NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
1.Accounting policies
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Basis of preparation of financial statements
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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:
The Company is in a net asset position of £80,831, primarily as a result of the intercompany loan balance due from Ocient Inc., the parent company. Given the Company's business model being solely a transfer pricing arrangement with the parent company, it is reliant upon the continued support of the group in order to remain a going concern.
Ocient Inc. will require additional funding to continue operations through the next twelve months from the financial statement approval date.
Management plan to raise additional funding, which they are confident in securing. Therefore, it has been deemed appropriate to prepare the financial statements on a going concern basis.
However, there can be no assurances that additional funding will be available. Such plans are not in the parent company's control and cannot be considered to be probable of being achieved. This condition raises substantial doubt about the parent company's ability to continue supporting the Company for the foreseeable future and as such, a material uncertainty exists.
Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Rendering of services
Turnover is recognised on a cost plus 7.5% basis, in line with the intercompany service agreement with the parent company. Intercompany turnover is recognised when all of the following conditions are satisfied:
∙the amount of turnover can be measured reliably;
∙it is probable that the Company will receive the consideration due under the intercompany service agreement;
∙the costs incurred under the intercompany service agreement can be measured reliably.
Short term debtors are measured at transaction price, less any impairment. Amounts owed by group undertakings are intercompany loans measured at cost. These loans are unsecured, interest free and repayable on demand.
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