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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020
CytoSorbents UK Limited is a private company limited by shares, incorporated and domiciled in England & Wales. The address of its registered office is provided on the Company Information page of the financial statements. The address of its principal place of business is 2nd Floor, 19 The Hundred, Romsey, Hampshire, SO51 8GD.
The reporting period is for more than 1 year due to this being the first set of financial statements being prepared.
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:
At the period end, the Company has net liabilities of £539,401. Included within creditors is £653,816 due to group companies. The parent company, Cytosorbents Medical Inc, has confirmed that it will continue to provide ongoing financial support to the Company for at least twelve months from the date of approval of these financial statements in order for the Company to continue to meet its debts as they fall due. Therefore the directors consider it appropriate that the financial statements are prepared on a going concern basis.
Revenue is recharged to Cytosorbents Medical Inc, being the parent entity, on a cost plus basis for cetain costs in the period that the costs are incurred.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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 Statement of Comprehensive Income.
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position 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.
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