt with in the pro?t and ioss account. -12- TRUMP INTERNATIONAL GOLF CLUB SWTLAND NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 1. ACCOUNTING POLICIES (continued) TANGIBLE FIXED ASSETS Tangible fixed assets are initially measured at cost and subsequentiy measured at cost, net of depreciation and anyimpairment losses. Depreciation ls recognised so as to write off the cost of assets less their residual values over their useful lives on the following reducing balance bases: Plant and machinery 25% Fixtures, fittings and equipment 15% Motor vehicles 25% 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 recognised in the profit and loss account. All costs directly associated with the development of the golf resort have been capitalised under land and buildings. The golf resort, which currently comprises the golf course, certain buildings and associated land, is not depreciated as it is being developed and maintained to a high standard. Ongoing maintenance costs are charged to the profit and loss account when Incurred. FIXED ASSETS At each reporting 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 ls 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. FINANCE LEASES Leases are classi?ed as ?nance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classi?ed as operating leases. Assets held under ?nance leases are capitalised in the balance sheet and are depreciated over their estimated useful lives or the lease term, whichever is the shorter. The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. STOCKS Stocks are valued on a ?rst In, ?rst out basis at the lower of cost and net realisable value after making due allowance for any obsolete or slow moving items. Cost comprises the invoice purchase price net of trade rebates and trade discounts, together with costs of freight and duty and a appropriate allocation of overheard expenses included under normal production. Net realisable value comprises the actual or estimated selling price, net of trade rebates and trade discounts, less all further costs to be incurred in marketing, selling and distribution. -13- TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 1. ACCOUNTING POLICIES (continued) CASH AND CASH EQUIVALENTS Cash and cash equivalents 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 overd rafts. The company has elected to apply the provisions of Section 11 'Basic Financial Instruments? and Section 12 ?Other Financial Instruments Issuesits ?nancial instruments. Financial instruments are recognised in the company's bala nce 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 ?nancial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaclion 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. OF FINANCIAL ASSETS Financial assets, other than those held at fair value through pro?t and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset. the estimated future cash flows have been affected. if an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset?s original effective interest rate. The impairment loss is recognised in pro?t and loss. If there is a decrease in the Impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in pro?t and loss. OF ASSETS Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the ?nancial asset and substantially all the risks and rewards of ownership to another entity or if some signi?cant risks and rewards of ownership are retained but control of the asset has been transferred to another party that is able to sell the asset in its entirety to an unrelated third party. -14- TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 1. ACCOUNTING POLICIES (continued) CLASSIFICATION OF FINANCIAL UABIUTTES Financial liabilities and equity instruments are classi?ed 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 ?nancial liabilities, including trade and other payables and bank loans are Initially recognised at transaction price unless the arrangement constitutes a ?nancing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. 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. Accounts payable are classi?ed 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 amortlsed cost using the effective Interest method. OF FINANCIAL UABIUNES Financial liabilities are derecognised when, and only when, the company?s obligations are discharged, cancelled, or they expire. EMPLOYEE BENEFITS The costs of short-term employee bene?ts are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or ?xed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee?s services are reteived. Termination bene?ts are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination bene?ts. DEFERRED TAXATION Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or right to pay less tax, at a future date, at rates expected to apply when they based on current tax rates and law. Timing differences arise from inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the ?nancial statements. Deferred tax assets are recognised to the extent that It Is regarded as more likely than not they will be recovered. Deferred tax assets and liabilities are not discounted. -15- TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 1. ACCOUNTING POLICIES (continued) AND KEYSOURCES OF ESTTMA TION UNCERTAINTY In the application ofthe company?s accounting policies, the directors are required to makejudgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both mutant and future periods. The following are considered to be either judgements that have had the most signi?cant effect on amounts recognised in the ?nancial statements, or estimates that are dependent on assumptions which could change In the next ?nancial year and have a material effect on the carrying amounts of assets and recognised at the balance sheet date. VALUATION 0F FIXED ASSETS The directors must consider the recoverable value of ?xed assets to assess whether there has been any impairment. In doing so, they have taken into account current market conditions and the company?s future plans. DISCOUNTING OF LOAN Loans advanced from the director are financing transactions attracting no interest and are repayable one year and one day after the end of the ?nancial period. As such, the directors are required to assess a market rate of interest for similar borrowing that may be available from lenders at arm's length, in order to quantify the carrying amount upon initial recognition at fair value, and the corresponding equity component. Market rates of interest are estimated by the directors by comparison with interest rates offered by banks for lending of comparable risk profile. 2. TURNOVER All income is generated in the United Kingdom. An analysis of the company?s turnover is as follows: 2015 20.14 Tu mover Provision of Services 1,844,731 1,758,677 Sale of Goods 1,155,598 1,03 5,271 3,000,329 2,793,948 -16. TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 (continued) 3. OPERATING LOSS Operating loss ls stated after 2015 2014 Auditor?s remuneration 13.750 15,000 Gain on disposal of fixed assets (9,254) (6,396) (GalnMoss on foreign exchange (5,073) 33,565 Depreciation of tangible fixed assets: Owned assets 234,397 281,946 Leased assets 44,449 60,900 Cost of stock recognised as an expense 543,596 563,644 4. EMPLOYEES AND The average number of persons employed by the company (Including directors) during the period was as foliows: 2015 2014 By activity No. No. Golf operations 14 13 Food, beverage and accommodation 43 40 Grounds, landscaping and maintenance 18 22 Administration 15 20 95 95 2015 2014 Employees costs comprise: Wages and salaries 1,924,140 1,793,974 Social welfare costs 153,496 148,742 2,071,636 1,947,716 There was no directors? remuneration paid during the year ended 31 December 2015 (2014: ?nil). 5. INTEREST PAYABLE AND SIMILAR CHARGES 2015 2014 1: Interest payable on ?nance leases 1,799 1,619 1,799 1,619 -17- TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 (continued) 6. TAX 0N PROFIT ON ORDINARY ACTIVITIES for) Analysis of charge in period: 2015 2014 Current tax: Corporation tax at 20. 25% {2014: 21.49%) - - Tax on pro?t on ordinary activities - - Factors a?ectr'ng tax charge for period: The tax assessed for the year is different from that computed using the standard rate of corporation tax in the United Kingdom. The differences are explained below: 2015 2014 Loss on ordinary activities before taxation (1,096,108) (1,139,513) Profit on ordinary activities multiplied by standard rate in the United Kingdom 20.25% (2014: 21.49%) (221,962) (244,881) E??ects of: Expenses not deductible for tax purposes 4,167 2,104 Fixed asset differences {260) - Amounts credited directly to other reserves 50,255 - Other permanent differences 234 - Timing differences not recognised (29,836) - Change in deferred tax rate 153,931 16,832 Deferred tax not recognised 43,471 225,945 Tax charge for the year - - Circumstances o?ecting future tax charges: The corporation tax rate in the United Kingdom reduced to 20% from 1 April 2015. Further reductions have been announced to reduce corporation tax to 19% from 1 April 2017 and to 18% from 1 April 2020. Deferred tax: A potential deferred tax asset of ?1,363,741 (2014: ?1,320,270} has not been recognised. -18- TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 (continued) 7. TANGIBLE FIXED ASSETS Land and Plant and Fixtures Motor buildings machinery and ?ttings vehicles Tami 1' Cost: At 31 December 2014 29,023,295 1,454,572 983,196 57,665 31,518,723 Additions 1,375,315 60,503 77,310 - 1,513,128 Disposals (35,329) (15,075) - (50,404) At 31 December 2015 30,393,610 1,479,746 1,045,431 57,665 32,981,452 Depreciation: At 31 December 2014 - 740,579 402,724 15,627 1,158,930 Charge for the year 178,380 94,140 6,306 278,826 Disposals - (12,374) (7,357) - (20,231) At 31 December 2015 - 906,085 439,501 21,933 1,417,525 Net hook wares: At 91 December 2015 30,398,610 573,661 555,924 35,732 31,563,927 At 31 December 2014 29,023,295 713,993 580,472 42,038 30,359,798 Asset heid under ?nance leases and capitalised in plant and machinery 2015 2014 Cost 317,860 327,918 Aggregate depreciation (177,573) (137,544) Net book value at 31 December 140,287 190,374 8. FINANCIAL INSTRUMENTS 2015 2014 Carrying amount of financial assets Debt instruments measured at amortised cost 167,726 170,208 amount of financlal liabilities Measured at amortised cost 39,785,230 37,377,858 -19.. TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 (continued) 9.snxao 2015 2014 Goods for resale 178,707 121,296 At 31 December 178,707 121,296 10. DEBTORS - due within one year 2015 2014 Trade debtors 24.028 42,017 Value added tax 25,649 - Other debtors and prepayments 37,712 96,742 At 31 December 87,389 138,759 11. CREDITDRS due within one year 2015 2014 Trade creditors 287,827 313,804 Finances leases 41,337 40,701 Value added tax - 17,079 Other taxes and social security 49,708 50,105 Other creditors and accruals 317,946 498,503 At 31 December 696,818 920,192 12. CREDITORS - due after one year 2015 2014 Finance leases 44.492 85.329 Director? 5 loans 39,361,535 36,840,240 At 31 December 39,406,027 36,926,069 -20- TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 (continued) 13. LOANS AND OTHER BORROWINGS 2015 '2014 5 Finance leases 35.329 126,530 Director?s loans 39,361,535 36,840,240 At 31 December 39,447,364 36,966,770 Repayment details for the Director?s loans are detailed in note 18. Finance lease obligations Future minimum iease payments due under ?nance leases: Within one year 41,337 40,701 In two to five years 44,492 85,8 29 85.8 29 126,530 Loans and other borrowings Net obligations under ?nance leases are secured by ?xed charges on the assets concerned. Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Payabie within one year 41,337 40,701 Payable after one year 39,406,027 36,9 26,069 39,447,364 36,966,770 14. SHARE CAPITAL 2015 2014 Authorised, allotted, called up andfu?y paid: 1,000 ordinary shares of ?1 each 1,000 1,000 15. CONTROL The company is controlled by Mr DJ Trump, director. 16. RESERVES The pro?t and loss reserve represents cumulative realisable pro?ts and losses. Other reserves represent the equity component of ?nancing loans. -21. TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 (continued) 17. CAPITAL COMMITMENTS On the 31 December 2015, the value of the continued estate developments contracted for but not provided was Enil (2014: ?821,793). 18. RELATED PARTIES No key management personnel, including directors, are remunerated through the company. Transactions with Related Parties Included within creditors due after more than one year is a loan of ?39,361,535 (2014: ?36,840,240) from a director. This loan is interest free and has been discounted at a market note of Interest with the equity component transferred to other reserves. The loan has a rolling repayment term and requires the lender to provide 12 months written notice of any request for full or partial repayment. During the year, purchases of ?26,716 (2014 - ?5,500) were made from companies controlled by the directors. At the year end, Enil (2014: ?4,000) was due to these companies. 19. CASH UTILISED IN OPERAHONS 2015 2014 ?2 Cosh utilised in operations Loss for the year (1,096,108) (1,139,513) Adjustments for: Finance costs 1,799 1,619 Depreciation costs 278,826 342,846 Gain on sale of ?xed assets (9,254) (6,396) (824,737) (801,444) Movement in working oapitoi: (Increase)/decrease in stocks (57,411) 303,902 Decrease in debtors 51,370 108,392 Decrease in creditors (224,010) (54,871) Cash utilised in operations (1,054,788) (444,021) TRUMP INTERNATIONAL GOLF CLUB SCOTLAND LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 (continued) 20. RECONCILIATIONS ON ADOPTION OF FRS 102 Reconciliation of equity 1 January 31 December 2014 2014 ii Equity reported under previous UK GAAP (7,480,639) (8,620,152) Equity component of ?ne ncing loans 1,425,576 1,473,610 Equity reported under FRS 102 (6,055,063) (7,146,542) Reconciliation of profit or loss 2014 Loss reported under previous UK GAAP and under FRS 102 (1,139,513) This Is the first year that the company has presented its ?nancial statements under FRS 102 issued by the Financial Reperu'ng Council. The last ?nancial statements under previous UK ?nancial reporting framework were for the period ended 31 December 2014 and the date of transition to FRS 102 was therefore 1 January 2014. The only change to the comparative balance sheet under FRS 102 is to reduce the carrying value of ?nancing loans and incorporate the equity component in other reserves. -23..