In the application of the company’s accounting policies, the directors are required to make judgements, 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 current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The management charge is calculated based upon time spent by employees of Smart Works Charity on the management of Smart Works Trading Limited. The days are charged based on the employee's gross pay.
Smart Works Trading Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1, Canonbury Yard, 202-208 New North Road, London, N1 7BJ.
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 £.
Revenue from a contract in relation to sponsorship for goods sold is recognised in the period in which the goods are sold in accordance with the terms of the contract.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Gift Aid Donation and tax relief thereon
Profits made by Smart Works Trading Limited are donated to the parent charity, Smart Works Charity. As per the recent clarification to FRS102 provided in the Financial reporting Council's "Amendments to FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Triennial review 2017", an expected gift aid payment is not to be accrued unless a legal obligation to make the payment exists at the reporting date. The donation of profits from Smart Works Trading Limited is therefore reflected in the year in which the payment of the profits is made from the subsidiary to the parent entity.
The average monthly number of persons (including directors) employed by the company during the year was nil (
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The ultimate controlling party is Smart Works Charity, a company incorporated in the United Kingdom limited by Guarantee and a registered charity. Smart Works Charity is the Company's immediate and ultimate parent undertaking. Consolidated accounts are available from Smart Works Charity by writing to their registered office. The Smart Works Charity registered office is Unit 1, Canonbury Yard, 202-208 New North Road, London N1 7BJ.
The company has taken advantage of the exemption in FRS 102 from disclosing transactions with other members of the group.