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| 2. |
Summary of Significant Accounting Policies |
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The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements. |
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Statement of compliance |
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The financial statements of the company for the financial year ended 31 December 2024 have been prepared in accordance with the provisions of FRS 102 Section 1A (Small Entities) and the Companies Act 2006. |
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Basis of preparation |
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The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The financial reporting framework that has been applied in their preparation is the Companies Act 2006 (the Act) and FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland issued by the Financial Reporting Council. The company qualifies as a small company for the period, in respect of the financial year ended 30 December 2023 and has applied the rules of the ‘Small Companies Regime‘ in accordance with Companies Act 2006 and Section 1A of FRS 102. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company‘s financial statements. |
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Turnover |
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The company generates revenue by granting customers access to its online platform on a subscription basis. The company recognises revenue from contracts with customers in accordance with FRS 102, Section 23: Revenue.
The company identifies each contract with a customer and determines the performance obligations in the contract. The company considers the software platform access to be a single performance obligation that is satisfied over time, as the customer simultaneously receives and consumes the benefits of the service throughout the subscription period.
Turnover is reported exclusive of trade discounts and value added tax. |
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Cash flow statement |
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The company has availed of the exemption in FRS 102 Section 1A from the requirement to prepare a Cash Flow Statement because it is classified as a small company. |
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Intangible assets |
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Website Development |
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Website Development are valued at cost less accumulated amortisation. |
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Amortisation is calculated to write off the cost in equal annual instalments over their estimated useful life of 5 years. |
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Property, plant and equipment and depreciation |
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Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows: |
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Fixtures, fittings and Computer equipment |
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33.33% Straight line |
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The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. |
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Trade and other debtors |
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Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts. |
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Borrowing costs |
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Borrowing costs relating to the acquisition of assets are capitalised at the appropriate rate by adding them to the cost of assets being acquired. Investment income earned on the temporary investment of specific borrowings pending their expenditure on the assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period in which they are incurred. |
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Trade and other creditors |
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Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost. |
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Employee benefits |
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The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The company also operates a defined benefit pension scheme for its employees providing benefits based on final pensionable pay. The assets of this scheme are also held separately from those of the company, being invested with pension fund managers. |
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Taxation and deferred taxation |
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Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Balance Sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements.
Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date. |
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Foreign currencies |
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Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Balance Sheet date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Profit and Loss Account. |
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Ordinary share capital |
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The ordinary share capital of the company is presented as equity.
Share capital classified as financial liabilities
The company classifies Deferred Shares and Ordinary P Shares as non-equity as holders carry no rights to dividends and are not entitled to received notice of, to attend, to speak or two vote at any general meeting of the company. |
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| 4. |
Critical Accounting Judgements and Estimates |
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The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. |
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Going Concern |
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The directors have prepared the financial statements on a going concern basis, which assumes that the company will continue in operational existence for the foreseeable future. In making this judgement, the directors have considered a number of factors, including:
• The company’s current financial position and performance;
• Its projections for at least 12 months from the date of approval of these financial statements;
• The availability and terms of existing sources of financing;
• The sensitivity of the projections to changes in key assumptions and possible contingencies. |
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Amortisation of Website Development Costs |
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The directors have made key assumptions in the determination of amortisation of website development costs incurred in the financial period and in respect of the carrying value of the underlying asset at the period end. |