Company registration number 04913846 (England and Wales)
ASSURED FOOD STANDARDS
Financial Statements
For The Year Ended 31 March 2023
Pages For Filing With Registrar
Assured Food Standards
ASSURED FOOD STANDARDS
Independent Auditor's Report
To The Members Of Assured Food Standards
Opinion
We have audited the financial statements of Assured Food Standards (the 'company') for the year ended 31 March 2023 which comprise , the balance sheet and notes to the financial statements, including 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 company's affairs as at 31 March 2023 and of its surplus for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and 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 directors' 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 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 directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
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Assured Food Standards
ASSURED FOOD STANDARDS
Independent Auditor's Report (Continued)
To The Members Of Assured Food Standards
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors 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 directors 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 directors are responsible for assessing the 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a 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:
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing the inherent limitations of an audit, there is an unavoidable risk that material misstatements in in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
The primary responsibility for the prevention and detection of fraud rests remains with both those charged with governance of the company and management.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedure included the following:
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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Assured Food Standards
ASSURED FOOD STANDARDS
Independent Auditor's Report (Continued)
To The Members Of Assured Food Standards
- Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
- Understanding how those charged with governance considered and addressed the potential override of controls or other inappropriate influence over the financial reporting process;
- Challenging assumptions and judgments made by management in its significant accounting estimates;
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations and for unusual or large amounts.
- Assessing the extent of compliance with the relevant laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Benjamin Wilkinson BSc FCA
Senior Statutory Auditor
For and on behalf of Chavereys Audit Limited
24 July 2023
Chartered Accountants
Statutory Auditor
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
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Assured Food Standards
ASSURED FOOD STANDARDS
Balance Sheet
As At 31 March 2023
31 March 2023
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
25,873
29,753
Tangible assets
4
58,876
120,865
84,749
150,618
Current assets
Debtors
6
2,206,433
1,485,866
Cash at bank and in hand
3,860,060
3,508,201
6,066,493
4,994,067
Creditors: amounts falling due within one year
7
(4,716,376)
(3,761,867)
Net current assets
1,350,117
1,232,200
Total assets less current liabilities
1,434,866
1,382,818
Provisions for liabilities
(11,852)
(22,713)
Net assets
1,423,014
1,360,105
Capital and reserves
Profit and loss account
1,423,014
1,360,105
Total equity
1,423,014
1,360,105
The notes on pages 5 to 9 form part of these financial statements.
The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 21 July 2023 and are signed on its behalf by:
J G Moseley (Chief executive)
Director
Company Registration No. 04913846
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Assured Food Standards
ASSURED FOOD STANDARDS
Notes To The Financial Statements
For The Year Ended 31 March 2023
1
Accounting policies
Company information
Assured Food Standards is a private company limited by guarantee incorporated in England and Wales. The registered office is The Goods Shed, Jubilee Way, Faversham, England, ME13 8GD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover comprises revenue recognised by the company in respect of the use by third parties of its assurance standards and protocols, received in the form of royalties, licence fees and support payments from industry bodies. Turnover is exclusive of Value Added Tax.
Revenue is recognised as follows:
- Royalties are recognised in full on the date of approval by a valid certification body of a third-party application to join one of the Red Tractor's assurance schemes.
- Licence fees are recognised on an accruals basis over the scheme year to which they relate.
- Support payments are recognised over the period of operation to which they relate, as stipulated by the donor.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the asset is amortised on the following basis:
Patents and trademarks
10% straight line
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Assured Food Standards
ASSURED FOOD STANDARDS
Notes To The Financial Statements (Continued)
For The Year Ended 31 March 2023
1
Accounting policies
(Continued)
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the company assess whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold property
20% straight line
Fixtures and fittings
20% straight line
Computers
20-50% straight line
Telecommunications
33% straight line
1.5
Taxation
The tax charge represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.6
Retirement benefits
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in the profit or loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
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Assured Food Standards
ASSURED FOOD STANDARDS
Notes To The Financial Statements (Continued)
For The Year Ended 31 March 2023
1
Accounting policies
(Continued)
1.7
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.8
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
38
36
3
Intangible fixed assets
Patents and trademarks
£
Cost
At 1 April 2022 and 31 March 2023
38,798
Amortisation and impairment
At 1 April 2022
9,045
Amortisation charged for the year
3,880
At 31 March 2023
12,925
Carrying amount
At 31 March 2023
25,873
At 31 March 2022
29,753
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Assured Food Standards
ASSURED FOOD STANDARDS
Notes To The Financial Statements (Continued)
For The Year Ended 31 March 2023
4
Tangible fixed assets
Leasehold property
Fixtures and fittings
Computers
Telecommunications
Total
£
£
£
£
£
Cost
At 1 April 2022
21,872
119,207
122,837
9,476
273,392
Additions
11,039
11,039
Disposals
(21,872)
(118,477)
(789)
(1,702)
(142,840)
At 31 March 2023
730
133,087
7,774
141,591
Depreciation and impairment
At 1 April 2022
14,861
80,353
50,315
6,998
152,527
Depreciation charged in the year
24,667
1,992
26,659
Eliminated in respect of disposals
(14,861)
(79,623)
(285)
(1,702)
(96,471)
At 31 March 2023
730
74,697
7,288
82,715
Carrying amount
At 31 March 2023
58,390
486
58,876
At 31 March 2022
7,011
38,854
72,522
2,478
120,865
5
Fixed asset investments
The company continued to be sole member and guarantor, therefore 100% controlling parent, of Red Tractor Food Assurance Limited. No consideration was paid to secure membership so the investment is carried at £nil cost. The subsidiary company has net assets of £nil and was dormant throughout the year ended 31 March 2023.
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,143,186
1,050,808
Other debtors
15,390
183
Prepayments and accrued income
1,047,857
434,875
2,206,433
1,485,866
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
799,243
393,219
Corporation Tax
22,461
Other taxation and social security
459,914
473,904
Accruals and deferred income
3,434,758
2,894,744
4,716,376
3,761,867
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Assured Food Standards
ASSURED FOOD STANDARDS
Notes To The Financial Statements (Continued)
For The Year Ended 31 March 2023
8
Pension commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension charge for the year represents contributions payable by the company to the fund and amounted to £240,0249 (2022 - £98,869). Payments of £nil (2022 - £nil) were outstanding at the balance sheet date.
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
11,852
25,593
Tax losses
(2,880)
11,852
22,713
2023
Movements in the year:
£
Liability at 1 April 2022
22,713
Credit to the profit and loss account
(10,861)
Liability at 31 March 2023
11,852
10
Members' liability
The company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.
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