NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
NESR Limited is a private company limited by shares incorporated in England and Wales. The address of the principal place of business is 7th Floor, 777 Post Oak Boulevard, Houston, Texas, 77056, USA.
The financial statements are presented in dollars which is the functional currency of the company and rounded to the nearest $.
2.Accounting policies
|
|
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 Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis, which assumes the Company will continue in operational existence for the foreseeable future.
The Company’s financial support is provided by its parent entity, National Energy Services Reunited Corp. (the ‘Group Entity’) as Company remains reliant on the Group Entity for continuing financial support. The Directors have no reason to believe that such support will not continue for a period of at least 12 months from the date of approval of these financial statements. Taking these factors into account, the Directors conclude it is reasonable to adopt the going concern basis in preparing the financial statements.
|
|
Foreign currency translation
|
Functional and presentation currency
The company's functional and presentational currency is USD.
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.
Interest income is recognised in profit or loss using the effective interest method.
Investments in subsidiaries are measured at cost less accumulated impairment.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
|