| Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Included within Bank borrowings and overdrafts is a Government Bounce Back loan totalling £4,000 (2023 £4,000) which is denominated in sterling. There are no fees or interest payable for the first 12 months, and thereafter the loan carries a nominal interest rate of 2.5%. The loan is repayable over 6 years, with no repayments in the first year, and with the final instalment due in May 2026.
The overall carrying value of the loan as at the year-end is £8,665 (2023 £12,666). |