Contents of the Financial Statements

for the Period Ended 31 December 2018

Balance sheet

As at 31 December 2018

The notes form part of these financial statements

Balance sheet statements

For the year ending 31 December 2018 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors have chosen not to file a copy of the company's profit and loss account.

The notes form part of these financial statements

Notes to the Financial Statements

for the Period Ended 31 December 2018

• 1. Accounting policies

  Basis of measurement and preparation

  These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

  Turnover policy

  Turnover is the amount deducted and retained by Fruugo.com from customer transactions, before being passed on to the retailer. This includes commission invoiced to the retailer, excluding VAT, at the rate agreed with each retailer, as well as other fees charged to retailers and customers.

  Tangible fixed assets depreciation policy

  Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.The Company assesses at each reporting date whether tangible fixed assets are impaired. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset.Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since the last annual reporting date in the pattern by which the Company expects to consume an asset’s future economic benefits.

  Intangible fixed assets amortisation policy

  Intangible assets are stated at cost less any accumulated amortisation and accumulated impairment losses.Development costs that are directly attributable to the design and testing of identifiable websites, systems and software products controlled by the Company are recognised as intangible assets when the following criteria are met:- it is technically feasible to complete the website or software product such that it will be available for use;- management intends to complete the website or software product and use or sell it;- there is an ability to use or sell the website or software product;- it can be demonstrated how the website or software product will generate probable future economic benefits; - adequate technical, financial and other resources to complete the development and to use or sell the website or software product are available; and - the expenditure attributable to the website or software product during its development can be reliably measured.Directly attributable costs that are capitalised as part of the software product, website or system include employee and contractor costs. Other development expenditures that do not meet these criteria, as well as ongoing maintenance and costs associated with routine upgrades and enhancements, are recognised as an expense, as incurred.Development costs for software, websites and systems are carried at cost less accumulated amortisation and are amortised over their estimated useful lives of five years, from the point in which they come into use.Domain names are being amortised evenly over their estimated useful life of three years.

  Valuation information and policy

  The financial statements are prepared on the historical cost basis.

  Other accounting policies

  Measurement conventionThe financial statements are prepared on the historical cost basis.Going concernThe Company meets its day to day capital requirements through cash generated from trading and its cash resources raised from investors. The Directors believe that the Company has access to adequate financial resources and, as a consequence, believe that it is well placed to manage its business risks successfully.The Company's forecasts and projections show that the Directors have a reasonable expectation that the Company has sufficient resources to continue in existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.Basic financial instrumentsTrade and other debtors and creditorsTrade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs.Foreign currencyTransactions in foreign currencies are translated to the Company’s functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account.Gross transaction value is the GBP value of items sold in the Fruugo marketplace within the applicable period, excluding shipping fees and net of refunds associated with cancelled transactions and VAT. GTV does not represent revenue earned by Fruugo and is driven by transactions in the Fruugo marketplace. However, as Fruugo’s turnover, cost of sales and marketing expenses depend significantly on the GBP value of items sold in the Fruugo marketplace, GTV is regarded as the key indicator of the success of Fruugo retailers, the satisfaction of Fruugo shoppers, and the strength, scale and growth of the business.Interest receivable and interest payable Interest payable and similar charges include interest payable, finance charges on shares classified as liabilities and finance leases recognised in profit or loss using the effective interest method, unwinding of the discount on provisions, and net foreign exchange losses that are recognised in profit and loss.Interest income and interest payable are recognised in profit or loss as they accrue, using the effective interest method. Dividend income is recognised in the profit and loss account on the date the company’s right to receive payments is established. Foreign currency gains and losses are reported on a net basis.TaxationTax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. The following timing differences are not provided for, differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met, and differences relating to investments in subsidiaries, to the extent that it is not probable that they will reverse in the foreseeable future and the reporting entity is able to control the reversal of the timing difference. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense. Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted.Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Notes to the Financial Statements

for the Period Ended 31 December 2018

• 2. Employees

  	2018	2017
  Average number of employees during the period	34	26

  Above numbers comprise administrative staff