Registration number:
for the Period from 1 February 2018 to
A B C Connection Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
A B C Connection Limited
Company Information
Directors |
M G R H Begley T Clark H D Swatkins |
Registered office |
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Accountants |
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A B C Connection Limited
(Registration number: 03901831)
Balance Sheet as at 30 September 2018
Note |
30 September 2018 |
(As restated) |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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Net current assets |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Capital redemption reserve |
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Profit and loss account |
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Total equity |
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For the financial period ending 30 September 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
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Director
A B C Connection Limited
Notes to the Financial Statements for the Period from 1 February 2018 to 30 September 2018
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office and principal place of business is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Going concern
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Prior period errors
Following the change in the company's ownership, the new directors identified the following errors in respect of the prior periods:
1) An error in respect of the revaluation reserve and intangible assets. The net book value of intangible assets was overstated by £302,500 in the prior periods, with the corresponding credit balance recognised in the revaluation reserve. As a result, for the year ended 31 January 2018, fixed assets and equity were both overstated by £302,500.
2) An error in respect of incorrect application of the development costs capitalisation policy, resulting in the net book value of intangible assets being understated in the prior period by £338,415. This has been dealt with in the financial statements for the year ended 30 September 2018 as the correction of a prior period error, which has the following effect: increase in the net book value of intangible fixed assets by £338,415; the increase in retained earnings previously reported of £338,415; and reduction in operating profit for the year ended 30 September 2018 of £33,392.
3) An error in respect of the profit and loss account reserve and capital redemption reserve. The capital redemption reserve was understated by £1,200 in the prior period, with the corresponding credit balance recognised in the profit and loss account reserve. This has been dealt with in the financial period ended 30 September 2018 as the correction of the prior period error, which has the effect of restating the value of capital redemption reserve and profit and loss account reserve from the previously reported value of £nil and £149,910 to £1,200 and £148,710 respectively.
4) An error in respect of the tax charge in the year ended 31 January 2018 and other debtors balance. The other debtors were understated by £27,527 in the prior period with the corresponding credit balance recognised in the tax charge in the year. This has been dealt with in the financial period ended 30 September 2018 as the correction of the prior period error, which has the effect of restating the value of the tax charge in the year and other debtors from previously reported value of £17,330 and £nil to (£10,197) and £27,527 respectively.
A B C Connection Limited
Notes to the Financial Statements for the Period from 1 February 2018 to 30 September 2018
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements
No significant judgements have been made by management in preparing these financial statements. |
Key sources of estimation uncertainty
No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when, the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
20% straight line |
Office equipment |
20% straight line |
Intangible fixed assets and amortisation
Software development costs have been capitalised and being amortised to the profit and loss account over their useful life as follows:
Asset class |
Amortisation method and rate |
Development costs |
Straight line over 5 years |
A B C Connection Limited
Notes to the Financial Statements for the Period from 1 February 2018 to 30 September 2018
Research and development costs
Development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably be regarded as assured. Any expenditure carried forward is amortised in line with the expected future sales from the related project.
Research expenditure is written off in the period in which it is incurred.
Financial instruments
Classification
Recognition and measurement
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
A B C Connection Limited
Notes to the Financial Statements for the Period from 1 February 2018 to 30 September 2018
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Trade debtors
Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Staff numbers |
The average number of persons employed by the company (including directors) during the period, was as follows:
1 February 2018 to 30 September 2018 |
Year ended 31 January 2018 |
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Average number of employees |
9 |
9 |
Intangible assets |
A B C Connection Limited
Notes to the Financial Statements for the Period from 1 February 2018 to 30 September 2018
Development Costs |
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Cost |
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At 1 February 2018 |
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At 30 September 2018 |
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Amortisation |
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At 1 February 2018 |
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Amortisation charge |
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At 30 September 2018 |
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Carrying amount |
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At 30 September 2018 |
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At 31 January 2018 |
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Tangible assets |
Plant and machinery |
Office equipment |
Total |
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Cost or valuation |
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At 1 February 2018 |
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At 30 September 2018 |
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Depreciation |
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At 1 February 2018 |
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Charge for the period |
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At 30 September 2018 |
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Carrying amount |
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At 30 September 2018 |
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At 31 January 2018 |
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A B C Connection Limited
Notes to the Financial Statements for the Period from 1 February 2018 to 30 September 2018
Debtors |
30 September 2018 |
(As restated) |
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Trade debtors |
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Other debtors |
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Prepayments |
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Corporation tax asset |
1,896 |
21,900 |
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Creditors |
Note |
30 September 2018 |
31 January 2018 |
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Due within one year |
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Trade creditors |
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Amounts due to related parties |
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Social security and other taxes |
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Outstanding defined contribution pension costs |
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Accrued expenses |
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- |
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Related party transactions |
Summary of transactions with parent
Parent undertaking |
The company is controlled by Berry Marketing Services Limited. The registered office of Berry Marketing Services Limited is Enterprise House, 21 Oxford Road, Bournemouth, BH8 8ET.