DOMINO_NETWORKS_LIMITED - Accounts

This report is made solely to the Board of Directors of Domino Networks Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Domino Networks Limited and state those matters that we have agreed to state to the Board of Directors of Domino Networks Limited, as a body, in this report in accordance with AAF 2/10 as detailed at icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Domino Networks Limited and its Board of Directors as a body, for our work or for this report.

The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Income is recognised upon installation or delivery of the products as appropriate or equally over the period of the relevant service delivery. Income is recognised upon installation or delivery of the products as appropriate or equally over the period of the relevant service delivery.

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items given the company operates in a fast moving technological industry.

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 have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exception:

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

On 24 September 2014 the company reclassified its shares from 1 Ordinary £1 share, in to 100 Ordinary 1p shares. Each class of shares has full voting rights and ranks pari passu in all other respects.

At the balance sheet date Mrs G J Ingleson had received an advance from the company totalling £6,137. At the same date Mr J Pearson, and his wife, had each received an advance from the company totalling £4,869.

Each advance stated above was also the largest amount advance throughout the year and has been cleared after the balance sheet date.

During the year directors of the company received dividends totalling £9,100 (2015: £13,000).