| Divergency FX Limited |
| Notes to the Accounts |
| for the year ended 31 January 2022 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared in accordance with Financial Reporting Standard 102 (FRS 102) and the Companies Act 2006 (as applicable to companies subject to the small company regime).
The significant accounting policies applied in the preparation of these statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
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Group accounts exemption |
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The company and its parent comprise a small group. The parent has therefore taken advantage of the exemption provided by S399 (2A) Companies Act 2006 not to prepare group accounts. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable. Turnover includes revenue earned from the rendering of services and revenue from the value of the company's share from foreign exchange spreads following the introduction of customers to foreign exchange dealer platforms. 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. Revenue from foreign exchange spreads is recognised when the associated deal contract is accepted by the trading platform. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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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. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). |
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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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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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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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Employee benefits |
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When employees have rendered service to the company, short term employees benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
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| 2 |
Employees |
2022 |
|
2021 |
| Number |
Number |
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Average number of persons employed by the company |
1 |
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1 |
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| 3 |
Debtors |
2022 |
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2021 |
| £ |
£ |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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4,915 |
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7,883 |
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Other debtors |
673 |
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- |
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5,588 |
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7,883 |
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| 4 |
Creditors: amounts falling due within one year |
2022 |
|
2021 |
| £ |
£ |
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Trade creditors |
738 |
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- |
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Taxation and social security costs |
- |
|
820 |
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Other creditors |
3,684 |
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3,001 |
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4,422 |
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3,821 |
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| 5 |
Share Capital |
Nominal |
|
2022 |
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2022 |
|
2021 |
| value |
Number |
£ |
£ |
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Ordinary shares |
£1 each |
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1,000 |
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1,000 |
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1,000 |
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| 6 |
Related party transactions |
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During the year various amounts were loaned by the parent company. This is an interest free loan repayable on demand. At the year end the balance owed to the parent is £4,915 (2021 - £7,883). |
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| 7 |
Other information |
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Divergency FX Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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Suite 137, Wey House |
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15 Church Street |
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Weybridge |
|
Surrey |
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KT13 8NA |
