Falcon Capital Markets UK Limited
Unaudited Financial Statements
For the year ended 31 May 2023
Pages for Filing with Registrar
Company Registration No. 13395268 (England and Wales)
Falcon Capital Markets UK Limited
Balance Sheet
As at 31 May 2023
Page 1
2023
2022
Notes
$
$
$
$
Current assets
Stock
5,682,701
1,096,991
Debtors
3
949,305
141
Cash at bank and in hand
10,124
6,642,130
1,097,132
Creditors: amounts falling due within one year
4
(6,620,054)
(1,101,091)
Net current assets/(liabilities)
22,076
(3,959)
Capital and reserves
Called up share capital
5
141
141
Profit and loss reserves
21,935
(4,100)
Total equity
22,076
(3,959)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 1 May 2024
G White
Director
Company Registration No. 13395268
Falcon Capital Markets UK Limited
Notes to the Financial Statements
For the year ended 31 May 2023
Page 2
1
Accounting policies
Company information
Falcon Capital Markets UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Radford Court 814 Old Kent Road, London, United Kingdom, SE15 1AJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are prepared in US dollars, 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. The principal accounting policies adopted are set out below.
1.2
Turnover
Net trading revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and can be reliably measured. Net trading revenue is measured as the fair value of the consideration received or receivable.
Net trading revenue comprises profits and losses derived from dealings in cryptocurrencies and digital assets as principal transactions in digital assets and after direct trading expenses.
The profit and losses from dealings om cryptocurrencies and digital assets include unrealised profits and losses at the period end as assets held are included at market value. The directors consider this to be necessary to show a true and fair view as the company is operating in highly active markets.
1.3
Stock
The inventory held by the company consists of various cryptocurrencies and digital assets held at the balance sheet date. Inventory is measured at fair value.
Cryptocurrencies are held for sale as part of the company ordinary activities and measured at fair value through profit and loss. This comprises of holding inventory at fair value less costs to sell, which provides a more relevant measure of the company's performance. As the company operates in active market where sales can be achieved at published prices from a number of active sources, resulting in a store of readily realisable value at the balance date, fair value is a more relevant measure.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.4
Cash and cash equivalents
Cash and cash equivalents 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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Falcon Capital Markets UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2023
1
Accounting policies
(Continued)
Page 3
1.5
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.
Classification of financial liabilities
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
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Falcon Capital Markets UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2023
1
Accounting policies
(Continued)
Page 4
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit 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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
Debtors
2023
2022
Amounts falling due within one year:
$
$
Other debtors
949,305
141
Falcon Capital Markets UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2023
Page 5
4
Creditors: amounts falling due within one year
2023
2022
$
$
Trade creditors
2,852,753
Corporation tax
5,145
Other creditors
1,978,403
1,096,681
Accruals and deferred income
1,783,753
4,410
6,620,054
1,101,091
5
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
$
$
Issued and not fully paid
Ordinary shares of $1 each
100
100
141
141