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GEORGE MEDICINES UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.
2.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 Directors believe that the going concern basis is appropriate for the preparation and presentation of the financial statements, notwithstanding that the company is owed £1,056,880 by its immediate parent George Medicines PTY Limited, which has a continued deficit from operations and negative operating cash flows. The Directors of that company believe however that the Company has sufficient access to funds to continue operations, and the ability to repay the intercompany loan when cash flow from the successful commercialisation of the GMRx2 product is achieved. Access to funds include: i) tranche three funds under the convertible note agreements that is in place (drawn down post year end); ii) commercialisation agreements that have been agreed with partners in markets like Canada, Mexico and Brazil, and the anticipated likelihood of further agreements in the United States; iii) external capital; and ultimately iv) further investments from shareholders.
In the unlikely event that the above does not eventuate, the parent company may not be able to repay the intercompany borrowing then the going concern basis may not be appropriate for the UK company with the result that the Company may have to realise its assets and extinguish its liabilities other than in the ordinary course of business and in amounts different from those stated in the Financial Report. No allowance for such circumstances has been made in the Financial Report.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
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.
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