Virtuality Limited is a private company limited by shares incorporated in England and Wales. The registered office is 82 St John Street, London, England, EC1M 4JN.
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 company's financial statements are prepared on the going concern basis. The company is dependent on the future support of its creditors and shareholders. This support is dependent on the company operating profitably in the future and generating funds in order to maintain its relationship with creditors. The directors have considered a period of twelve months from this date and, despite the company having negative profit and loss reserves of -£488,978 at the reporting date, are satisfied that the company will operate successfully and generate sufficient funds in order to trade out of its current trading position. The directors and shareholders have also confirmed their own support to the company for the foreseeable future.
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 and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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 average monthly number of persons employed by the company during the year was:
At the balance sheet date, the company was owed £38,000 (2021: £38,000) by Edufit Training Limited, a company deemed to be a related party by virtue of common control.
At the balance sheet date, the company owed £400,393 (2021: £404,060) to Crosswood Development Limited, £2,400 (2021: £2,400) to Graphene Creative Limited and £5,813 (2021: £1,913) to Hiup Limited. All companies are deemed related parties by virtue of common control.
At the balance sheet date, the company owed £109,104 (2021: £109,104) to J Robinson, a member of the key management personnel. No interest is applied on this loan balance.
Included within other debtors is a balance of £18 (2021: £18) owed by the Brendan Kavanagh, a director of the company.