Registered number: 14819836
SB SOCIAL MEDIA UK LTD
UNAUDITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
|
SB SOCIAL MEDIA UK LTD
CONTENTS
|
|
|
|
Statement of financial position
|
|
Notes to the financial statements
|
|
|
SB SOCIAL MEDIA UK LTD
COMPANY INFORMATION
|
Alexandra Mary Darvell (appointed 21 April 2023)
|
|
Niklaus Manuel Hirschi (appointed 21 April 2023)
|
|
Alex James Sinclair-Morris (appointed 17 September 2023)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SB SOCIAL MEDIA UK LTD
REGISTERED NUMBER: 14819836
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
|
|
|
|
|
|
|
|
|
|
|
Trade and other receivables
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
Issued capital and reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
SB SOCIAL MEDIA UK LTD
REGISTERED NUMBER: 14819836
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023
For the period ending 31 December 2023 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the Company to obtain an audit for the period in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The Company's financial statements have been prepared in accordance with the provisions applicable to the companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements on pages 2 to 10 were approved and authorised for issue by the board of directors and were signed on its behalf by:
The notes on pages 6 to 10 form part of these financial statements.
|
SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
SB Social Media UK Ltd (the 'Company') is a limited company incorporated in England and Wales. The Company's registered office is at 124 Finchley Road, London, NW3 5JS. The Company's principal activity is social media content development and management.
The financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs). They were authorised for issue by the Company's board of directors on 26 July 2024.
Details of the Company's accounting policies, including changes during the period, are included in note 4.
In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Company accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The areas where judgments and estimates have been made in preparing the financial statements and their effects are disclosed in note 5.
The financial statements are the first financial statements of the Company and cover the period from the date of incorporation (i.e. 21st April 2023) to 31 December 2023.
The financial statements have been prepared on the historical cost basis except for certain financial assets and financial liabilities which are measured at fair values.
Historical cost is generally based on the fair value of the consideration given in exchange of assets. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.
In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.
For financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety as described below:
- Level 1 inputs are quoted prices in active markets for identical assets or liabilities;
- Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
- Level 3 inputs are unobservable inputs for the asset or liability.
|
SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
2.Basis of preparation (continued)
|
|
2.2 Changes in accounting policies
i) New standards, interpretations and amendments effective from 21 April 2023
|
IFRS 17 Insurance Contracts
IFRS 17 applies to all insurance contracts issued by an entity (with limited scope exclusions) and therefore its adoption may have an effect on non-insurers such as SB Social Media UK Ltd. The Company carried out an assessment of its contracts and operations and concluded that the adoption of IFRS 17 has had no effect on its financial statements for the period ended 31 December 2023.
Disclosure of Accounting Policies and Definition of Accounting Estimates
In February 2021, the IASB issued amendments to IAS 1 and IFRS Practice Statement 2. These amendments have no effect on the measurement or presentation of any items in the financial statements of the Company nor affect the disclosure of accounting policies of the Company.
The amendments to IAS 8, which added the definition of accounting estimates, clarify that the effects of a change in an input or measurement technique are changes in accounting estimates, unless resulting from the correction of prior period errors. These amendments had no effect on the financial statements of the Company.
Deferred Tax related to Assets and Liabilities arising from a Single Transaction
In May 2021, the IASB issued amendments to IAS 12, which clarify whether the initial recognition exemption applies to certain transactions that result in both an asset and a liability being recognised simultaneously. These amendments had no effect on the financial statements of the Company.
International Tax Reform – Pillar Two Model Rules
The IASB issued the final amendments to the International Tax Reform – Pillar Two Model Rules on 23 May 2023.
The amendments introduce a mandatory exception to entities from the recognition and disclosure of information about deferred tax assets and liabilities related to Pillar Two model rules. The exception is effective immediately and retrospectively. The amendments also provide for additional disclosure requirements with respect to an entity’s exposure to Pillar Two income taxes.
Management of SB Social Media UK Ltd have determined that the Company is not within the scope of OECD’s Pillar Two Model Rules and the exception to the recognition and disclosure of information about deferred tax assets and liabilities related to Pillar Two income taxes is not applicable to the Company.
|
|
New standards, interpretations and amendments not yet effective
|
The following new standards, interpretations and amendments, which are not yet effective and have not been adopted early in these financial statements, will or may have an effect on the Company's future financial statements:
|
SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
2.Basis of preparation (continued)
|
ii) New standards, interpretations and amendments not yet effective (continued)
|
The following amendments are effective for the period beginning 1 January 2024:
∙Liability in a Sale and Leaseback (Amendments to IFRS 16 Leases);
∙Classification of Liabilities as Current or Non-Current (Amendments to IAS 1 Presentation of Financial Statements);
∙Non-current Liabilities with Covenants (Amendments to IAS 1 Presentation of Financial Statements); and
∙Supplier Finance Arrangements (Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures)
The following amendments are effective for the period beginning 1 January 2025:
∙Lack of Exchangeability (Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates)
The directors anticipate that the adoption of these Standards in future periods may have an impact on the results and net assets of the Company, however, it is too early to quantify this.
The directors do not believe that the amendments to IAS 1 will have a significant impact on the classification of its liabilities.
The directors anticipate that the adoption of other Standards and interpretations that are not yet effective in future periods will not have a material impact on the financial statements of the Company.
|
Functional and presentation currency
|
These financial statements are presented in pound sterling, which is the Company's functional currency. All amounts have been rounded to the nearest pound, unless otherwise indicated.
4.Accounting policies
In assessing whether the going concern basis remains appropriate for the preparation of the financial statements, the directors have reviewed the Company’s principal and emerging risks, access to funding and liquidity position and the Company's performance up to the date these financial statements were approved and expected performance over the 18 months following the balance sheet date.
Based on their assessment, the directors are of the conclusion that the Company will have, available at its disposal, adequate resources to continue in operational existence for the foreseeable future.
While there will always remain an inherent uncertainty, the directors have no reason to believe that a material uncertainty exists that may cast significant doubt about the ability of the Company to continue as a going concern and therefore consider it both appropriate to continue to adopt the going concern basis in preparing the Company's financial statements and to not recognise any adjustments in the financial statements that would arise if the going concern basis were to become no longer appropriate.
|
SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
4.Accounting policies (continued)
Foreign currencies are translated into the functional (and presentation) currency using the exchange rates prevailing at the date of the respective transaction or valuation where items are re-measured.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial reporting period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
The tax expense represents the sum of the tax currently payable (i.e.income and/or corporate taxation) and deferred tax recognised solely in profit or loss.
Deferred taxation is recognised on temporary differences arising between the tax bases of assets and liabilities and their respective carrying amounts in the financial statements. Deferred taxation is calculated using tax rates and on the basis of tax laws enacted or substantively enacted at the balance sheet date expected to apply when the related deferred tax asset/liability is realised/settled.
Deferred tax assets are recognised only to the extent that it is sufficiently probable that future taxable profits will be available against which the temporary differences can be utilised.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities; with said financial assets and liabilities classified in accordance with the substance of the underlying contractual obligations rather than its legal form.
Financial assets and liabilities are recognised in the balance sheet upon becoming party to the contractual provisions of the instrument. Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or the financial asset is transferred along with substantially all the risks and rewards of ownership of the asset to another party. Financial liabilities are derecognised only when the Company’s obligations are discharged, cancelled or expired.
The measurement of specific financial assets and financial liabilities held by the Company is as outlined below.
Debtors
Debtors, excluding deferred tax assets (see note 4.2), are initially measured at transaction price (i.e. fair value) and subsequently held at transaction price less provision for impairment.
The Company recognises an allowance for expected credit losses for all debt instruments not held at fair value through profit or loss. Expected credit losses are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
|
SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
4.Accounting policies (continued)
|
|
Financial instruments (continued)
|
Expected credit losses are recognised in two stages.
1.For credit exposures for which there has not been a significant increase in credit risk since initial recognition, expected credit losses are provided for credit losses that result from default events that are possible within the next 12-months.
2.For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default.
For trade receivables, the Company applies a simplified approach in calculating expected credit losses. The Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime expected credit losses at each reporting date.
Cash and cash equivalents
Cash balances are reported by the Company as being financial instruments classified as short term receivables and are represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours and subject to an insignificant risk of changes in value. Cash balances are held at floating interest rates linked to UK bank rates.
Creditors
Creditors are initially measured, and subsequently held, at transaction price (i.e fair value).
|
Accounting estimates and judgments
|
In the application of the Company's accounting policies, the directors are required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. Although the expected outcome of said estimates and assumptions will, by definition, seldom equal the related actual results; estimates and judgments made are continually re-evaluated and are based on historical experience as well as other factors, including expectations of future events that are believed to be reasonable under the circumstances.
In the opinion of the directors, there were no estimates or judgments made in preparing the Company's financial statements for the period ended 31 December 2023 that would be considered as having a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period.
|
SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
|
|
Trade and other receivables
|
|
|
|
|
|
|
Receivables from related parties
|
|
|
|
|
|
|
|
|
Total current trade and other receivables
|
|
|
The carrying value of trade and other receivables approximates to fair value.
At the balance sheet date, the provision for impairment against trade and other receivables was £nil.
Receivables from related parties are unsecured, non-interest bearing and repayable on demand with no fixed date for repayment.
|
|
|
|
|
Payables to related parties
|
|
|
|
|
|
Other payables - tax and social security payments
|
|
|
Total current trade and other payables
|
|
|
The carrying value of trade and other payables approximates to fair value.
Payables to related parties are unsecured, non-interest bearing and repayable on demand with no fixed date for repayment.
|
|
SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
|
Ordinary shares of £1.00 each
|
|
|
|
|
|
|
|
|
|
|
|
On incorporation, the Company issues 100 Ordinary shares of £1.00 for cash at par.
|
|
Related party transactions
|
Related parties represent the shareholder, associated and related companies, directors and key management personnel, and entities controlled, jointly controlled or significantly influenced by such parties.
Pricing policies and terms of transactions with related parties are decided and approved, prior to execution, by the Company’s management.
During the period, the Company entered into the following transactions with related parties in the ordinary course of business at mutually agreed terms and conditions.
∙The provision of unsecured, non-interest bearing loan accounts with fellow group undertakings towards which the Company owed £55,814 as of the reporting date. Amounts owed towards said loan accounts are repayable on demand with no fixed term.
∙Recharge of operational expenditure totaling £58,677 to companies under common control; and
∙The provision of operational management services to the value of £353,462 on behalf of fellow group undertakings.
The Company's immediate and ultimate parent company is SB Media Holding Limited, a company incorporated under the Abu Dhabi Global Market Companies (Amendment No. 1) Regulations 2020 which holds a 100% interest in the total voting rights of the Company.
SB Media Holding Limited is the parent undertaking of the smallest group to consolidate these financial statements.
|
|