Company registration number 05716642 (England and Wales)
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
COMPANY INFORMATION
Directors
Mr P K Mukundan
Mr M C Howlett
Mr C F Mody
Mr E Jolivet
Mrs J A Knights
Mr D J Cuckney
Secretary
Mr M C Howlett
Company number
05716642
Registered office
Cinnabar Wharf
26 Wapping High Street
London
E1W 1NG
Auditor
Gravita Audit II Limited
66 Prescot Street
London
E1 8NN
Business address
Cinnabar Wharf
26 Wapping High Street
London
E1W 1NG
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

CCS is a company limited by guarantee providing advice to businesses around the world on the prevention and response to commercial crime and malpractice. The sectors in which it provides this advice include shipping, trade, trade finance, banking and intellectual property. It also runs FraudNet, a network of lawyers in around 70 countries specialising in recovery of losses due to fraud.

CCS meets its day to day working capital requirements from its own cash flow.

94% of its income comes from membership subscription. Other income streams include investigations and conferences.

CCS’s turnover was £4.080m in 2023 compared to £4.089m in 2022. Nonetheless, the 2023 surplus increased to £743k compared to £61k in 2022. The reduced 2022 surplus was due to an exceptional investment loss that gained in value and contributed to the 2023 results.

In the years leading up to 2015, CCS had seen a significant increase in its business which it managed within existing infrastructure and resources. In order to continue to meet service standards to clients it was necessary to upgrade its infrastructure and resources. Expenditure has increased since 2017 as a result. The key items of increased expenditure were increase in staff costs and IT infrastructure costs, and the increase in associated costs of creating a third office in Dubai.

Despite the unprecedented increase in the business over the past years, the Board of CCS remain of the view that the business may not continue to rise in the medium term. Turnover declined slightly by 0.22% compared to 2022, with administrative expenses rising by 7.22%. The Board intends that CCS will always operate at a surplus and will fund its expenses through its cash flow.

Credit control is closely monitored and managed. Our membership income is largely invoiced in advance of the subscription period and all subscriptions are closely monitored. All major items of expenditure and most other expenses are all approved by the members of the Board.

In March 2018 CCS received its ISO 27001/2013 certification and CCS passed its fifth external annual audit in March 2023. The ISO standard was revised in late 2022 and CCS was assessed as ISO 27001/2022 compliant in August 2023.

Given all the circumstances, the Board is satisfied with the financial performance of CCS but continues to seek new areas for diversification.

Principal risks and uncertainties

One of CCS’s important contributors to its revenue has been the provision of advice on the fraud risk in trade finance. This has been driven by enforcement of regulation in countries where CCS clients operate. It is expected that the regulations will remain in place or be strengthened. Nevertheless, with severe competition in trade finance for its clients, CCS clients are constantly looking to reduce costs in an increasingly digital and uncertain world. This will impact the CCS business model.

Other general factors of risk remain:

  1. Technology. FinTech and RegTech products, and new disruptive technologies such as Blockchain threaten the traditional ways in which trade finance is done.

  2. Staff. As with all similar organisations, fully trained competent staff are key to the smooth operation of CCS’s business. A loss of a significant number of important members of the CCS team could have an adverse impact on its performance in the short term.

  3. Uncertainty over China trade volumes. CCS clients based in Asia providing trade finance have been affected by the downturn in volumes of trade into and out of China. This has led to a reduction in the compliance work referred to CCS by these banks.

  4. There had been a short term impact on business volumes as the impact of the COVID-19 virus and general uncertainty spread globally.

  5. Geo-political risk. Uncertainties caused by the ongoing tensions in Ukraine and the Middle East.

ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Development and performance

The provision of due diligence services to banks are evolving with new online platforms being tested and improved. CCS recognises that there are challenges ahead and is developing its own plans to counter this by offering fully integrated solutions to members.

Legal and compliance

CCS is advised by professional advisors on employment, health, governance and safety matters. It maintains its procedures, contracts and working environment in compliance with their advice.

In addition, CCS is subject to various UK and EU legal and compliance regulations. CCS takes its responsibilities in this area seriously and ensures that its policies, systems and processes are continually updated to comply with legal requirement in the sectors it operates in.

Mr M C Howlett
Director
19 April 2024
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of providing advice to businesses around the world, on the prevention and response to commercial crime and malpractice.

Branches

The company has two branches, ICC International Maritime Bureau (Far East Regional Office), which is based in Kuala Lumpur and ICC Commercial Crime Services DMCC, which is based in Dubai.

Results and dividends

The results for the year are set out on page 9.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr P K Mukundan
Mr M C Howlett
Mr C F Mody
Mr E Jolivet
Mrs J A Knights
Mr D J Cuckney
Financial instruments
Treasury operations and financial instruments

The company’s principal financial instruments include investments, cash at bank and in hand, and bank loans, the main purpose of which is to raise finance for the company’s operations. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations.

Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The company is exposed to fair value interest rate risk on its fixed and floating rate bank deposits.

Foreign currency risk

The company’s principal foreign currency exposures arise from the operation of its overseas branches and its trading with overseas companies.

Credit risk

Investments of cash surpluses are made through investment houses and banks, which must fulfil credit rating criteria approved by the board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Research and development

The company has a dedicated quality control and research department. It looks at current trends in shipping and trade risks, primarily this is aimed at analysis of the growing CCS database. The results of the analysis are fed back to clients via bulletins and quarterly reports. CCS's IT platforms are regularly updated based upon feedback from clients and other users.

ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Post reporting date events

There are no post reporting date events.

Future developments

The company expects to continue providing its current services to its members. It closely reviews the areas of risk to its business, which may be caused by factors outside of its control. The company is looking to develop new services to the shipping and trading environment.

Auditor

In accordance with the company's articles, a resolution proposing that Gravita Audit II Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr M C Howlett
Director
19 April 2024
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
- 5 -
Opinion

We have audited the financial statements of ICC Commercial Crime Services (a Company Limited by Guarantee) (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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:

Basis for opinion

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.

Other information

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:

ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
- 6 -
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 strategic report or 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:

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
- 7 -

We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the company were identified through discussions with directors and other management, and from our commercial knowledge and experience of ICC Commercial Crime Services Limited. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the company, including the Health and Safety at Work etc Act 1974, The Management of Health and Safety at Work Regulations 1999, Companies Act 2006, Coronavirus Act 2020, taxation legislation, data protection, anti-bribery, anti-money-laundering, employment and environmental legislation. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Use of our 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.

ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
- 8 -
Robin Davis
Senior Statutory Auditor
For and on behalf of Gravita Audit II Limited
19 April 2024
Chartered Accountants
Statutory Auditor
66 Prescot Street
London
E1 8NN
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Income
3
4,080,362
4,089,446
Administrative expenses
(3,862,884)
(3,602,689)
Other operating income
87,431
86,824
Operating surplus
4
304,909
573,581
Interest receivable and similar income
8
247,890
27,504
Interest payable and similar expenses
9
(1,422)
(7,369)
Fair value gains/(losses) on financial instruments
10
263,207
(533,400)
Surplus before taxation
814,584
60,316
Tax on surplus
11
(72,006)
633
Surplus for the financial year
742,578
60,949
Other comprehensive income
Revaluation of tangible fixed assets
1,055,930
-
0
Total comprehensive income for the year
1,798,508
60,949

The comprehensive income has been prepared on the basis that all operations are continuing operations.

ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,598,579
1,226,842
Investments
13
3,146,571
2,886,830
5,745,150
4,113,672
Current assets
Debtors
14
2,582,156
1,419,971
Cash at bank and in hand
10,459,111
9,998,383
13,041,267
11,418,354
Creditors: amounts falling due within one year
15
(5,245,636)
(4,141,730)
Net current assets
7,795,631
7,276,624
Total assets less current liabilities
13,540,781
11,390,296
Provisions for liabilities
Deferred tax liability
17
351,977
-
0
(351,977)
-
Net assets
13,188,804
11,390,296
Reserves
Revaluation reserve
1,055,930
-
0
Income and expenditure account
12,132,874
11,390,296
Members' funds
13,188,804
11,390,296

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 19 April 2024 and are signed on its behalf by:
Mr M C Howlett
Director
Company registration number 05716642 (England and Wales)
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Revaluation reserve
Income and expenditure
Total
£
£
£
Balance at 1 January 2022
-
0
11,329,347
11,329,347
Year ended 31 December 2022:
Surplus and total comprehensive income
-
60,949
60,949
Balance at 31 December 2022
-
0
11,390,296
11,390,296
Year ended 31 December 2023:
Surplus
-
742,578
742,578
Other comprehensive income:
Revaluation of tangible fixed assets
1,055,930
-
1,055,930
Total comprehensive income
1,055,930
742,578
1,798,508
Balance at 31 December 2023
1,055,930
12,132,874
13,188,804
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
526,180
657,740
Interest paid
(1,422)
(7,369)
Income taxes paid
(6,712)
(21,642)
Net cash inflow from operating activities
518,046
628,729
Investing activities
Purchase of tangible fixed assets
(1,985)
(800)
Proceeds on disposal of tangible fixed assets
(30,795)
34,549
Interest received
247,890
27,504
Other income received from investments
3,466
3,717
Net cash generated from investing activities
218,576
64,970
Financing activities
Repayment of bank loans
(275,894)
(22,714)
Net cash used in financing activities
(275,894)
(22,714)
Net increase in cash and cash equivalents
460,728
670,985
Cash and cash equivalents at beginning of year
9,998,383
9,327,398
Cash and cash equivalents at end of year
10,459,111
9,998,383
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

ICC Commercial Crime Services (a Company Limited by Guarantee) is a private company limited by guarantee incorporated in England and Wales. The registered office is Cinnabar Wharf, 26 Wapping High Street, London, E1W 1NG.

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.

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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The accounting standards have been departed from in order to show a true and fair view.

 

The company has departed from the requirements of the Companies Act 2006 to disclose a 'Profit and loss account', as the company is a 'Not-for-profit organisation'. As such, the company has disclosed a 'Surplus or deficit'.

 

Management have concluded that the financial statements present a true and fair view and have complied with accounting standards and applicable legislation, subject to departure,

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Income and expenditure

Income and expenses are included in the financial statements as they become receivable or due, net of VAT.

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.

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:

Long leasehold land and buildings
straight line over 50 years on the building and 25 years on the refurbishment costs
Plant and equipment
straight line over 3 years for computers and 5-10 years for other office furniture and fittings

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to surplus or deficit.

1.5
Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in surplus or deficit. Transaction costs are expensed to surplus or deficit as incurred.

ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in surplus or deficit, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

Trade debtors that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

Financial assets, other than those held at fair value through surplus and deficit, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in surplus or deficit.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in surplus or deficit.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered into.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans 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 receipts 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.

ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in surplus or deficit in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Taxation

The tax currently payable is based on taxable surplus for the year. Taxable surplus differs from net surplus 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.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The company has established a trust for the benefit of employees and certain of their dependants. Monies held in the trust are held by independent trustees and managed at their discretion.

 

Where monies held in the trust are determined by the company (on the basis of employees past services to the company), and the company can obtain no future economic benefit from these monies, such monies, whether in the trust or accrued for by the company, are charged as an expense as they fall due.

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income and expenditure 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.

ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income and expenditure account for the period.

 

 

2
Judgements and key sources of estimation uncertainty

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.

Key sources of estimation uncertainty

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.

Land and buildings

The building element of the long leasehold property has been estimated to be 80% of the total cost.

Valuation of land and buildings

The key estimation judgement is the fair value assessment of the land and building which has been based on a professional valuation using market values of comparable properties in the area. The value included at 31 December 2023 is £2,570,000. Please refer to note 12.

3
Turnover

An analysis of the company's income is as follows:

2023
2022
£
£
Turnover analysed by class of business
Membership fees
4,455,203
4,569,118
Investigations
161,200
126,361
Seminars
77,408
19,500
Bulletins and computer expenses related to members
(639,344)
(668,562)
Other income
25,895
43,029
4,080,362
4,089,446
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover
(Continued)
- 18 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
405,819
330,120
European Union
192,048
269,263
Rest of the world
3,482,495
3,490,063
4,080,362
4,089,446
2023
2022
£
£
Other revenue
Interest income
247,890
27,504
4
Operating surplus
2023
2022
Operating surplus for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
38,155
38,658
Loss/(profit) on disposal of tangible fixed assets
30,795
(34,549)
Operating lease charges
68,233
69,289
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
33,400
32,900
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Directors
3
3
Managers
6
6
Administrative
2
2
Analysts/information officers
63
69
Total
74
80
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,349,939
2,258,948
Social security costs
140,310
145,572
Pension costs
144,263
141,066
2,634,512
2,545,586
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
417,000
363,250
Company pension contributions to defined contribution schemes
77,700
84,879
494,700
448,129

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
105,000
92,000
Company pension contributions to defined contribution schemes
32,500
41,479
Accrued lump sum at the end of the year
62,000
42,250
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
247,890
27,504
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through surplus or deficit
247,890
27,504
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,422
7,369
10
Fair value movements on financial instruments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
263,207
(533,400)
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on surplus for the current period
72,006
11,796
Adjustments in respect of prior periods
-
0
(12,429)
Total current tax
72,006
(633)

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the surplus or deficit and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
814,584
60,316
Expected tax charge based on the standard rate of corporation tax in the UK of 19% to 31 March 2023 and the main rate of corporation tax of 25% from 1 April 2023 (2022: 19%)
191,595
11,460
Tax effect of expenses that are not deductible in determining taxable profit
41,200
108,691
Tax effect of income not taxable in determining taxable surplus
(232,795)
(119,576)
Tax on investment income
58,305
5,226
Adjustments in respect of prior years
-
(12,429)
Effect of change in corporation tax rate
(24)
-
0
Employee benefit trust payment charge
13,725
5,995
Taxation charge/(credit) for the year
72,006
(633)
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
12
Tangible fixed assets
Long leasehold land and buildings
Plant and equipment
Total
£
£
£
Cost or valuation
At 1 January 2023
1,660,771
209,992
1,870,763
Additions
-
0
1,985
1,985
Revaluation
909,229
-
0
909,229
At 31 December 2023
2,570,000
211,977
2,781,977
Depreciation and impairment
At 1 January 2023
469,408
174,513
643,921
Depreciation charged in the year
29,270
8,885
38,155
Revaluation
(498,678)
-
0
(498,678)
At 31 December 2023
-
0
183,398
183,398
Carrying amount
At 31 December 2023
2,570,000
28,579
2,598,579
At 31 December 2022
1,191,363
35,479
1,226,842

During the prior year, long leasehold land and buildings with a carrying amount of £1,191,363 were pledged to secure borrowings of the company. During the current year, this fixed charge was satisfied in full by the company.

Long leasehold land and buildings with a carrying amount of £1,162,093 were revalued on 29 November 2023 by Dunsin Surveyors, independent valuers not connected with the company on the basis of market value. The valuation conforms to RICS Property Measure Professional Standards and Guidance which incorporates the International Property Measurement Standards and was based on recent market transactions on arm's length terms for similar properties.

Long leasehold land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £1,162,093 (2022: £1,191,363), being cost £1,660,771 (2022: £1,660,771) and depreciation £498,678 (2022: £469,408).

13
Fixed asset investments
2023
2022
£
£
Listed investments
3,146,571
2,886,830
Fixed asset investments revalued

At the reporting date listed investments are held at their market value, in accordance with their valuation report prepared by Coutts & Co.

ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Fixed asset investments
(Continued)
- 22 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 January 2023
2,886,830
Valuation changes
263,207
Disposals
(3,466)
At 31 December 2023
3,146,571
Carrying amount
At 31 December 2023
3,146,571
At 31 December 2022
2,886,830
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,187,623
1,047,584
Corporation tax recoverable
-
0
12,384
Other debtors
81,708
74,413
Prepayments and accrued income
312,825
285,590
2,582,156
1,419,971
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
-
0
275,894
Trade creditors
70,718
351,610
Corporation tax
58,711
5,801
Other taxation and social security
134,334
89,839
Other creditors
696,229
573,789
Accruals and deferred income
4,285,644
2,844,797
5,245,636
4,141,730
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
16
Loans and overdrafts
2023
2022
£
£
Bank loans
-
0
275,894
Payable within one year
-
0
275,894
Payable after one year
-
0
-
0

On 3 July 2015 the company obtained a commercial mortgage for £442,313. The interest rate applied was base rate (0.5% at the time of agreement), plus 1.37% per annum. The term was for 18 years. During the year, management resolved to pay off the remaining balance in full, and this was paid in January 2023.

17
Deferred taxation
Liabilities
Liabilities
2023
2022
Balances:
£
£
Deferred tax on revaluation
351,977
-
2023
Movements in the year:
£
Liability at 1 January 2023
-
Charge to other comprehensive income
351,977
Liability at 31 December 2023
351,977

Deferred tax relates to the revaluation of the long leasehold land and buildings. The £351,977 (2022: £nil) deferred tax liability has been calculated at a rate of 25% on the revaluation gain of long leasehold land and buildings. The deferred tax liability will crystallise upon sale of the asset.

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
144,263
141,066

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Members' liability

The company is limited by guarantee. Not having a share capital and the liability of members being limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up, such amounts may be required but not exceeding £10.

ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
20
Income and expenditure account

The company is limited by guarantee. Not having a share capital, if on a winding up there remains after the satisfaction of all its debts and liabilities, any property whatsoever, the same shall not be paid to or distributed among the members of the company. It shall be given or transferred to some other institution or institutions having objects similar to the objects of the company and in so far as effect cannot be given to such provision, then to some charitable object.

21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
330,309
331,389
Between two and five years
808,094
1,091,352
1,138,403
1,422,741
22
Related party transactions

During the reporting period the paid consultancy fees to directors amounting to £45,820 (2022: £45,820).

 

Affiliation fees have been accrued and expensed for £408,036 (2022: £408,945). The affiliation fee is charged by the International Chamber of Commerce, an organisation in which a director of the company, is also a director.

 

 

23
Cash generated from operations
2023
2022
£
£
Surplus for the year after tax
742,578
60,949
Adjustments for:
Taxation charged/(credited)
72,006
(633)
Finance costs
1,422
7,369
Investment income
(247,890)
(27,504)
Loss/(gain) on disposal of tangible fixed assets
30,795
(34,549)
Depreciation and impairment of tangible fixed assets
38,155
38,658
Other gains and losses
(263,207)
533,400
Movements in working capital:
(Increase)/decrease in debtors
(1,174,569)
845,942
Increase/(decrease) in creditors
1,326,890
(765,892)
Cash generated from operations
526,180
657,740
ICC COMMERCIAL CRIME SERVICES (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
24
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
9,998,383
460,728
10,459,111
Borrowings excluding overdrafts
(275,894)
275,894
-
9,722,489
736,622
10,459,111
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