POPCORN_SHED_LIMITED - Accounts
POPCORN_SHED_LIMITED - Accounts
Popcorn Shed Limited is a private company limited by shares incorporated in England and Wales.
The principal place of business is We Hub, 2B Redbourne Avenue, London N3 2BS.
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.
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue for the foreseeable future which is based on their continuing financial support. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
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 direct issue costs.
Prior Year Adjustment
The previous year's figures have been amended to move costs from Administrative expenses to Cost of sales as the directors believe this more accurately reflects the nature of the costs. The amount of the adjustment was £11,260. There was no change on the loss for the year
The average monthly number of persons (including directors) employed by the company during the year was 2 (2017 - 2).
During the year 30,000 A Ordinary shares of £1 each were issued on 18/05/2018, which have the right to dividend, no right to vote but can be redeem at the option of the company and in the event of any winding up or return of capital to have no right to participate in the profits of the company beyond the return of the nominal value of the A Ordinary shares paid up or credited as paid up.
The Ordinary shares have a right to vote, dividends and capital on a winding up or distribution.
Note that dividends may be declared on one or more classes of shares to the exclusion of other classes and dividends of different amounts may be declared on different classes of shares.
On 12 April 2018, the company entered into an agreement of GAPCAP Limited on the following terms:
- Fixed charges.
- Floating charges (floating charge cover all the property or undertaking of the company.
- Negative pledge.
Included in Other creditors is £90,150 (2017: £90,150) owed to the directors. The amounts are interest free with no repayment date.