Registered number: 01263742 Charity number: 271665
THE JAPANESE SCHOOL LIMITED
(A Company Limited by Guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
THE JAPANESE SCHOOL LIMITED
(A Company Limited by Guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and Administrative Details of the Company, its Trustees and Advisers | 1 - 2 |
| Trustees' Report | 3 - 6 |
| Independent Auditor's Report on the Financial Statements | 7 - 10 |
| Statement of Financial Activities | 11 |
| Balance Sheet | 12 |
| Statement of Cash Flows | 13 |
| Notes to the Financial Statements | 14 - 30 |
THE JAPANESE SCHOOL LIMITED
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2024
| Trustees | Mr Y Nakano |
|---|---|
| Mr S Yoshihara | |
| Mr K Takahiro | |
| Mr J Otake | |
| Mr D Mototani | |
| Mr H Saito (Appointed 1 April 2024) | |
| Mr K Nobuta (Appointed 1 April 2024) | |
| Ms S Ueda (Appointed 5 December 2024) | |
| Mr S Nakamura (Appointed 1 March 2025) | |
| Mr H Kurakagi (Appointed 1 April 2025) | |
| Mr T Shinohara (Appointed 1 April 2025) | |
| Mr T Hirano (Appointed 1 April 2025) | |
| Mr T Nunosawa (Appointed 1 April 2025) | |
| Mr Y Ishizuka (Resigned 1 March 2025) | |
| Ms Y Tsujimura-Higaki (Resigned 5 December 2024) | |
| Ms M Sunohara (Resigned 5 December 2024) | |
| Mr S Ichinokawa (Resigned 5 December 2024) | |
| Mr S Kuwata (Resigned 1 April 2024) | |
| Mr F Serizawa (Resigned 1 April 2024) | |
| Mr H Mishima (Resigned 1 April 2024) | |
| Mr S Ichinokawa (Resigned 5 December 2024) | |
| Mr H Koike (Resigned 5 December 2024) | |
| Mr K Nakamura (Resigned 1 April 2024) | |
| Mr M Sato (Resigned 1 April 2024) | |
| Mr S Kato (Resigned 1 April 2025) | |
| Ms S Nagashima (Resigned 1 April 2025) | |
| Mr A Takada (Resigned 1 April 2025) | |
| Mr F Suzuki (Resigned 1 April 2025) |
Company registered number 01263742 Charity registered number 271665 Registered office 87 Creffield Road Acton London W3 9PU Company secretary Mr T Kitada Independent auditor Haslers Chartered Accountants Old Station Road Loughton Essex IG10 4PL
Page 1
THE JAPANESE SCHOOL LIMITED
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Page 2
THE JAPANESE SCHOOL LIMITED
(A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
The Trustees present their annual report together with the audited financial statements of the Company for the 1 January 2024 to 31 December 2024. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Objectives and activities
a. Policies and objectives
The purpose of the company is to provide facilities for the education of the children of the Japanese community in the United Kingdom.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
The school had provided educational services through the Japanese School in London (JSL), a day school and the Japanese Saturday School in London (JSSL), at which classes are given on Saturdays. JSL has 300 pupils and JSSL has 1,100 pupils on three campuses. The schools’ Japanese based education is essential for the Japanese families in London, both expatriate and local.
b. Strategies for achieving objectives
The company operates the JSL (Day school) and the JSSL (Saturday supplementary school) to provide benefit to the public through its educational activities.
In providing the above educational services, the trustees of the company have had regard to the guidance issued by the Charity Commission on public benefits.
c. Activities undertaken to achieve objectives
To promote international understanding of pupils, the JSL conducted exchange programmes with schools in London, including the Greek School, Spanish School, French School and SOAS.
The school also conducted activities like Sports Day, Cultural Festival and the whole school outing for drawings to make pupils active in various fields.
Strategic report
Achievements and performance
a. Main achievements of the Company
The JSL in Acton has ca 300 pupils aged 6 – 15. The school has provided elementary and secondary pupils with a full range of curriculum in accordance with the Japanese educational ministry standard and the fundamental British values education.
Page 3
THE JAPANESE SCHOOL LIMITED (A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Strategic report (continued)
Achievements and performance (continued)
The JSSL has ca 1,100 pupils on three campuses, Acton, Brent and Croydon. The main subject being taught is Japanese language, with some Japanese cultural events with opportunities to experience something important for their childhood of the pupils residing in the UK.
Both schools have opportunities to act as a member of local community by delivering cards at seasonal occasions and performing Japanese songs at churches.
The exchange programmes with other schools have been conducted by the JSL in 2024. Visits from the Greek School, French School and SOAS were made, and our pupils visited SOAS.
The JSL also conducted Sports Day and Cultural Festival. Both were well attended and made parents impressed with their performance. The JSL’s whole school outing for drawings created lots of excellent pictures, which were exhibited during the Cultural Festival.
The weekly classes at the JSSL make its pupils stimulated in learning Japanese language and culture. One of the results of their years of leaning appears in their speeches at the graduation ceremony. Based on positive attitude learned in the British society, pupils deliver logical and heartful speeches with many thanks to their teachers and parents in a disciplined way.
Financial review
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
b. Reserves policy
Current reserves excluding revaluation reserve covers 2.3 times of annual expenditure. The Company plans school facility renovation projects over 5 years from 2023, the reserve level will be reduced by 10% in the coming 5 years, with a half of the renovation costs funded by annual result.
The reserve levels have increased significantly during 2021 due to the revaluation of the land and buildings owned by the School. The level of reserves represented by the revaluation is shown separately in note 16 and is included within unrestricted funds.
Reserves will be monitored regularly by the Trustees to ensure appropriate levels of reserves are held moving forward to ensure the long term stability of the charity.
c. Investments powers
The chairman of the committee is empowered to invest the funds of the school as the committee sees fit.
Page 4
THE JAPANESE SCHOOL LIMITED (A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
d. Principal risks and uncertainties
The charity’s financial position is sound, although the number of pupils are still 15% below the level in 2018, before COVID-19.
The Trustees review the risks posed to the charity regularly and have developed a system to mitigate any impact of the risk on the school. The main risks identified include meeting the demand for pupil places, retaining sufficient levels of skilled staff and ensuring the safeguarding of pupils at the school.
e. Principal funding
The charity’s principal sources of funds are tuition fees of the schools. The charity also receives income from the Japanese Government in the form of grants. The Japanese Government funds the salary costs of seconded Japanese teachers to the school as well as funding for specific purposes such as security, facilities management and rent.
Structure, governance and management
a. Constitution
The Japanese School Limited is registered as a charitable company limited by guarantee and was set up by a Trust deed.
b. Methods of appointment or election of Trustees
The trustees are elected from the members of the company at the Annual General Meeting in accordance with the Article 27 of the Memorandum and Articles of Association of the Japanese School Limited.
c. Financial risk management
The Trustees have assessed the major risks to which the Company is exposed, in particular those related to the operations and finances of the Company and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Page 5
THE JAPANESE SCHOOL LIMITED (A Company Limited by Guaranteel TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEM8ER 2024 Statement of Trnste. vesponslbllities The Trustees {vtho are al80 the dlredors of the Company for the purposes of company law) ale re8pon8iblo for preparing the Trustees, Report Indudlng the Strategi¢ Report and the financial statements In accordance ¥th applicable law and Unlted ngdOffl Accountlng Stsndards (Unlted lQngdom General Acceptsd Accounting Practice). Companylgw require8 the Tru$tee$ to prepaie finan1 statements for each flnanclal. Under Gompany law, the Tru8te88 mu8t not approve the Iln8ncl81 statements unles8 they are Sasfied that they glve a true and fair view of the $tste of affairs of the Company and of Its incoming Tesources and appllcatlon of resource8, includlng It6 Income and expend118, for that perlod. In preparing these financlal 8tatsment8, th8 Tru8tee8 ore requlred to- Select 8ultsble accounlng pollcles and then apply them consistenlly., ob8erve the methods and princlples ol Ihe Charities SORP {FRS 102); mak8 judgments and accounttng estlmates that are reasonable 8nd Pfudent., 8lats whelheT oppll¢able UK A¢countlng StantJ8rd8 (FRS 102) have beèn followed. 8ublect lo any materlal departur disclosed and explained in the financial 8tatem8nts', prepare the ffinanclal Statements on the going concèm ba618 unlè&8 It 6B inapproprfats to pre$ume that the Company wlll contsnue In buBlne80. The Trustee6 are responsibl• for keeplng adèquate accounting records that arè sufflclènt to 8how and explaln Ihe Company'g transa¢tion8 and disclose wilh reasonable accuracy at any time the ffnancial Position of the Company and enoble them to ensure that the financial Statements conyly wlth the Companies Act 2006. They •re also responslble for safvguarding the assets of the Company and hen for taklng reasonable step8 for the preventlon and delectton of fraud and other irregularft4•8. Ol•clDWrn of Inlorniatlon to auditor Each of Ihe persons vtho are Tru8tee8 at the Ilme en thls TruBteeB' Report 13 approved hau conflrmed that: 80 lar a8 that Trustee 16 aware, there b6 no relevant audt Inlormalon of vthlch the chaYlty8 audltor 18 unaware, and that Tru8tee has tsken all the 8tep8 that ouoht to have been taken as a Tntstee In order to be aware of any ielevanl audit information and to establish that the charitys auditor is aware of that inforFnation. Auditor The audllor, Ha8ler8, ha8 Indlcated h18 vAlllngne8S to contlnue In office. The de51gnated Tru8te08 Ylll prop08e motlon reappointing Ihe auditor at a meeting of the Trustee$. pproved by order of thg members ofthe board ofTru$tee& on 15 Jufy ZOZ5 and $igned on their bthalf by.. Mry Nakano (Chair of Truste Page 6
(A Company Limited by Guarantee)
THE JAPANESE SCHOOL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAPANESE SCHOOL LIMITED
Opinion
We have audited the financial statements of The Japanese School Limited (the 'charitable company') for the year ended 31 December 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the charitable company's affairs as at 31 December 2024 and of its incoming resources and application of resources, including its income and expenditure 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 Charities Act 2011.
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 responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 7
THE JAPANESE SCHOOL LIMITED
(A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAPANESE SCHOOL LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
-
the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; or
-
sufficient accounting records have not been kept; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are 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 Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company'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 Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Page 8
(A Company Limited by Guarantee)
THE JAPANESE SCHOOL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAPANESE SCHOOL LIMITED (CONTINUED)
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the company and industry, we identified that the principle risks of non-compliance with laws and regulations related to the UK Companies Act and employment regulation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to manipulation of results through manual journals or management bias in judgemental areas. Audit procedures performed by the engagement team included:
• Walkthrough testing was carried out to identify and assess the design effectiveness of controls management have in place to prevent and detect fraud, including known of suspected instances or non-compliance with laws and regulations and fraud,
• Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process,
• Using analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud,
• Assessing the appropriateness of accounting estimates and challenging any significant assumptions or judgements made by management,
• Incorporating testing of manual journal entries that were posted throughout the year. In particular, we focused on material journal entries, journal entries posted with unusual account combinations, and journal entries crediting revenue or cash. These were scrutinised for evidence of unusual entries,
• Evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
Page 9
THE JAPANESE SCHOOL LIMITED
(A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAPANESE SCHOOL LIMITED (CONTINUED)
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Haslers
Chartered Accountants Statutory Auditor Old Station Road Loughton Essex IG10 4PL 15 July 2025
Haslers are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 10
THE JAPANESE SCHOOL LIMITED
(A Company Limited by Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024
| Note Income from: Donations and legacies 3 Charitable activities 4 Investments 5 Total income Expenditure on: Charitable activities Total expenditure Net income Transfers between funds 15 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Restricted funds 2024 £ 1,337,797 76,042 - 1,413,839 1,378,107 1,378,107 35,732 (21,696) 14,036 5,553 14,036 19,589 |
Unrestricted funds 2024 £ 851 2,676,810 64,706 2,742,367 2,615,851 2,615,851 126,516 21,696 148,212 14,139,834 148,212 14,288,046 |
Total funds 2024 £ 1,338,648 2,752,852 64,706 4,156,206 3,993,958 3,993,958 162,248 - 162,248 14,145,387 162,248 14,307,635 |
Total funds 2023 £ 1,266,958 2,557,337 58,417 |
|---|---|---|---|---|
| 3,882,712 | ||||
| 3,497,806 | ||||
| 3,497,806 | ||||
| 384,906 - |
||||
| 384,906 | ||||
| 13,760,481 384,906 |
||||
| 14,145,387 |
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 14 to 30 form part of these financial statements.
Page 11
THE JAPANESE SCHOOL LIMITED IA Company Limited by Guarantee) REGISTERED NUMBER: 01263742 BALANCE SHEET AS AT 31 DECEMBER 2024 2024 2023 Fixed as••t$ Tangible assets Invesknent property 10 11 ,794,487 3,2450,000 8,6Ta441 3,250,000 12,044,487 11,928,441 CUrrt assots Dobto Ga8h 8t bank and In hgnd 12 431,864 2,191,167 343,f22 2,328,520 2M23,731 2,6TI,642 Creditors: amounts falllng due wlthln on• year 13 (356.6WJ curr•nt assets 2,376,720 2,314,982 Total assets 1885 curr•fftt lbIllI1•S 14,420,207 (112,5T2 14,243,423 ov181onB for Ilabllltle8 14 (98,038J ToL*l n•t v••ts 14,307,635 14,145,387 Charlty fund$ Rethct•d ndS Unrethcted fund8 15 15 19,889 14.288,046 5,553 14,139, 834 Total fundB 14.307.635 74,145,387 The TfU8tees ackn0&dge thoir responsiblibes for ¢omplying with the requlrements of the Act wlth respect to a¢Unting reoord¥ and preparation of finan£4al ststements. The financial statements were apwoved and aLthorf8ed for188u• by the Tw8tees on IS July 2025 and Signed on their behalf by= Mr Y Nakano (Chair of Trustg9$) The notes on pages 14 to 30 form part ofthese ffinan(aal ststements. Page 12
THE JAPANESE SCHOOL LIMITED
(A Company Limited by Guarantee)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
| Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible fixed assets Net cash used in investing activities Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 14 to 30 form part of these financial statements |
2024 £ 57,548 64,706 (258,907) (194,201) - (136,653) 2,328,520 2,191,867 |
2023 £ 269,139 58,416 (163,460) (105,044) - 164,095 2,164,425 2,328,520 |
|---|---|---|
Page 13
THE JAPANESE SCHOOL LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. General information
The Japanese School Limited is a charitable company, limited by guarantee, in England and Wales. The registered charity number is 271665 and the registered company number is 01263742. The registered address is 87 Creffield Road, Acton, London, W3 9PU. The principal activity of the charity is providing education.
2. Accounting policies
2.1 Basis of preparation
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Japanese School Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The financial statements are presented in Pound Sterling, the functional currency of the charity, rounded to the nearest £.
2.2 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
2.3 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.
Page 14
THE JAPANESE SCHOOL LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
2. Accounting policies (continued)
2.4 Government grants
Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of Financial Activities as the related expenditure is incurred.
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.6 Tangible fixed assets and depreciation
Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the revaluation model, tangible fixed assets whose fair value can be measured reliably (Freehold property) shall be carried at a revalued amount, being their fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting date.
Fair values are determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers. If there is no market-based evidence of fair value because of the specialised nature of the tangible fixed asset and it is rarely sold, except as part of a contributing business, a Company may need to estimate fair value using an income or depreciated replacement cost approach.
Gains and losses on revaluation are recognised in the Statement of Financial Activities, with a separate revaluation reserve being shown in the Statement of funds note.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
- Freehold property 50 years straight line - Furniture and equipment 5 years straight line - Leasehold Improvements 10 years straight line
2.7 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Page 15
THE JAPANESE SCHOOL LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
2. Accounting policies (continued)
2.8 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.9 Liabilities
Liabilities and provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
2.10 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.11 Operating leases
Rentals payable under operating leases are accounted for on a straight-line basis over the periods of the lease.
2.12 Pensions
The Company operates a defined contribution pension scheme. The cost of providing these benefits is charged to the profit and loss account on a regular basis.
2.13 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 16
THE JAPANESE SCHOOL LIMITED
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
2. Accounting policies (continued)
2.14 Provisions
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
3. Income from donations and legacies
| Donations Government grants Total 2023 |
Restricted funds 2024 Unrestricted funds 2024 £ £ 218 851 1,337,579 - 1,337,797 851 1,265,600 1,358 |
Total funds 2024 £ 1,069 1,337,579 1,338,648 1,266,958 |
Total funds 2023 £ 1,358 1,265,600 |
|---|---|---|---|
| 1,266,958 | |||
4. Income from charitable activities
| Fee income Other income Rental income Bus income School Trip income Total 2023 |
Restricted funds 2024 Unrestricted funds 2024 £ £ - 2,510,920 - 19,576 - 62,066 76,042 - - 84,248 76,042 2,676,810 95,750 2,461,587 |
Total funds 2024 £ 2,510,920 19,576 62,066 76,042 84,248 2,752,852 2,557,337 |
Total funds 2023 £ 2,323,735 32,989 61,350 95,750 43,513 |
|---|---|---|---|
| 2,557,337 | |||
Page 17
THE JAPANESE SCHOOL LIMITED
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
| 5. Investment income Unrestricted funds 2024 £ Bank interest 64,706 Total 2023 58,417 6. Analysis of expenditure by activities |
Total funds 2024 £ 64,706 58,417 |
Total funds 2023 £ 58,417 |
|---|---|---|
| Educational operations Total 2023 Analysis of direct costs Staff costs Educational supplies & stationary Healthcare School events Travel Carriage School Trips Bus fees |
Activities undertaken directly 2024 £ 2,485,136 2,350,847 |
Support costs 2024 £ 1,508,822 1,146,960 |
Total funds 2024 £ 3,993,958 3,497,807 Total funds 2024 £ 2,113,694 152,442 37,471 7,386 25,159 383 80,043 68,558 2,485,136 |
Total funds 2023 £ 3,497,807 |
|---|---|---|---|---|
| Total funds 2023 £ 1,975,545 123,282 35,207 6,697 57,103 12,008 41,081 99,924 |
||||
| 2,350,847 |
Page 18
THE JAPANESE SCHOOL LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
6. Analysis of expenditure by activities (continued)
Analysis of support costs
| Staff costs Depreciation Equipment leasing and rent Maintenance Sundry Expenses Professional Fees Security Audit Fee Light, heat and water Cleaning Insurance Rates IT support & Telephone Entertainment Food Auditor's remuneration Fees payable to the Company's auditor for the audit of the Company's annual accounts Fees payable to the Company's auditor in respect of: Advisory Services |
Total funds 2024 £ 309,472 142,861 90,305 159,303 2,495 370,108 73,945 21,600 128,119 39,174 40,381 35,026 94,705 259 1,069 1,508,822 2024 £ 21,600 19,800 |
Total funds 2023 £ 303,652 91,317 91,442 79,379 38,986 160,783 58,616 19,900 95,299 37,041 41,786 30,777 96,725 265 992 |
|---|---|---|
| 1,146,960 | ||
| 2023 £ 19,900 43,880 |
7. Auditor's remuneration
Page 19
(A Company Limited by Guarantee)
THE JAPANESE SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
8. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2024 £ 2,306,094 80,075 36,997 2,423,166 |
2023 £ 2,107,937 117,652 53,609 |
|---|---|---|
| 2,279,198 |
Included in wages and salaries is secondment staff costs totalling £999,193 (2023: £966,694) which is paid by the Japanese Government directly to the individuals. These staff members are therefore excluded from the average number of employees.
The average number of persons employed by the Company during the year was as follows:
| Leadership Teachers Admin staff |
2024 No. 1 86 7 94 |
2023 No. 1 86 7 |
|---|---|---|
| 94 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| 2024 | 2023 | ||
|---|---|---|---|
| No. | No. | ||
| In the band £80,001 | - £90,000 | 1 | 1 |
The total cost of the key management personnel including employers national insurance contributions amounted to £86,769 (2023: £84,303).
9. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2023 - £NIL) .
During the year ended 31 December 2024, no Trustee expenses have been incurred (2023 - £NIL) .
Page 20
THE JAPANESE SCHOOL LIMITED
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
10. Tangible fixed assets
| Cost or valuation At 1 January 2024 Additions At 31 December 2024 Depreciation At 1 January 2024 Charge for the year At 31 December 2024 Net book value At 31 December 2024 At 31 December 2023 |
Freehold property £ 8,250,000 - 8,250,000 74,000 37,000 111,000 8,139,000 8,176,000 |
Office equipment £ 267,371 159,369 426,740 149,375 60,231 209,606 217,134 117,996 |
Other fixed assets £ 422,624 99,538 522,162 38,179 45,630 83,809 438,353 384,445 |
Total £ 8,939,995 258,907 |
|---|---|---|---|---|
| 9,198,902 | ||||
| 261,554 142,861 |
||||
| 404,415 | ||||
| 8,794,487 | ||||
| 8,678,441 |
The valuation of land and buildings was completed by the directors on a market value basis.
The Company has adopted a policy of revaluation for tangible fixed assets. Had these assets been measured at historic cost, the carrying values would have been as follows:
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Freehold property | 3,312,689 | 3,312,689 |
Page 21
THE JAPANESE SCHOOL LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
11. Investment property
| Valuation At 1 January 2024 At 31 December 2024 |
Freehold investment property £ 3,250,000 |
|---|---|
| 3,250,000 |
The valuation was completed by the directors on a market value basis.
12. Debtors
| Due within one year Other debtors Prepayments and accrued income Grants receivable Creditors: Amounts falling due within one year Trade creditors Other taxation and social security Other creditors Accruals and deferred income |
2024 £ 80,276 92,397 259,191 431,864 2024 £ 67,413 32,551 1,500 146,547 248,011 |
2023 £ 5,049 103,899 234,174 |
|---|---|---|
| 343,122 | ||
| 2023 £ 67,859 27,942 1,500 259,359 |
||
| 356,660 |
13. Creditors: Amounts falling due within one year
Page 22
(A Company Limited by Guarantee)
THE JAPANESE SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
| Deferred income at 1 January 2024 Resources deferred during the year Amounts released from previous periods Deferred income at 31 December |
2024 £ 181,274 84,302 (181,274) 84,302 |
2023 £ 297,216 181,274 (297,216) 181,274 |
|---|---|---|
Deferred income represents school fees received in advance for future academic periods. These fees are initially recorded as a liability and recognised as income over the period to which they relate.
14. Provisions
| At 1 January 2024 Additions Amounts used |
Retirement benefit obligation £ 98,036 11,276 3,260 |
|---|---|
| 112,572 |
The retirement benefit obligation has arisen as a result of an obligation to pay staff when they leave employment with the Japanese School.
Page 23
THE JAPANESE SCHOOL LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
15. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds Revaluation reserve Restricted funds Seconded staff Aging Facility Safety/Security Facilities Security Staff Costs - Japanese School Security Staff Costs - Saturday School Teachers costs - Japanese School Lecturers costs - Saturday School Erabareru Zaidan Rent for Saturday School campus Bus Fees PTA Donations Total of funds |
Balance at 1 January 2024 £ 6,101,167 8,038,667 14,139,834 - - - - - - - - - - 5,553 - 5,553 14,145,387 |
Income £ 2,742,367 - 2,742,367 999,193 17,614 12,212 33,248 16,622 46,021 98,629 50,031 30,441 33,568 76,042 218 1,413,839 4,156,206 |
Expenditure £ (2,615,851) - (2,615,851) (999,193) (17,614) (12,212) (33,248) (16,622) (46,021) (98,629) (50,031) (2,411) (33,568) (68,558) - (1,378,107) (3,993,958) |
Transfers in/out £ 21,696 - 21,696 - - - - - - - - (28,030) - - 6,334 (21,696) - |
Balance at 31 December 2024 £ 6,249,379 8,038,667 |
|---|---|---|---|---|---|
| 14,288,046 | |||||
| - - - - - - - - - - 13,037 6,552 |
|||||
| 19,589 | |||||
| 14,307,635 |
Page 24
THE JAPANESE SCHOOL LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
15. Statement of funds (continued)
Seconded staff: A number of the key management personnel and other staff are paid directly by the Japanese Government.
Aging facility: This fund is to contribute to the cost of repairing the old building facilities at The Japanese School.
Safety/Security facilities: This fund is to contribute to the maintenance cost of security and safety equipment at The Japanese School.
Security Staff Costs - Japanese School: This fund is to contribute to the security staff costs at The Japanese School.
Security staff costs - Saturday school: This fund is to contribute to the security staff costs at the Saturday school.
Teachers costs - Japanese School: This fund is to contribute to the salary of teachers at The Japanese School.
Lecturers costs - Saturday School: This fund is to contribute to the salary of the lecturers at the Saturday school.
Erabareru: A government grant for the English programmes, which aim to promote pupils' knowledge and understanding of British values, culture, and history to improve the pupils international minds.
Zaidan: This fund is to contribute to School supplies. A transfer has occurred during the year due to restricted funds being spent on capital items.
Rent for Saturday school campus: This fund is a contribution to fund the rent of the school premises used by the Saturday school in Brent and Croydon.
Bus fees: A bus service is provided by The Japanese School to transport students to and from school each day.
Revaluation reserve: This fund relates to the revaluation of the School building and related properties owned by the Charity.
PTA Donations : Donations from the Parent Teachers Association were collect and donated for the purpose of purchasing commemorative gifts for the school's 50th anniversary.
Page 25
THE JAPANESE SCHOOL LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
| 15. Statement of funds (continued) Statement of funds - prior year Unrestricted funds General Funds Revaluation reserve Restricted funds Seconded staff Aging Facility Safety/Security Facilities Security Staff Costs - Japanese School Security Staff Costs - Saturday School Teachers costs - Japanese School Lecturers costs - Saturday School Erabareru Rent for Saturday School campus Bus Fees Total of funds |
Balance at 1 January 2021 £ 5,712,089 8,038,667 13,750,756 - - - - - - - - - 9,725 9,725 13,760,481 |
Income £ 2,521,362 - 2,521,362 966,694 27,608 12,025 36,638 12,355 66,428 79,896 33,473 30,482 95,751 1,361,350 3,882,712 |
Expenditure £ Balance at 31 December 2023 £ (2,132,284) 6,101,167 - 8,038,667 (2,132,284) 14,139,834 (966,694) - (27,608) - (12,025) - (36,638) - (12,355) - (66,428) - (79,896) - (33,473) - (30,482) - (99,923) 5,553 (1,365,522) 5,553 (3,497,806) 14,145,387 |
Expenditure £ Balance at 31 December 2023 £ (2,132,284) 6,101,167 - 8,038,667 (2,132,284) 14,139,834 (966,694) - (27,608) - (12,025) - (36,638) - (12,355) - (66,428) - (79,896) - (33,473) - (30,482) - (99,923) 5,553 (1,365,522) 5,553 (3,497,806) 14,145,387 |
|---|---|---|---|---|
| 14,139,834 | ||||
| - - - - - - - - - 5,553 |
||||
| 5,553 | ||||
| 14,145,387 |
Page 26
THE JAPANESE SCHOOL LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
16. Summary of funds
Summary of funds - current year
| Balance at 1 January 2024 £ General funds 14,139,834 Restricted funds 5,553 14,145,387 Summary of funds - prior year General funds Restricted funds |
Income £ Expenditure £ 2,742,367 (2,615,851) 1,413,839 (1,378,107) 4,156,206 (3,993,958) Balance at 1 January 2023 £ Income £ 13,750,756 2,521,362 9,725 1,361,350 13,760,481 3,882,712 |
Transfers in/out £ Balance at 31 December 2024 £ 21,696 14,288,046 (21,696) 19,589 - 14,307,635 Expenditure £ Balance at 31 December 2023 £ (2,132,284) 14,139,834 (1,365,522) 5,553 (3,497,806) 14,145,387 |
Transfers in/out £ Balance at 31 December 2024 £ 21,696 14,288,046 (21,696) 19,589 - 14,307,635 Expenditure £ Balance at 31 December 2023 £ (2,132,284) 14,139,834 (1,365,522) 5,553 (3,497,806) 14,145,387 |
|---|---|---|---|
| 14,307,635 | |||
| Balance at 31 December 2023 £ 14,139,834 5,553 |
|||
| 14,145,387 |
17. Analysis of net assets between funds
Analysis of net assets between funds - current period
| Tangible fixed assets Investment property Current assets Creditors due within one year Provisions for liabilities and charges Total |
Restricted funds 2024 Unrestricted funds 2024 £ £ - 8,794,487 - 3,250,000 19,589 2,604,142 - (248,011) - (112,572) 19,589 14,288,046 |
Total funds 2024 £ 8,794,487 3,250,000 2,623,731 (248,011) (112,572) |
|---|---|---|
| 14,307,635 |
Page 27
(A Company Limited by Guarantee)
THE JAPANESE SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
17. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior period
| Tangible fixed assets Investment property Current assets Creditors due within one year Provisions for liabilities and charges Total |
Restricted funds 2023 £ - - 5,553 - - 5,553 |
Unrestricted funds 2023 £ 8,678,441 3,250,000 2,666,089 (356,660) (98,036) 14,139,834 |
Total funds 2023 £ 8,678,441 3,250,000 2,671,642 (356,660) (98,036) 14,145,387 |
|---|---|---|---|
| 18. Reconciliation of net movement in funds to net cash flow from operating activities 2024 £ Net income for the period (as per Statement of Financial Activities) 162,248 Adjustments for: Depreciation charges 142,861 Dividends, interests and rents from investments (64,706) Increase in debtors (97,018) Decrease in creditors (124,361) Movement in provisions 14,538 Net cash provided by operating activities 33,562 19. Analysis of cash and cash equivalents 2024 £ Cash in hand 2,191,867 Total cash and cash equivalents 2,191,867 |
2023 £ 384,906 91,316 (58,416) (78,220) (88,987) 18,541 269,140 2023 £ 2,328,520 2,328,520 |
|---|---|
Page 28
THE JAPANESE SCHOOL LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
20. Analysis of changes in net debt
| Cash at bank and in hand | At 1 January 2024 £ 2,328,520 2,328,520 |
Cash flows £ (136,653) (136,653) |
At 31 December 2024 £ 2,191,867 |
|---|---|---|---|
| 2,191,867 |
21. Pension commitments
The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independent administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £36,997 (2023: £32,741). Contributions totalling £Nil (2023: £Nil) were payable to the fund at the balance sheet date and are included in creditors.
22. Operating lease commitments
At 31 December 2024 the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
| Operating leases which expire: Within 1 year Within 2-5 years |
2024 £ 11,719 15,603 27,322 |
2023 £ 7,292 15,603 |
|---|---|---|
| 22,895 |
23. Members' liability
Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £NIL for the debts and liabilities contracted before he/she ceases to be a member.
Page 29
THE JAPANESE SCHOOL LIMITED
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
24. Related party transactions
During the year, Nippon Club Limited, a company which a trustee is a director of, provided hire of facilities for £611 (2023: £1,144). Additionally, Canon Europe Ltd, a company which a trustee is a director of, provided equipment rental for £4,887 (2023: £5,684). Tokio Marine & Nichido Fire Insurance Co. ltd, a company of which a trustee is a director, provided insurance services for £38,266 (2023: £43,615).
During the year, The Japanese School received rental income from trustees £20,187 (2023: £21,600).
During the year, The Japanese School received school fees from trustees totalling £2,544 (2023: £2,515).
At the year end there was a balance outstanding with a trustee of £5,070 (2023: £Nil) for expenses paid on behalf of the trustee, to be reclaimed within 12 months.
Page 30