Abbreviated Company Accounts - ARIO PHARMA LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities effective April 2008.

Intangible assets amortisation policy
Patents and licences are included at cost and depreciated in equal annual instalments over the useful economic life of the asset. A provision is made for any impairment.

Other accounting policies
Going concern
During the year under review the company has met its working capital requirements from funds received from shareholders. The directors have considered forecast cash flow information for 2016 and beyond which indicates that the company has sufficient cash resources to meet its liabilities in relation to committed and expected activities. The company will require further funds prior to the commencement of any significant new development activities, and the company is investigating opportunities to generate additional funds.
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
Taxation
Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the group’s taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
Share-based payments
The company has issued warrants to certain shareholders. These financial statements have been prepared in accordance with Financial Reporting Standard for Smaller Entities which does not require equity-settled share-based payment arrangements to be recognised as an expense.
Research and development
Research and development expenditure is written off as incurred.
Foreign currency
Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date or, if appropriate, at the forward contract rate.