FLEX POWER TOOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Flex Power Tools Limited is a private company, limited by shares, incorporated in England and Wales. The registered office address is Unit 8 Anglo Office Park, Lincoln Road, High Wycombe, Buckinghamshire, England, HP12 3RH.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historic cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A Financial Reporting Standard FRS102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The company is dependent on not having to repay amounts owed to other group companies unless cash flow permits.
Management have relied upon a letter of support from Flex Elektrowerkzeuge GmbH (the immediate parent company) which confirms that repayment of intercompany liabilities will not be requested if this could impact the ability of Flex Power Tools Limited to continue as a going concern. In the event that Flex Elektrowerkzeuge GmbH was unable to provide the level of support required, management have also received a letter of support from Chervon Holdings Ltd (the ultimate parent company) for continuing financial assistance to Flex Power Tools Limited if required. These support letters cover a period of no less than 12 months from the date of the approval of these financial statements.
The company continues to adopt the going concern basis in preparing its financial statements.
Turnover relates to sales made on behalf of other group entities during the year. During the year gross income of £1,658,050 was received by Flex Power Tools Limited in its capacity as agent on behalf of group companies.
Flex Power Tools Limited is acting in the role of an agent on behalf of its parent entity Flex Elektrowerkzeuge GmbH. The parent is exposed to the risk and reward associated with each sale, holds all inventory and takes responsibility for invoicing and delivering goods. This has resulted in net income of £486,693 being recognised at year end, with the associated cost of sales recognised at nil.
Revenue is recognised in accordance with the transfer of promised goods to customers, which is satisfied on delivery.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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