|
THE RESOURCING TEAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Revenue is recognised at the fair value of the consideration received or receivable for recruitment services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Income is recognised in the period in which the services was supplied.
Revenue recognised constitutes the value of services undertaken by the company from its principal activity, which are recruitment services. These consist of:
∙Revenue from contract placement, which represents amounts billed and recognised for the placement of temporary staff. The income in relation to this service is recognised during the period in which the service is provided, which is typically billed in arrears on a weekly basis and where necessary an appropriate accrued income adjustment is recognised which represents income billed after the balance sheet for a period covered by the current financial year;
∙Revenue from permanent placement, where income billed is either based on a percentage of the candidate’s remuneration package or on a fixed fee per placement. Revenue derived from both services is typically billed to the customer on the day the candiate starts which is also the date the revenue is recognised.
|
|
|
Operating leases: the Company as lessee
|
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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.
|
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
|