LIVERPOOL_CHAMBER_COMMERC - Accounts

The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A for Small Entities.

Liverpool Chamber Commercial Services Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Suite G08-G10, Cotton Exchange Building, Bixteth Street, Liverpool, L3 9LQ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

As set out in the balance sheet the company had net current liabilities of £15,764 and overall net liabilities of £58.356. The directors have continued to adopt the going concern basis of accounting due to the fact that in the event that the company could not meet its current obligations, the parent company would provide financial support.true

The parent company, Liverpool Chamber of Commerce CIC, has sought to continue to preserve short term liquidity during the ongoing Covid-19 pandemic by making use of the following Government schemes:

• •    Coronavirus Job Retention Scheme.

• •    Deferral of the payment of the VAT liability for the quarter ended 31 March 2020.

• •    Draw down of a government loan.

Additional working capital will be available, if required, through an overdraft facility from the company's bankers.

In the light of the above actions and the end of lockdown restrictions, at the time of approving the financial statements, the directors have a reasonable expectation that its parent will able to provide adequate resources to enable Liverpool Chamber Commercial Services Limited to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing these financial statements.

Income is recognised at the fair value of the consideration received or receivable for 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.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to surplus or deficit.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in surplus or deficit in the period in which it arises.

Provision is made to acknowledge the possibility of errors being subsequently found in the process of delivery of grant-funded projects which would require full or part repayment to the grant-awarding body of past funding received. The amount provided for at the end of each year is a percentage of the grant funding received for each project which reflects the directors' estimate of the likelihood of repayment being required. Any additional provision made is deducted from turnover.

The initial provision is calculated at 7% of the relevant income and this is released evenly over a period of 7 years to reflect that any claims for repayment are time-limited. The amount so released is added to turnover.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Group relief

The financial statements have been prepared on the assumption that group relief will be used to facilitate the transfer of corporation tax losses between companies in the group. No compensation is made in respect of any loss relief between companies.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The key source of estimation uncertainty is the provision for the repayment of grants, which has been made in accordance with the directors' assessment of their likelihood of repayment.

The average monthly number of persons (including directors) employed by the company during the year was:

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

An unlimited cross company guarantee dated 9 April 2010 has been provided by Liverpool Chamber Commercial Services Limited, Liverpool Chamber of Commerce CIC and Liverpool Chamber Training Limited as security over any bank loans and overdrafts due to the bank.

The company is a 100% owned subsidiary of Liverpool Chamber of Commerce CIC. The company has taken advantage of the exemption available in Financial Reporting Standard 102 and has not therefore disclosed the transactions entered into between the group companies.

No further transactions with related parties were undertaken such as are required to be disclosed in the accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'

The ultimate control party is considered to be the members of the parent company, Liverpool Chamber of Commerce Community Interest Company, a company incorporated in England and Wales.

In 2014. the company entered into an European Union funded project to assist with the detection of soil contamination in Greece. The costs of the work were Euro 134,416 (approximately £115,000) which were fully met by EU funding.

At the time of the project, the above costs and the funding were not recorded in the company's financial statements since the expenditure was defrayed by and reimbursed to a third party to whom the project had been assigned by the company. However, during the year ended 31 March 2021 it came to light that the costs and the funding should have been recorded as income and expenditure by the company following discussions with the manager to the EU project.

The necessary bookkeeping entries have have been processed in the company's account within the year but the timing and amounts of these transactions were such that they did not affect the company's reserves reported as at 1 April 2019 nor the comparative figures for the year ended 31 March 2020.