REGISTERED NUMBER: 08807205 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

JSS Search Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

S M Beckson

Mrs V L H Beckson

J W Fargus

S J G Smith

Mrs S M E Smith

Miss R Tanda

REGISTERED OFFICE:

3 More London Riverside

London

SE1 2RE

REGISTERED NUMBER:

08807205 (England and Wales)

STRATEGY AND BUSINESS MODEL

JSS Search is a recruitment firm focused on helping clients build senior teams and supporting their business transformation.

The strategy of JSS is built around four core pillars:

1. Sector Expertise

JSS provides sector-specific expertise, with dedicated teams reflecting the firm's deep specialism and knowledge of key sectors.

2. Client Partnership

JSS acts as an extension of its clients' talent management teams. This enables the business to truly understand client needs and deliver the right people with the right expertise to drive transformational change.

3. Relationship-Driven Approach

The company is committed to building deep, long-term, and trusted relationships with clients. This is grounded in commercial understanding and the provision of best-in-class advisory services.

4. Global Reach

JSS has a growing international footprint, particularly in North America and Europe, allowing the business to support clients with global talent needs.

To extend its overall strategy, JSS has completed the integration of new technology and systems to support its teams and improve client delivery.

REVIEW OF BUSINESS

JSS Search turnover grew by 13% in 2024, reflecting the business' growth ambitions, diversified client portfolio and strength in service offerings. The business saw growth across all its divisions, which has come from both the UK and overseas markets.

Headcount continued to grow, as the business made strategic investments in key markets. Total headcount reached 68 people at the end of 2024. Productivity (gross profit/fee earner) advanced forward, as the business focussed on quality training, targeted incentives and depth of offering.

Throughout 2024, the business continued to invest in systems, efficient and robust processes and risk management. This investment sets the business up well to scale over the coming years.

Overall profitability was 28% higher than 2023, as the business made strategic hires in key positions to support the long term growth plans.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have identified the following principal risks and uncertainties that could impact the business in the current and future reporting periods:

1. The key risk to the JSS group is the performance of the UK and US economy and the potential impact on the clients of the Group. This risk may increase if the UK economy failed to achieve any significant growth in 2024. Management believes the business is well placed to minimize any potential impact through geographical diversity of clients, and diversity of business offerings.

2. JSS group has key financial risks comprising of cashflow (liquidity), foreign exchange, trade creditors/ debtors and loss of key clients.

- Liquidity is managed through robust cash flow forecasting, use of an invoice financing facility and robust credit management processes.

- Trade debtors are managed through internal credit control resources, external credit agencies, and a credit insurance facility.

- The risk of loss of key clients is minimized through diversification of client base monitoring, so that JSS is not dependent on any single client.

RECENT STRATEGIC DEVELOPMENT

To extend the overall strategy, subsequent to the year end JSS completed the acquisition of the remainder of the shares in the Intaso Group. This acquisition expands JSS's technology offering and enhances international exposure, with offices in the UK and US.

Following this acquisition, the Group is now structured into three main divisions:

- Nova Executive - Executive search and leadership hiring

- Intaso - Technology and Cyber-focused recruitment

- JSS Search - senior search and recruitment across key markets including Finance, Financial Services, Procurement, Human Resources, Public Sector and Transformation

KEY PERFORMANCE INDICATORS

The company monitors its performance on using a number of measures. These include:

2024

2023

£m

£m

Turnover

33.61

29.64

Gross profit

12.42

10.29

Gross profit margin

37%

35%

Profit before tax

0.82

0.72

Profit before tax margin

2.4%

2.4%

ON BEHALF OF THE BOARD:

S M Beckson - Director

30 September 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of recruitment services.

DIVIDENDS

Dividends of £497,000 were distributed for the year ended 31 December 2024 (2023: £520,000).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

S M Beckson

Mrs V L H Beckson

J W Fargus

S J G Smith

Mrs S M E Smith

Miss R Tanda

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Sumer Auditco Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S M Beckson - Director

30 September 2025

Opinion

We have audited the financial statements of JSS Search Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment law and company legislation and we considered the extent to which non-compliance might have a material effect on the financial statements of the Company. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and Corporation Tax Act 2010. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements.

Audit procedures performed by the audit engagement team included:

- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

- Understanding of management's internal controls designed to prevent and detect irregularities, and fraud;

- Reviewing the Company's legal costs to check for non-compliance with laws and regulations and fraud;

- Review of tax compliance

- Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing of

- Testing transactions entered into outside of the normal course of the Company's business; and

- Identifying and testing journal entries, in particular any journal entries with fraud characteristics such as journals with round numbers.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Other matters which we are required to address

The financial statements for the period ended 31 December 2023 were not subject to audit.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

David Iain Black (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Limited

Statutory Auditors

Hermes House

Fire Fly Avenue

Swindon

Wiltshire

SN2 2GA

30 September 2025

TURNOVER

3

33,610,400

29,644,340

Cost of sales

21,028,613

19,350,416

GROSS PROFIT

12,581,787

10,293,924

Administrative expenses

11,450,154

9,213,715

OPERATING PROFIT

5

1,131,633

1,080,209

Income from interest in associated undertakings

9,821

-

1,141,454

1,080,209

Interest payable and similar expenses

6

324,369

359,118

PROFIT BEFORE TAXATION

817,085

721,091

Tax on profit

7

249,334

249,183

PROFIT FOR THE FINANCIAL YEAR

567,751

471,908

Profit attributable to:

Owners of the parent

567,751

471,908

PROFIT FOR THE YEAR

567,751

471,908

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

567,751

471,908

Total comprehensive income attributable to:

Owners of the parent

567,751

471,908

FIXED ASSETS

Intangible assets

11

22,700

-

Tangible assets

12

81,516

89,632

Investments

13

Interest in associate

125,321

65,500

229,537

155,132

CURRENT ASSETS

Debtors

14

5,650,711

4,769,377

Cash at bank

428,469

224,408

6,079,180

4,993,785

CREDITORS

Amounts falling due within one year

15

6,143,258

5,030,286

NET CURRENT LIABILITIES

(64,078

)

(36,501

)

TOTAL ASSETS LESS CURRENT LIABILITIES

165,459

118,631

CREDITORS

Amounts falling due after more than one year

16

-

(19,873

)

PROVISIONS FOR LIABILITIES

21

(20,379

)

(22,408

)

NET ASSETS

145,080

76,350

CAPITAL AND RESERVES

Called up share capital

22

783

784

Retained earnings

23

144,297

75,566

SHAREHOLDERS' FUNDS

145,080

76,350

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2025 and were signed on its behalf by:

S M Beckson - Director

FIXED ASSETS

Intangible assets

11

22,700

-

Tangible assets

12

81,516

89,632

Investments

13

115,504

65,504

219,720

155,136

CURRENT ASSETS

Debtors

14

5,613,877

4,824,399

Cash at bank

396,119

180,440

6,009,996

5,004,839

CREDITORS

Amounts falling due within one year

15

6,049,193

4,961,032

NET CURRENT (LIABILITIES)/ASSETS

(39,197

)

43,807

TOTAL ASSETS LESS CURRENT LIABILITIES

180,523

198,943

CREDITORS

Amounts falling due after more than one year

16

-

(19,873

)

PROVISIONS FOR LIABILITIES

21

(20,379

)

(22,408

)

NET ASSETS

160,144

156,662

CAPITAL AND RESERVES

Called up share capital

22

783

784

Retained earnings

23

159,361

155,878

SHAREHOLDERS' FUNDS

160,144

156,662

Company's profit for the financial year

500,483

554,528

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2025 and were signed on its behalf by:

S M Beckson - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

956

121,350

122,306

Changes in equity

Purchase of own shares

(172

)

-

(172

)

Dividends

-

(520,000

)

(520,000

)

Total comprehensive income

-

474,216

474,216

Balance at 31 December 2023

784

75,566

76,350

Changes in equity

Purchase of own shares

(1

)

-

(1

)

Dividends

-

(497,000

)

(497,000

)

Total comprehensive income

-

567,203

567,203

Balance at 31 December 2024

783

145,769

146,552

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

956

121,350

122,306

Changes in equity

Purchase of own shares

(172

)

-

(172

)

Dividends

-

(520,000

)

(520,000

)

Total comprehensive income

-

554,528

554,528

Balance at 31 December 2023

784

155,878

156,662

Changes in equity

Purchase of own shares

(1

)

-

(1

)

Dividends

-

(497,000

)

(497,000

)

Total comprehensive income

-

500,483

500,483

Balance at 31 December 2024

783

159,361

160,144

Cash flows from operating activities

Cash generated from operations

1

1,487,220

1,087,236

Interest paid

(324,369

)

(359,118

)

Tax paid

(227,198

)

(22,608

)

Net cash from operating activities

935,653

705,510

Cash flows from investing activities

Purchase of intangible fixed assets

(22,700

)

-

Purchase of tangible fixed assets

(29,980

)

(28,506

)

Purchase of fixed asset investments

(50,000

)

(65,500

)

Net cash from investing activities

(102,680

)

(94,006

)

Cash flows from financing activities

Loan repayments in year

(35,641

)

(295,099

)

Amount introduced by directors

489,270

83,026

Amount withdrawn by directors

(585,540

)

(14

)

Share buyback

(1

)

(172

)

Equity dividends paid

(497,000

)

(520,000

)

Net cash from financing activities

(628,912

)

(732,259

)

Increase/(decrease) in cash and cash equivalents

204,061

(120,755

)

Cash and cash equivalents at beginning of year

2

224,408

345,163

Cash and cash equivalents at end of year

2

428,469

224,408

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

(Unaudited)

£

£

Profit before taxation

817,085

721,091

Depreciation charges

38,097

34,584

Finance costs

324,369

359,118

Finance income

(9,821

)

-

1,169,730

1,114,793

Increase in trade and other debtors

(815,107

)

(1,121,430

)

Increase in trade and other creditors

1,132,597

1,093,873

Cash generated from operations

1,487,220

1,087,236

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

428,469

224,408

Year ended 31 December 2023

31.12.23

1.1.23

(Unaudited)

£

£

Cash and cash equivalents

224,408

345,163

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

224,408

204,061

428,469

224,408

204,061

428,469

Debt

Debts falling due within 1 year

(33,336

)

13,747

(19,589

)

Debts falling due after 1 year

(19,873

)

19,873

-

(53,209

)

33,620

(19,589

)

Total

171,199

237,681

408,880

1.	GENERAL INFORMATION

JSS Search Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The group has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirement of paragraph 33.7.

The Group has applied the exemption available under paragraph 33.7 as key management personnel are deemed to be the directors of the company, therefore no additional disclosure is required.

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Investments in subsidiaries and associates

Investments in subsidiaries are measured at cost less accumulated impairment in the separate financial statements of the Parent Company.

An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in, but not to control or jointly control, the financial and operating policy decisions of the investee.

The Group has investments in an associate established in a separate legal entity. Investments in associates are recognised initially in the consolidated statement of financial position at cost (including transaction costs). Subsequently, they are accounted for using the equity method.

In the separate financial statements, the Parent Company measures investments in associates at cost less impairment.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for services rendered, net of value added taxes and discounts and rebates allowed by the Company.

Rendering of services

Turnover from a contract to provide services is recognised in the year in which the services are provided in accordance with the stage of completion of the contract 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 contract;

- the stage of completion of the contract at the end of the reporting year can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Turnover represents amounts receivable for services net of VAT and trade discounts. Sales income includes turnover earned from the acceptance of candidate or on the performance of services. Turnover is recognised as contract activity progresses to the extent that the company obtains the right to consideration in exchange for its performance under these contracts and so that for incomplete contracts it reflects the partial performance of the contractual obligations. It is measured at the fair value of the right to consideration, by reference to the value of work performed, based on amounts chargeable to customers, excluding VAT.

Turnover earned but not billed to customers is included in accrued income.

Interest income

Interest income is recognised using the effective interest rate method.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Computer equipment

-

20% on straight line basis

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised.

Depreciation is charged from when an asset is bought into use. Repairs and maintenance costs are expensed as incurred.

Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the company and the cost can be measured reliably.

Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss.

Financial instruments

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the assets original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.