Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31truefalsetrue2023-01-01No description of principal activity22falsetrueThe members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.false 00838324 2023-01-01 2023-12-31 00838324 2022-01-01 2022-12-31 00838324 2023-12-31 00838324 2022-12-31 00838324 c:Director1 2023-01-01 2023-12-31 00838324 c:RegisteredOffice 2023-01-01 2023-12-31 00838324 c:Agent1 2023-01-01 2023-12-31 00838324 d:PlantMachinery 2023-01-01 2023-12-31 00838324 d:PlantMachinery 2023-12-31 00838324 d:PlantMachinery 2022-12-31 00838324 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00838324 d:FurnitureFittings 2023-01-01 2023-12-31 00838324 d:FurnitureFittings 2023-12-31 00838324 d:FurnitureFittings 2022-12-31 00838324 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00838324 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00838324 d:ComputerSoftware 2023-12-31 00838324 d:ComputerSoftware 2022-12-31 00838324 d:CurrentFinancialInstruments 2023-12-31 00838324 d:CurrentFinancialInstruments 2022-12-31 00838324 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 00838324 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 00838324 d:ShareCapital 2023-12-31 00838324 d:ShareCapital 2022-12-31 00838324 d:RetainedEarningsAccumulatedLosses 2023-12-31 00838324 d:RetainedEarningsAccumulatedLosses 2022-12-31 00838324 c:OrdinaryShareClass1 2023-01-01 2023-12-31 00838324 c:OrdinaryShareClass1 2023-12-31 00838324 c:OrdinaryShareClass1 2022-12-31 00838324 c:FRS102 2023-01-01 2023-12-31 00838324 c:AuditExempt-NoAccountantsReport 2023-01-01 2023-12-31 00838324 c:FullAccounts 2023-01-01 2023-12-31 00838324 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 00838324 6 2023-01-01 2023-12-31 00838324 d:ComputerSoftware d:OwnedIntangibleAssets 2023-01-01 2023-12-31 00838324 e:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure


Registered number: 00838324












GEMMOLOGICAL INSTRUMENTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 

GEMMOLOGICAL INSTRUMENTS LIMITED

CONTENTS



Page
Company information
 
1
Balance sheet
 
2 - 3
Notes to the financial statements
 
4 - 14


 

GEMMOLOGICAL INSTRUMENTS LIMITED
 
COMPANY INFORMATION


Director
Philip Sadler FCCA, FGA, DGA 




Registered number
00838324



Registered office
16 Great Queen Street
Covent Garden

London

WC2B 5AH




Trading Address
21 Ely Place

London

EC1N 6TD






Accountants
Blick Rothenberg Limited
Chartered Accountants

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Bankers
Barclays Bank Plc
99 Hatton Garden

London

EC1N 8DN




Page 1


 
REGISTERED NUMBER:00838324
GEMMOLOGICAL INSTRUMENTS LIMITED

BALANCE SHEET
AS AT 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 4 
2,711
4,067

Tangible assets
 5 
803
1,017

Investments
 6 
1
1

  
3,515
5,085

Current assets
  

Stocks
 7 
159,810
124,385

Debtors: amounts falling due within one year
 8 
392,805
345,138

Cash at bank and in hand
  
756,767
669,043

  
1,309,382
1,138,566

Creditors: amounts falling due within one year
 9 
(66,150)
(51,415)

Net current assets
  
 
 
1,243,232
 
 
1,087,151

Total assets less current liabilities
  
1,246,747
1,092,236

  

Net assets
  
1,246,747
1,092,236


Capital and reserves
  

Called up share capital 
 10 
210,000
210,000

Profit and loss account
  
1,036,747
882,236

Total equity
  
1,246,747
1,092,236


Page 2


 
REGISTERED NUMBER:00838324
GEMMOLOGICAL INSTRUMENTS LIMITED
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The director considers that the company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

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 financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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 profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Philip Sadler FCCA, FGA, DGA
Director

Date: 20 September 2024

The notes on pages 4 to 14 form part of these financial statements.

Page 3

 

GEMMOLOGICAL INSTRUMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Gemmological Instruments Limited is a private company limited by shares incorporated in England and Wales. The registered office is at 16 Great Queen Street, London, WC2B 5AH.
The financial statements are presented in Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

  
2.2

Prior year adjustment

The company has restated its comparative figures for the year ended 31 December 2022 and its brought forward profit and loss account reserve as at 1 January 2022. An explanation of the adjustments together with the financial impact is set out in Note 11.

  
2.3

Exemption from preparing consolidated financial statements

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Gemmological Instruments Limited is a wholly owned subsidiary of The Gemmological Association of Great Britain and the results of Gemmological Instruments Limited are included in the consolidated financial statements of The Gemmological Association of Great Britain which are available from 21 Ely Place, London, EC1N 6TD.

  
2.4

Going concern

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 4

 

GEMMOLOGICAL INSTRUMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is Sterling (£).

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.6

Revenue

Turnover represents licensing income from Accredited Training Colleges in China as well as income from the sale of scientific equipment and journals in the UK and is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

  
2.7

Intangible assets

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Website development - 33% reducing balance

Page 5

 

GEMMOLOGICAL INSTRUMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery
-
20%
reducing balance
Fixtures and fittings
-
20%
reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.10

Stocks

Stock represents scientific equipment, gemstones and related publications for resale and is stated at the lower of cost and net realisable value, being the estimated selling price less costs to sell. Cost is based on the cost of purchase on an average cost basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to sell. The impairment loss is recognised immediately in profit or loss.

 
2.11

Cash at bank and in hand

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 6

 

GEMMOLOGICAL INSTRUMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.12

Financial instruments

The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 
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.
The company’s policies for its major classes of financial assets and financial liabilities are set out below. 
Financial assets
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Impairment of financial asset
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. 
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. 



 
Page 7

 

GEMMOLOGICAL INSTRUMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

Financial instruments (continued)
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 profit or loss.
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. 
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

  
2.13

Covenant payment to parent charity

The company pays a proportion of its profits for the reporting period to its parent charity. These covenant payments are recognised as distributions to the owners in equity within retained earnings.

  
2.14

Share capital

Ordinary shares are classified as equity.

Page 8

 

GEMMOLOGICAL INSTRUMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.15

Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
 
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


3.


Employees

The average monthly number of employees, including directors, during the year was 2 (2022 - 2).

Page 9

 

GEMMOLOGICAL INSTRUMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Intangible assets




Company website

£



Cost


At 1 January 2023
21,056



At 31 December 2023

21,056



Amortisation


At 1 January 2023
16,989


Charge for the year
1,356



At 31 December 2023

18,345



Net book value



At 31 December 2023
2,711



At 31 December 2022
4,067



Page 10

 

GEMMOLOGICAL INSTRUMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Tangible fixed assets





Plant and machinery
Fixtures and fittings
Total

£
£
£



Cost


At 1 January 2023
32,139
7,168
39,307



At 31 December 2023

32,139
7,168
39,307



Depreciation


At 1 January 2023
31,559
6,731
38,290


Charge for the year on owned assets
116
98
214



At 31 December 2023

31,675
6,829
38,504



Net book value



At 31 December 2023
464
339
803



At 31 December 2022
580
437
1,017


6.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
1



At 31 December 2023
1





7.


Stocks

2023
2022
£
£

Scientific equipment, gemstones and related publications for resale
159,810
124,385


Page 11

 

GEMMOLOGICAL INSTRUMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Debtors

As restated
2023
2022
£
£


Trade debtors
69,952
36,894

Amounts owed by group undertakings
322,853
308,244

392,805
345,138



9.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
18,115
4,211

Corporation tax
26,351
26,351

Other taxation and social security
4,444
4,977

Other creditors
3,240
876

Accruals and deferred income
14,000
15,000

66,150
51,415



10.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



210,000 (2022 - 210,000) Ordinary shares of £1 each
210,000
210,000


Page 12

 

GEMMOLOGICAL INSTRUMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Prior year adjustment


The directors identified an error in the previous financial statements, whereby VAT and foreign exchange differences previously classified as other Chinese taxes of £165,005 arising on royalty income from the company’s Chinese subsidiary during the period from 1 January 2018 to 31 December 2022 should have been reported in cost of sales, rather than as foreign withholding tax. The adjustment for the year ended 31 December 2022 was to reclassify £26,787 from taxation to cost of sales.

The company has a covenant in place to pay its taxable profits to its parent, The Gemmological Association of Great Britain.  Accordingly, after amending the tax computations for the reclassification of the VAT and foreign exchange on other Chinese taxes to cost of sales, additional covenant payments of £493,728 should have been reflected in the financial statements during the period from 1 January 2018 to 31 December 2022, with a corresponding reduction in the amount due from the parent company and a potential corporation tax provision of £26,351 for the year ended 31 December 2018.

Prior period adjustments have therefore been recognised in order to correct the position in the financial statements, as detailed below:

Changes to the balance sheet:
                                                                                                                      
     At 31 December 2022


As previously reported
Adjustment
As restated

£
£
£

Debtors

Amounts owed by group undertakings
 801,972
 (493,728)
 308,244


Creditors: Amounts falling due within one year

Corporation tax
-
26,351
26,351



Reconciliation of changes in equity:


1 January 2022
31 December 2022

                   £
                   £

Equity as previously reported
1,112,934
1,402,315

 
Adjustments to prior year:

Increase in covenant
(379,238)
(493,728)

Provision for potential corporation tax
(26,351)
(26,351)

Equity as restated
707,345
882,236

Page 13

 

GEMMOLOGICAL INSTRUMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.     Prior year adjustment (continued)

Reconciliation of changes in profit for the previous financial period:


2022

£ 

Profit for the financial year as previously reported
430,105

 
Adjustments to prior year:

Less: VAT and foreign exchange on chinese taxes
(26,787)

Plus: Adjustment to foreign withholding tax
26,787

Profit for the financial year
430,105


12.


Related party transactions

The company has taken advantage of the exemption contained in FR102 section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned part of the group.


13.


Parent company

The immediate and ultimate parent company is The Gemmological Association of Great Britain, a private company limited by guarantee incorporated in England and Wales. The registered office is at 16 Great Queen Street, London, WC2B 5AH. It is a registered charity with charity number 1109555.
The smallest and largest group that prepares group accounts and for which the company is a member is that headed by The Gemmological Association of Great Britain.
The consolidated financial statements are available from 21 Ely Place, London, EC1N 6TD.

 
Page 14