Registered number: 14819836
SB SOCIAL MEDIA UK LTD
UNAUDITED
FOR THE YEAR ENDED 31 DECEMBER 2024
SB SOCIAL MEDIA UK LTD
CONTENTS
SB SOCIAL MEDIA UK LTD
COMPANY INFORMATION
Page 1
SB SOCIAL MEDIA UK LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The loss for the year, after taxation, amounted to £46,304 (2023 - loss £106,709).
The directors do not recommend payment of a dividend based on the results for the reporting period.
The directors who served during the year were:
There are no future developments to note as of the date this report was approved by the directors. The Company is expected to continue to perform in line with management's forecasts and expectations.
The Company has exposure to credit, market and liquidity risks from its financial instruments:
CREDIT RISK
Financial assets, which potentially expose the Company to concentrations of credit risk comprise principally of bank balances, sums due from related parties and trade and other receivables.
CREDIT RISK
Financial assets, which potentially expose the Company to concentrations of credit risk comprise principally of bank balances, sums due from related parties and trade and other receivables.
Bank balances
∙The Company’s bank balances in current and time deposit accounts are placed with high credit quality financial institutions.
Trade receivables
∙The Company seeks to limit its credit risk with respect to customers by monitoring outstanding receivables. Counterparty credit limits are periodically reviewed and updated. Credit limits are set to minimise the concentration of risks and therefore mitigate financial loss through a counterparty’s potential failure to make payments. An impairment analysis is performed at each reporting date using internal and external information to measure expected credit losses.
∙As of the reporting date, the Company’s exposure on account of significant concentration of credit risk amounted to £nil. There is no significant concentration of credit risk from trade receivables outside the industry in which the Company operates.
Other receivables
∙With respect to credit risk arising from other receivables, the Company’s exposure to credit arises from default of the counter party with maximum exposure equal to the carrying amount of these assets.
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SB SOCIAL MEDIA UK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
MARKET RISK
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices, such as exchange rate risk, interest rate risk or other price risk, which will affect the Company’s income or the value of its holding of financial instruments.
Interest rate risk
∙In absence of interest bearing borrowings, interest rate risk is minimum.
Exchange rate risk
∙There exists some exchange rate risk given that the Company holds certain financial assets and financial liabilities denominated in Euros and United States Dollars. To manage exposure to fluctuations reflective of currency performance, management procure currency specific bank facilities and where possible negotiate contracts to be paid in Pounds Sterling.
LIQUIDITY RISK
Liquidity risk is the risk that the company will not be able to meet financial obligations as they fall due. The liquidity requirements are monitored on a regular basis by the Company's key management personnel who ensure that sufficient funds are made available to the entities to meet any future commitments.
The Company’s terms of sales require amounts to be paid within 30-60 days of the date of sale. Trade payables are normally settled within 30 days of the date of purchase.
This report was approved by the board and signed on its behalf.
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SB SOCIAL MEDIA UK LTD
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 4
SB SOCIAL MEDIA UK LTD
REGISTERED NUMBER: 14819836
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
Page 5
SB SOCIAL MEDIA UK LTD
REGISTERED NUMBER: 14819836
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024
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 statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements on pages 4 to 29 were approved and authorised for issue by the board of directors and were signed on its behalf by:
The notes on pages 12 to 29 form part of these financial statements.
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SB SOCIAL MEDIA UK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 7
SB SOCIAL MEDIA UK LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
The notes on pages 12 to 29 form part of these financial statements.
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SB SOCIAL MEDIA UK LTD
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 9
SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The financial statements have been prepared under the historical cost basis and in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs).
Details of the Company's accounting policies, including changes during the year, are included in note 6.
In preparing these financial statements, management have made judgments, estimates and assumptions that will affect the application of the Company's accounting policies and the reported amounts of assets, liabilities, income and expenses. Consequently, actual results may differ.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The areas where judgments and estimates have been made in preparing the financial statements and their effects are disclosed in note 7.
Details of the Company's accounting policies, including changes during the year, are included in note 6.
In preparing these financial statements, management have made judgments, estimates and assumptions that will affect the application of the Company's accounting policies and the reported amounts of assets, liabilities, income and expenses. Consequently, actual results may differ.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The areas where judgments and estimates have been made in preparing the financial statements and their effects are disclosed in note 7.
New standards, interpretations and amendments effective from 1 January 2024
The Company has applied the following standards and amendments for the first time for its annual reporting period commencing 1 January 2024:
- Classification of Liabilities as Current or Non-current and Non-current liabilities with covenants – Amendments to IAS 1;
- Lease Liability in Sale and Leaseback – Amendments to IFRS 16; and
- Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7.
The amendments listed above did not have any material impact on the amounts recognised in prior periods and are not expected to significantly affect current or future periods.
New standards, interpretations and amendments not yet effective
Certain new accounting standards and amendments to accounting standards have been published that are not mandatory for 31 December 2024 reporting periods and have not been early adopted by the Company.
The Company’s assessment of the impact of these new standards and amendments is set out below:
Amendments to IAS 21 -- Lack of Exchangeability
Effective for annual periods beginning on or after 1 January 2025, the IASB amended IAS 21 during August 2023,to help entities to determine whether a currency is exchangeable into another currency, and which spot exchange rate to use when it is not.
The Company has applied the following standards and amendments for the first time for its annual reporting period commencing 1 January 2024:
- Classification of Liabilities as Current or Non-current and Non-current liabilities with covenants – Amendments to IAS 1;
- Lease Liability in Sale and Leaseback – Amendments to IFRS 16; and
- Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7.
The amendments listed above did not have any material impact on the amounts recognised in prior periods and are not expected to significantly affect current or future periods.
New standards, interpretations and amendments not yet effective
Certain new accounting standards and amendments to accounting standards have been published that are not mandatory for 31 December 2024 reporting periods and have not been early adopted by the Company.
The Company’s assessment of the impact of these new standards and amendments is set out below:
Amendments to IAS 21 -- Lack of Exchangeability
Effective for annual periods beginning on or after 1 January 2025, the IASB amended IAS 21 during August 2023,to help entities to determine whether a currency is exchangeable into another currency, and which spot exchange rate to use when it is not.
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Management do not expect these amendments to have a material impact on its operations or financial statements.
Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments
Effective for annual periods beginning on or after 1 January 2026, the IASB issued targeted amendments to IFRS 9 and IFRS 7 on 30 May 2024, to respond to recent questions arising in practice and to include new requirements. These amendments:
- clarify the date of recognition and derecognition of certain financial assets and liabilities with a new exception for some financial liabilities settled through an electronic cash transfer system;
- clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
- add new disclosures for certain instruments with contractual terms that can change cash flows; and
- update the disclosures for equity instruments designated at fair value through other comprehensive income
Management do not expect these amendments to have a material impact on its operations or financial statements.
IFRS 19 Subsidiaries without Public Accountability: Disclosures
Effective for annual periods beginning on or after 1 January 2027 and Issued in May 2024, IFRS 19 allows for certain eligible subsidiaries of parent entities that report under IFRS Accounting Standards to apply reduced disclosure requirements.
Management do not expect these reduced disclosure requirements to have a material impact on its operations or financial statements
IFRS 18 Presentation and Disclosure in Financial Statements
Effective for annual periods beginning on or after 1 January 2027, IFRS 18 will replace IAS 1 Presentation of financial statements, introducing new requirements that will help to achieve comparability of the financial performance of similar entities and provide more relevant information and transparency to users. Even though IFRS 18 will not impact the recognition or measurement of items in the financial statements, its impacts on presentation and disclosure are expected to be pervasive, in particular those related to the statement of financial performance and providing management-defined performance measures within the financial statements.
Management are currently assessing the detailed implications of applying the new standard on the Company's financial statements. From their high-level preliminary assessment, the following potential impacts have been identified:
Although the adoption of IFRS 18 will have no impact on the Company’s net profit, the Company expects that the grouping items of income and expenses in the statement of profit or loss and comprehensive income into the new categories will impact how operating profit is calculated and reported. Foreign exchange differences currently aggregated in the line item ‘General and administrative expenses’ in operating profit might need to be disaggregated with some foreign exchange gains or losses presented below operating profit.
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The line items presented on the primary financial statements might change as a result of the application of the concept of ‘useful structured summary’ and the enhanced principles on aggregation and disaggregation. Management do not expect there to be a significant change in the information that is currently disclosed in the notes because the requirement to disclose material information remains unchanged; however, the way in which the information is grouped might change as a result of the aggregation/disaggregation principles. In addition, there will be significant new disclosures required for management-defined performance measures and for the first annual period of application of IFRS 18, a reconciliation for each line item in the statement of profit or loss and comprehensive income between the restated amounts presented by applying IFRS 18 and the amounts previously presented applying IAS 1.
From a cash flow statement perspective, there will be changes to how interest is presented with interest paid presented as financing cash flows and interest received presented as investing cash flows, which is a change from current presentation as part of operating cash flows.
The Company will apply the new standard from its mandatory effective date of 1 January 2027 with retrospective application required and so the comparative information for the financial year ending 31 December 2026 will be restated in accordance with IFRS 18.
Comparative figures cover the period from the date of incorporation (i.e. 21st April 2023) to 31 December 2023.
6.Accounting policies
Based on their assessment, the directors are of the conclusion that the Company will have, available at its disposal, adequate resources to continue in operational existence for the foreseeable future.
The validity of the directors' conclusion is dependent upon the continued financial support of the Company by its fellow group undertakings and shareholders.
Directors of the Company's fellow group undertakings, members of which are also directors and beneficial owners of the Company have confirmed that the current intention is for the Company to continue to be provided with financial support, where deemed necessary, to enable it to continue as a going concern and for no demand towards repayment of any amounts owed by the Company to be made until such time as the Company can repay them.
Notwithstanding this intention, however, there is no contractual certainty that such continuing support will be made available to the Company nor that any outstanding amounts owed will not be called for immediate repayment as a result of factors outside of the control of the directors.
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
6.Accounting policies (continued)
While there will always remain an inherent uncertainty, the directors have no reason to believe that a material uncertainty exists that may cast significant doubt about the ability of the Company to continue as a going concern and therefore consider it both appropriate to continue to adopt the going concern basis in preparing the Company's financial statements and to not recognise any adjustments in the financial statements that would arise if the going concern basis were to become no longer appropriate.
The Company assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent and has concluded that it is the principal in all of its revenue arrangements
as the Company typically controls the goods or services before transfer to the customer.
The Company recognises revenue from contracts with customers based on a five-step model as set out in IFRS 15:
- 1 - Identify the contractual arrangement;
- 2 - Identify the performance obligations in the contract;
- 3 - Determine the transaction price;
- 4 - Allocate the transaction price to the performance obligations in the contract; and
- 5 - Recognise revenue when (or as) the entity satisfies a performance obligation
There were no elements of variable consideration included in contract revenue recognised by the Company during the current or prior reporting periods.
The Company satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met:
- The customer simultaneously receives and consumes the benefits provided based on the Company’s performance; or
- The Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or
- The Company’s performance does not create an asset with an alternative use to the Company and the entity has an enforceable right to payment for performance completed to date.
For performance obligations where one of the above conditions are not met, revenue is recognised at the point in time at which the performance obligation is satisfied.
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
6.Accounting policies (continued)
Income from advertising is recognised over a period of time in line with the underlying contractual agreement.
As lessee, the Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets as part of which the Company recognises right-of-use assets representing the right to use the underlying assets and lease liabilities to make lease payments.
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets held by the Company comprise solely of leased assets which are to be returned to the lessor at the end of the lease term and are depreciated on a straight-line basis over the the lease term.
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. Lease payments include solely fixed payments less any lease incentives receivable.
Lease payments in respect of lease liabilities due by the Company do not comprise of any of the following which are not applicable the lease agreements entered into by the Company:
- Variable lease payments that depend on an index or a rate;
- Amounts expected to be paid under residual value guarantees;
- Exercise price of a purchase option reasonably certain to be exercised;
- Penalties for terminating the lease where the lease term reflects the Company exercising its option to terminate.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date where the interest rate implicit in the lease is not readily determinable.
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
6.Accounting policies (continued)
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for lease payments made. The carrying amount of lease liabilities is re-measured where there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an option to purchase the underlying asset.
The Company’s lease liability is disclosed as a separate line-item under current and non-current portions (note 19).
The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). Lease payments on short-term leases are recognised as expense on a straight-line basis over the lease term.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial reporting period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
The tax expense represents the sum of the tax currently payable (i.e.income and/or corporate taxation) and deferred tax recognised solely in profit or loss.
Current taxation is calculated using tax rates and on the basis of tax laws enacted or substantively enacted at the reporting date in the UK where taxable income is generated by the Company through its business operations. Positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation are periodically evaluated with provision recognised, where appropriate, on the basis of amounts expected to be payable.
Deferred taxation is recognised on temporary differences arising between the tax bases of assets and liabilities and their respective carrying amounts in the financial statements. Deferred taxation is calculated using tax rates and on the basis of tax laws enacted or substantively enacted at the balance sheet date expected to apply when the related deferred tax asset/liability is realised/settled.
Deferred tax assets are recognised only to the extent that it is sufficiently probable that future taxable profits will be available against which the temporary differences can be utilised.
Deferred taxation is recognised on temporary differences arising between the tax bases of assets and liabilities and their respective carrying amounts in the financial statements. Deferred taxation is calculated using tax rates and on the basis of tax laws enacted or substantively enacted at the balance sheet date expected to apply when the related deferred tax asset/liability is realised/settled.
Deferred tax assets are recognised only to the extent that it is sufficiently probable that future taxable profits will be available against which the temporary differences can be utilised.
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
6.Accounting policies (continued)
Depreciation is calculated on a straight-line basis over an estimated useful life of 5 years for computer and office equipment.
Depreciation of a tangible fixed asset commences once the asset is available for use. The residual value and depreciation basis of tangible fixed assets are reviewed, and adjusted prospectively where deemed appropriate, 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.
Depreciation of a tangible fixed asset commences once the asset is available for use. The residual value and depreciation basis of tangible fixed assets are reviewed, and adjusted prospectively where deemed appropriate, 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.
Financial assets and liabilities are recognised in the statement of financial position upon becoming party to the contractual provisions of the instrument. Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or the financial asset is transferred along with substantially all the risks and rewards of ownership of the asset to another party. Financial liabilities are derecognised only when the Company’s obligations are discharged, cancelled or expired.
The measurement of specific financial assets and financial liabilities held by the Company is as outlined below.
Debtors
Debtors, excluding deferred tax assets (see note 6.5), are initially measured at transaction price (i.e. fair value) and subsequently held at transaction price less provision for impairment.
The Company recognises an allowance for expected credit losses for all debt instruments not held at fair value through profit or loss. Expected credit losses are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
Expected credit losses are recognised in two stages.
For trade receivables, the Company applies a simplified approach in calculating expected credit losses. The Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime expected credit losses at each reporting date.
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
6.Accounting policies (continued)
Cash balances are reported by the Company as being financial instruments classified as short term receivables and are represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours and subject to an insignificant risk of changes in value. Cash balances are held at floating interest rates linked to UK bank rates.
Creditors
Creditors are initially measured, and subsequently held, at transaction price (i.e fair value).
In the application of the Company's accounting policies, the directors are required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. Although the expected outcome of said estimates and assumptions will, by definition, seldom equal the related actual results; estimates and judgments made are continually re-evaluated and are based on historical experience as well as other factors, including expectations of future events that are believed to be reasonable under the circumstances.
In the opinion of the directors, the following judgments and estimates made in preparing the Company's financial statements for the period ended 31 December 2024 may be considered as having a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period.
Revenue from contracts with customers
The Company provides media services as part of the contracts it enters into with its customers and towards which management have concluded that delivery of the content is the only performance obligation of the Company under these contracts.
Management have also concluded that revenue from said contracts is recognised at the time the Company delivers the agreed content upon which the customer simultaneously receives and consumes the benefits provided by the Company. The fact that another entity would not need to re-perform the services that the Company has provided to date demonstrates that the customer simultaneously receives and consumes the benefits of the Company’s performance on delivery.
Revenue from the rendering of services to customers is recognised based on the price specified in the contract with the entire transaction price allocated to each separable performance obligation. During the reporting period, allocation of transaction price was made by dividing the entire transaction price by the number of separable contract performance obligations.
Principal versus agent considerations
Management have concluded that the Company controls the services it performs before they are transferred to customers based on the following and therefore determine that the Company acts as principle in all its revenue arrangements.
- The Company is primarily responsible for fulfilling the promise to provide the specified services.
- The Company has risk before the specified services have been transferred to the customer.
- The Company has discretion in establishing the price for the specified services.
In the opinion of the directors, the following judgments and estimates made in preparing the Company's financial statements for the period ended 31 December 2024 may be considered as having a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period.
Revenue from contracts with customers
The Company provides media services as part of the contracts it enters into with its customers and towards which management have concluded that delivery of the content is the only performance obligation of the Company under these contracts.
Management have also concluded that revenue from said contracts is recognised at the time the Company delivers the agreed content upon which the customer simultaneously receives and consumes the benefits provided by the Company. The fact that another entity would not need to re-perform the services that the Company has provided to date demonstrates that the customer simultaneously receives and consumes the benefits of the Company’s performance on delivery.
Revenue from the rendering of services to customers is recognised based on the price specified in the contract with the entire transaction price allocated to each separable performance obligation. During the reporting period, allocation of transaction price was made by dividing the entire transaction price by the number of separable contract performance obligations.
Principal versus agent considerations
Management have concluded that the Company controls the services it performs before they are transferred to customers based on the following and therefore determine that the Company acts as principle in all its revenue arrangements.
- The Company is primarily responsible for fulfilling the promise to provide the specified services.
- The Company has risk before the specified services have been transferred to the customer.
- The Company has discretion in establishing the price for the specified services.
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
7.Accounting estimates and judgments (continued)
Determining the lease term of contracts with renewal and termination options – Company as lessee
The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.
The Company may enter lease contracts that include extension and termination options. Management will apply judgment in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination of the lease. After the commencement date, the management will reassess the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate.
Provision for expected credit losses (ECLs) of trade receivables
For trade receivables, management apply a simplified approach in calculating ECLs based on lifetime expected credit losses at each reporting date.
In the current period the Company did not have any provision for ECLs on the trade receivables since all of the amounts are current.
ECLs are sensitive to changes in circumstances and of forecast economic conditions. The Company's historical credit loss experience and forecast of economic conditions may also not be representative of customer's actual default in the future.
As at the date of the statement of financial position, gross trade receivables were £490,960 with no expected credit loss. Any difference between the amounts actually collected in future periods and the amounts expected will be recognised in the statement of profit and loss and other comprehensive income.
Estimating the incremental borrowing rate (IBR) of leases
There are instances where management cannot readily determine the implicit interest rate of a lease and therefore, must use its IBR to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ‘would have to pay’, which requires estimation when no observable rates are available. The Company estimates the IBR using observable inputs such as the average official bank rate or interest rates if the amount is borrowed from a commercial financial lender.
The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.
The Company may enter lease contracts that include extension and termination options. Management will apply judgment in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination of the lease. After the commencement date, the management will reassess the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate.
Provision for expected credit losses (ECLs) of trade receivables
For trade receivables, management apply a simplified approach in calculating ECLs based on lifetime expected credit losses at each reporting date.
In the current period the Company did not have any provision for ECLs on the trade receivables since all of the amounts are current.
ECLs are sensitive to changes in circumstances and of forecast economic conditions. The Company's historical credit loss experience and forecast of economic conditions may also not be representative of customer's actual default in the future.
As at the date of the statement of financial position, gross trade receivables were £490,960 with no expected credit loss. Any difference between the amounts actually collected in future periods and the amounts expected will be recognised in the statement of profit and loss and other comprehensive income.
Estimating the incremental borrowing rate (IBR) of leases
There are instances where management cannot readily determine the implicit interest rate of a lease and therefore, must use its IBR to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ‘would have to pay’, which requires estimation when no observable rates are available. The Company estimates the IBR using observable inputs such as the average official bank rate or interest rates if the amount is borrowed from a commercial financial lender.
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.Tax expense (continued)
Changes in tax rates and factors affecting the future tax charges
There were no factors that may affect future tax charges.
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Page 23
SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
13.Property and equipment (continued)
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 25
SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The carrying value of loans and borrowings classified as financial liabilities measured at amortised cost approximates fair value.
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Shareholders’ contribution
Accordingly, shareholder contributions have been presented as additional contribution under equity which is payable only at the discretion of the Company.
Retained earnings
Page 27
SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
19.Leases (continued)
Related parties represent the shareholder(s), associated and related companies, directors and key management personnel, and entities controlled, jointly controlled or significantly influenced by such parties.
Pricing policies and terms of transactions with related parties are decided and approved, prior to execution, by the Company’s management.
During the reporting period, the Company entered into the following transactions with related parties in the ordinary course of business at mutually agreed terms and conditions.
Pricing policies and terms of transactions with related parties are decided and approved, prior to execution, by the Company’s management.
During the reporting period, the Company entered into the following transactions with related parties in the ordinary course of business at mutually agreed terms and conditions.
∙The provision of unsecured, non-interest bearing loan accounts with fellow group undertakings towards which the Company owed £2,110,070 as of the reporting date (2023: £55,814). Amounts owed towards said loan accounts are repayable on demand with no fixed repayment term.
∙Recharge of operational expenditure totaling £nil (2023: £58,677) to companies under common control; and
∙The provision of operational management services to the value of £nil (2023: £nil) on behalf of fellow group undertakings.
The Company's immediate and ultimate parent company is SB Media Holding Limited, a company incorporated under the Abu Dhabi Global Market Companies (Amendment No. 1) Regulations 2020 which holds a 100% interest in the total voting rights of the Company.
SB Media Holding Limited is the parent undertaking of the smallest group to consolidate these financial statements.
SB Media Holding Limited is the parent undertaking of the smallest group to consolidate these financial statements.
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SB SOCIAL MEDIA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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