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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020
Orbitonix Limited is a private company limited by shares and is incorporated in Scotland. The address of the
registered office is disclosed on the company information page. The company's principal trading activity is in
relation to new orbits of mobile development.
2.Accounting policies
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Basis of preparation of financial statements
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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, considering that the Company relies on the financial support of the parent company to continue to meet its liabilities as and when they fall due for at least 12 months from the date of approval of the financial statements. The parent company has substantial cash reserves and is well equipped to provide adequate funding to the Company to ensure it maintains a sound financial situation and is in a position to meet its debt obligations for the foreseeable future.
In his assessment, the director considered severe but plausible downside scenarios and their impact on the Company and its ability to continue as a going concern. To estimate any potential impact on the Company, the director reassessed the components of capital, liquidity, and the Company's financial position and concluded that the going concern basis is still appropriate.
A novel strain of coronavirus (COVID-19) was classified as a pandemic by the World Health Organisation on 11 March 2020, impacting companies globally. In considering going concern, the Company continues to monitor developments related to the outbreak of COVID-19 closely. The potential impacts from COVID-19 remain uncertain, including, among other things, on economic conditions, businesses and consumers.
The Company did not experience any adverse effects from COVID-19, such as delay in timelines or office shutting. It continued to maintain good progress towards its strategic milestones.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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