|
FREIGHT COMMODITY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
The Company is a private company limited by shares, and is incorporated in England and Wales with registered number 06979618. The registered office is 80 Cannon Street, London EC4N 6HL.
The principal activity of the Company is that of commodity derivatives broking.
2.Accounting policies
|
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The financial statements are prepared on a going concern basis. This basis is considered appropriate as the company immediate parent undertaking will continue to provide support until such time as the company is able to meet all of its liabilities as they fall due.
Turnover represents the amounts receivable from customers and related undertakings excluding value added tax on commission earned from arranging the sale of freight derivatives.
Rendering of services
Commission on cleared trades is recognised in the month that the deal is agreed. Cleared trades that settle after the balance sheet date are treated as accrued income and are discounted using an appropriate market rate. All other commissions are recognised in the month of settlement. Those commissions received in advance of settlement from customers are treated as deferred income.
Short term debtors are measured at transaction price, less any impairment.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.
|
