Kit_Digital_Limited - Accounts
Kit_Digital_Limited - Accounts
Kit Digital Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Innovation Close, Heslington, York, YO10 5ZD.
These financial statements have been prepared in accordance with The Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company's immediate parent company is Piksel Limited, with registered office 1 Innovation Close, Heslington, York, YO10 5ZD. Piksel Limited prepares group accounts which include the results of the company.
In preparing the financial statements the directors have considered the going concern basis of the company given the position of the balance sheet at the year end.
The company remains non-trading, with significant liabilities to other members of the group of which it is a subsidiary. Accordingly, the accounts have been prepared on the basis the company is not a going concern. No material adjustments have arisen as a result of the accounts being prepared on this basis.
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
There were no employees during the year apart from the director who received no remuneration.
As at the year end, there remained uncertainty surrounding a possible claim payable to HMRC in respect of Income Tax and National Insurance contributions payable on behalf of an ex-employee, against which the company has lodged an appeal. At the date of approval of these financial statements, the outcome of the appeal is not certain, however should the appeal fail the amount determined by HMRC and due to them is £35,757.
The above loans are interest free and repayable on demand; given that the financial statements are prepared on the break up basis, the liability is presented without adjustment for present values.
The company's parent is Piksel Limited, a company incorporated in England & Wales, and the ultimate controlling entity at 31 December 2017 was Piksel Inc, a company incorporated in the United States of America with registered office 1250 Broadway, Suite 1902, New York, NY 10001.
Piksel Limited is the smallest and largest group that prepares group financial statements, copies of which can be obtained from its registered office at 1 Innovation Close, Heslington, York, YO10 5ZD.
As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified although an emphasis of matter was included as follows:
Emphasis of matter