General Information
Simplicity Communications Limited is a private company, limited by shares, registered in , registration number 05497852, registration address Ground Floor, Unit 501 Centennial Park, Centennial Avenue, Elstree, Borehamwood, Hertfordshire, WD6 3FG.
| 1. |
Accounting Policies
Significant accounting policies
Statement of compliance
These financial statements have been prepared in compliance with FRS 102 – The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.
Basis of preparation
The financial statements have been prepared on the going concern basis and under the historical cost convention as modified by the revaluation of land and buildings and certain financial instruments measured at fair value in accordance with the accounting policies.
The financial statements are prepared in sterling which is the functional currency of the company.
Turnover
Turnover comprises the invoiced value of goods and services supplied by the company, net of Value Added Tax and trade discounts.
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 as sales net of 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.
Website cost
Planning and operating costs for the company's website are charged to the income statement as incurred.
Deferred taxation
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
Dividends
Proposed dividends are only included as liabilities in the statement of financial position when their payment has been approved by the shareholders prior to the statement of financial position date.
Intangible assets
Intangible assets (including purchased goodwill and patents) are amortised at rates calculated to write off the assets on a straight line basis over their estimated useful economic lives. Impairment of intangible assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.
Website development costs
Website development costs are capitalised once the website becomes live and is amortised on a straight line basis over 3 years.
Tangible fixed assets
Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:
| Office Equipment |
25% Reducing Balance
|
Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Provisions
Provisions are recognised when the company has a present obligation as a result of a past event which it is more probable than not will result in an outflow of economic benefits that can be reasonably estimated.
|
| 2. |
Intangible fixed assets
| Cost |
Other |
|
Total |
| |
£ |
|
£ |
| At 01 August 2018 |
10,375 |
|
10,375 |
| Additions |
- |
|
- |
| Disposals |
- |
|
- |
| At 28 July 2019 |
10,375 |
|
10,375 |
| Amortisation |
| At 01 August 2018 |
4,035 |
|
4,035 |
| Charge for period |
3,458 |
|
3,458 |
| On disposals |
- |
|
- |
| At 28 July 2019 |
7,493 |
|
7,493 |
| Net book values |
| At 28 July 2019 |
2,882 |
|
2,882 |
| At 31 July 2018 |
6,340 |
|
6,340 |
|
| 3. |
Tangible fixed assets
| Cost |
Office Equipment |
|
Total |
| |
£ |
|
£ |
| At 01 August 2018 |
8,372 |
|
8,372 |
| Additions |
344 |
|
344 |
| Disposals |
- |
|
- |
| At 28 July 2019 |
8,716 |
|
8,716 |
| Depreciation |
| At 01 August 2018 |
6,264 |
|
6,264 |
| Charge for period |
621 |
|
621 |
| On disposals |
- |
|
- |
| At 28 July 2019 |
6,885 |
|
6,885 |
| Net book values |
| Closing balance as at 28 July 2019 |
1,831 |
|
1,831 |
| Opening balance as at 01 August 2018 |
2,108 |
|
2,108 |
|
| 4. |
Stocks
|
2019
£ |
|
2018
£ |
| Stocks |
4,099 |
|
3,831 |
|
4,099 |
|
3,831 |
|
| 5. |
Debtors: amounts falling due within one year
|
2019
£ |
|
2018
£ |
| Trade Debtors |
12,435 |
|
22,718 |
| Prepayments & Accrued Income |
7,141 |
|
10,868 |
| Accrued Income |
1,899 |
|
3,091 |
| Other Debtors |
7,143 |
|
12,898 |
| Interest Receivable and Other Income |
0 |
|
0 |
| Directors' Current Accounts |
19,977 |
|
64,250 |
|
48,595 |
|
113,825 |
|
| 6. |
Creditors: amount falling due within one year
|
2019
£ |
|
2018
£ |
| Trade Creditors |
23,259 |
|
32,772 |
| Bank Loans & Overdrafts |
14,840 |
|
13,246 |
| Corporation Tax |
6,361 |
|
14,688 |
| PAYE & Social Security |
470 |
|
8,361 |
| Accrued Expenses |
32,532 |
|
14,945 |
| Other Creditors |
1 |
|
0 |
| Wages & Salaries Control Account |
1,015 |
|
1,103 |
| VAT |
20,326 |
|
8,151 |
|
98,804 |
|
93,266 |
|
| 7. |
Creditors: amount falling due after more than one year
|
2019
£ |
|
2018
£ |
| Bank Loans & Overdrafts |
38,337 |
|
55,699 |
|
38,337 |
|
55,699 |
|
| 8. |
Provisions for liabilities
|
2019
£ |
|
2018
£ |
| Deferred Tax |
0 |
|
142 |
| Charged to Profit & Loss |
0 |
|
(142) |
| Pension Provisions |
706 |
|
0 |
|
706 |
|
0 |
|
| 9. |
Share Capital
Allotted
|
2019
£ |
|
2018
£ |
|
50
Class A shares of £1.00 each |
50 |
|
50 |
|
50 |
|
50 |
|
| 10. |
Average No.of Employees
The average number of persons employed by the company (including the director) during the period was 2 (2018 - 3).
|
|
Transactions with the director
As at 28 July 2019 the amount owed to the company by the director was £19,977 (2018 - £64,250). No interest was charged in respect of this balance and the amount is repayable on demand.
During the period a debt of £3,591 was forgiven in respect of amounts owed to the company by the director's father.
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2
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