|
|
|
|
HARTLAND SHIPPING LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from bank and other third parties, loans to related parties and investments in ordinary shares.
Financial assets are measured at cost and amortised costs are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet where there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the Profit and Loss Account over the vesting period. Vesting conditions, such as performance targets, are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
|
|
Judgments in applying accounting policies and key sources of estimation uncertainty
|
The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying value of assets and liabilities. Actual results may differ from these estimates. The judgments, estimates and assumptions that have the most significant effect on the carrying value of assets and liabilities of the company are discussed below.
(i) Fair value of share options
The determination of the fair value of options granted under the Company's EMI share option scheme requires significant judgement. Management has applied judgement in selecting an appropriate valuation methodology and in determining the assumptions used in the valuation, including the fair value of the underlying shares and any discounts reflecting the rights and restrictions attaching to those shares. The valuation is inherently sensitive to changes in the key assumptions applied, and alternative reasonable assumptions could result in different valuation outcomes.
The average monthly number of employees, including directors, during the year was 5 (2024 - 5).
- 4 -
|