| INITIAL DIRECT LIMITED |
| Notes to the Accounts |
| for the year ended 29 February 2020 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Consolidation |
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Consolidated accounts are not prepared as the group headed by the company forms a small
group. The accounts present information about the company as an individual undertaking. |
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| 2 |
Employees |
2020 |
|
2019 |
| Number |
Number |
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Average number of persons employed by the company |
0 |
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0 |
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| 3 |
Investments |
| Investments in |
| subsidiary |
| undertakings |
| £ |
|
Cost |
|
At 1 March 2019 |
2,706 |
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At 29 February 2020 |
2,706 |
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| 4 |
Debtors |
2020 |
|
2019 |
| £ |
£ |
|
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
8,934,162 |
|
8,934,162 |
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Other debtors |
463,605 |
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463,605 |
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9,397,767 |
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9,397,767 |
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Amounts above are receivable in less than one year. |
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| 5 |
Creditors: amounts falling due within one year |
2020 |
|
2019 |
| £ |
£ |
|
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Bank loans and overdrafts |
- |
|
506,607 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
8,838,931 |
|
8,326,769 |
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Other creditors |
5,000 |
|
10,555 |
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8,843,931 |
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8,843,931 |
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| 6 |
Related party transactions |
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At the year end, amount payable to the parent company of Initial Direct Limited, is £8,838,931 (2019: £8,326,769).
Also, at the year end, amount receivable from a subsidiary of Initial Direct Limited, is £8,934,162 (2019: £8,934,162). |
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| 7 |
Controlling party |
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The immediate and ultimate parent undertaking is Gobrach LLC, a company registered in Nevada, United States. |
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| 8 |
Other information |
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INITIAL DIRECT LIMITED is a private company limited by shares and incorporated in England. Its registered office is: |
|
413 Lea Bridge Road |
|
London |
|
E10 7EA |
