Registration number: 03085506
Amdocs (UK) Limited
Annual Report and Financial Statements
for the Year Ended 30 September 2020
Amdocs (UK) Limited
Contents
Company Information
1
Strategic Report
2 to 3
Directors' Report
4 to 6
Statement of Directors' Responsibilities
7
Independent Auditor's Report
8 to 10
Statement of Comprehensive Income
11
Statement of Financial Position
12
Statement of Changes in Equity
13
Notes to the Financial Statements
14 to 47
Amdocs (UK) Limited
Company Information
Directors
Áine Kavanagh (Irish)
Sarit Galanos (Israeli)
Registered office
3rd Floor
Chiswick Park Building 4
566 Chiswick High Road
London
W4 5YE
Solicitors
Gunnercooke
1 Cornhill
London
W4 5YE
Bankers
JP Morgan Chase Bank N.A.
125 London Wall
London
EC2Y 5AJ
Auditor
Ernst & Young
Chartered Accountants
Ernst & Young Building
Harcourt Centre
Harcourt Street
Dublin
Ireland
Page 1
Amdocs (UK) Limited
Strategic Report for the Year Ended 30 September 2020
The directors present their report for the year ended 30 September 2020.
Fair review of the business
The principal activity of the company is the sale of software licences, on a non exclusive basis, in respect of customer care and billing (CCB) software systems for telecommunications companies. In this regard, the company has the non exclusive right to licence this software worldwide.
In addition, the company also provides support and maintenance services to other Amdocs group companies with respect to software licences sold by these other companies to external customers.
The company is also engaged in the purchase and sale to customers in the UK, of third party, off the shelf software/hardware acquired from external vendors which is required for the successful operation of the Amdocs software.
The company's key financial and other performance indicators during the year were as follows:
Turnover decreased from $62,126,280 in 2019 to $60,887,878 in 2020. The company made a profit before tax of $20,237,723 compared to a profit of $13,739,710 in 2019. The company made an operating profit of $3,367,635 compared to an operating profit of $4,422,800 in 2019.
After deducting tax of $3,367,571 (2019: $4,439,452) a profit of $16,870,152 (2019: profit of $9,300,258) has been transferred to reserves. Shareholder's funds at 30 September 2020 amounted to $334,751,521 (2019: $317,989,562).
Both the level of business and the year end financial position were in line with expectations.
Principal risks and uncertainties
The principal risks and uncertainties facing the company are summarised below:
- the pace with which new communications products and services emerge;
- the nature and pace of technological change within the communications industry;
- the extent to which consolidation within the communications industry will continue;
- the extent to which communications services will continue to converge;
- the increasing need for communications service providers to reduce costs and retain high value customers in a highly competitive environment; and
- general global economic conditions, particularly market conditions in the communications industry and the ongoing COVID-19 Pandemic as referred to in the Directors' Report.
To the fullest possible extent we believe the company has taken sufficient measures to mitigate these risks and uncertainties and turn these into opportunities for future growth.
Section 172(1) statement
The directors are well aware of their duty under s.172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole and, in doing so, to have regard (amongst other matters) to:
- the likely consequences of any decision in the long term;
- the interest of the company's employees;
- the need to foster the company's business relationships with suppliers, customers and others;
- the impact of the company's operations on the community and the environment;
- the desirability of the company maintaining a reputation for high standards of business conduct; and
- the need to act fairly as between members of the company.
Page 2
Amdocs (UK) Limited
Strategic Report for the Year Ended 30 September 2020
The directors understand the business and the evolving environment in which we operate and its contribution to the overall Amdocs group, and in doing so, ensure that they understand the likely consequences of their decisions in the long term.
The directors understand the importance of strong relationships with customers and suppliers. Further details on what is done to actively promote these relationships are documented in the Directors' Report.
It is also the aim of the company to create value for society in line with our company purpose of enriching lives and progressing society, such as deepening the connection between our efforts to increase diversity and inclusion to providing external future employability programs for the communities in which we work. We also place high value on protecting the environment and minimizing any negative environmental impacts of our operations and seek to create sustainable products and services. Our performance around environmental and social policies, including operational eco-efficiencies, corporate social responsibility and employment practices, have enabled the company to be recognised as a sustainability leader in our industry.
Approved by the Board on 30 September 2021 and signed on its behalf by:
.........................................
Áine Kavanagh (Irish)
Director
Page 3
Amdocs (UK) Limited
Directors' Report for the Year Ended 30 September 2020
The directors present their report and the financial statements for the year ended 30 September 2020.
Directors of the company
The directors, who held office during the year and to the date of this report, were as follows:
Áine Kavanagh (Irish)
Sarit Galanos (Israeli)
Dividends
No dividend was paid to the parent company during the year (2019: $Nil).
Financial instruments
Foreign currency exchange risk
Profit/loss on ordinary activities and amounts due from fellow subsidiary undertakings are sensitive to movements in exchange rates between US Dollar and Sterling.
Interest rate risk
Our interest expense and income are sensitive to changes in interest rates, as are our cash reserves and our loans due to/from other group undertakings.
Political donations
There were no political donations made during the year (2019: $Nil).
Engagement with suppliers, customers and other relationships
It is our strategy to develop and maintain long-term, mutually beneficial relationships with our customers, and have organized our internal operations to better anticipate and respond to our customers' needs. We believe these relationships can lead to additional product and services sales, including products and services from recent acquisitions which have expanded our offering, as well as ongoing, long-term support, system enhancement, modernization and maintenance and managed services agreements. We believe that such relationships are facilitated in many cases by the mission-critical, strategic nature of company's systems and by the added value we provide through our specialized skills and knowledge.
Page 4
Amdocs (UK) Limited
Directors' Report for the Year Ended 30 September 2020
Environmental report
The company recognises the importance of meeting globally recognised corporate responsibility standards and endeavours to minimise energy usage and support the recycling of materials.
With regard to greenhouse gas emissions, for the year ended 30 September 2020 the quantity of total emission by the company was 378.28 tonnes of carbon dioxide equivalent (tCO2e).
The GHG Protocol Corporate Accounting and Reporting standard (revised edition) and emission factors from the UK government's GHG Conversion Factors for Company Reporting 2020 have been used to calculate the below disclosures. The standard requires a statement of relevant intensity ratios, which are an expression of the quantity of emission in relation to a quantifiable factor of the business activity.
GHG emission and energy consumption data for year 1 October 2019 to 30 September 2020
2020
KgCO2e
AC and office gas consumption (scope 1)
8,850
Office electricity consumption (scope 2)
115,691
Business travel (scope 3)
253,742
378,283
Intensity ratios
2020
KgCO2e per employee
2,664
Future developments
It is the intention of the directors to continue the current activities of the company.
Corporate governance
The company has not applied the UK Corporate Governance Code 2018 for the financial year due to the size of the company and its status as a limited company. The directors have reviewed the UK Corporate Governance Code 2018 during the financial year, identifying and implementing sections that they consider best practice for a company of this size. Any sections that have not been implemented have been noted and will be re-assessed on a period basis, as will the requirement for full application of governance code.
Page 5
Amdocs (UK) Limited
Directors' Report for the Year Ended 30 September 2020
Going concern
On 11 March 2020 the World Health Organization declared the coronavirus ("COVID-19") outbreak a “pandemic”. This outbreak has resulted in a widespread health crisis that has and may continue to adversely affect the economies and financial markets worldwide. While the pandemic does create a level of uncertainty for the company, management has an appropriate response plan in place and has taken proactive measures to ensure the company can continue to successfully operate for the foreseeable future. The company did not have any significant negative impact to the business, results of operation and financial performance as a direct result of COVID-19. It is the company's view, to the best of current knowledge, that COVID-19 will not have a material adverse impact on its ability to continue as a going concern.
In addition, the company has received a letter of support from Amdocs Limited which commits to making support available if it is required at a point in time covering the period of twelve months from the date of approval of the financial statements. After making enquiries, the directors have a reasonable expectation that the company will have sufficient resources to continue to trade satisfactorily and hence continue to adopt the going concern basis in preparing these financial statements.
Events after the reporting date
There were no significant events after the reporting date that require disclosure.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditor
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Ernst & Young as auditor of the company is to be proposed at the forthcoming Annual General Meeting.
Approved by the Board on
30 September 2021
30 September 2021
and signed on its behalf by:
.........................................
Áine Kavanagh (Irish)
Director
Page 6
Amdocs (UK) Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework' ("FRS 101"). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
•
select suitable accounting policies and apply them consistently;
•
make judgements and accounting estimates that are reasonable and prudent;
•
state whether FRS 101 has been followed, subject to any material departures disclosed and explained in the financial statements; and
•
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Board on 30 September 2021 and signed on its behalf by:
.........................................
Áine Kavanagh (Irish)
Director
Page 7
Amdocs (UK) Limited
Independent Auditor's Report to the Members of Amdocs (UK) Limited
Opinion
We have audited the financial statements of Amdocs (UK) Limited (the "company") for the year ended 30 September 2020, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, and the related notes to including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 101 'Reduced Disclosure Framework' (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
•
give a true and fair view of the state of the company's affairs as at 30 September 2020 and of its profit for the year then ended;
•
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
•
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report below. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
•
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
•
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Page 8
Amdocs (UK) Limited
Independent Auditor's Report to the Members of Amdocs (UK) Limited
Other information
The other information comprises the information included in the annual report set out on pages __ to __, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
•
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
•
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
•
adequate accounting records have not been kept; or
•
the financial statements are not in agreement with the accounting records; or
•
certain disclosures of directors' remuneration specified by law are not made; or
•
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 7, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Page 9
Amdocs (UK) Limited
Independent Auditor's Report to the Members of Amdocs (UK) Limited
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
Dermot Quinn (Senior Statutory Auditor)
For and on behalf of Ernst & Young, Statutory Auditor
Ernst & Young Building
Harcourt Centre
Harcourt Street
Dublin
Ireland
30 September 2021
Page 10
Amdocs (UK) Limited
Statement of Comprehensive Income for the Year Ended 30 September 2020
2020
2019
Note
$
$
Turnover
3
60,887,878
62,126,280
Cost of sales
(47,910,415)
(52,869,575)
Gross profit
12,977,463
9,256,705
Administrative expenses
(9,609,828)
(4,833,905)
Operating profit
4
3,367,635
4,422,800
Other interest receivable and similar income
5
516,036
1,323,557
Interest payable and similar charges
6
(286,089)
(572,877)
Other gains and losses
7
(1,817,205)
-
Dividend income
13
18,457,346
8,566,230
16,870,088
9,316,910
Profit on ordinary activities before tax
20,237,723
13,739,710
Tax on profit on ordinary activities
10
(3,367,571)
(4,439,452)
Profit for the financial year and total comprehensive income
16,870,152
9,300,258
The above results were derived from continuing operations.
The notes on pages 14 to 47 form an integral part of these financial statements.
Page 11
Amdocs (UK) Limited
(Registration number: 03085506)
Statement of Financial Position as at 30 September 2020
30 September
30 September
2020
2019
Note
$
$
Fixed assets
Tangible assets
11
2,536,828
3,208,250
Intangible assets
12
30,885
48,419
Right-of-use assets
19
3,058,365
-
Investments
13
301,828,900
271,828,900
Other financial assets
14
2,582,795
-
310,037,773
275,085,569
Current assets
Trade and other debtors
15
43,150,879
65,257,281
Cash at bank and in hand
3,463
3,320
Deferred tax assets
10
132,408
173,811
43,286,750
65,434,412
Creditors: Amounts falling due within one year
16
(16,056,988)
(22,166,884)
Net current assets
27,229,762
43,267,528
Total assets less current liabilities
337,267,535
318,353,097
Creditors: Amounts falling due after more than one year
17
(2,461,476)
(256,759)
Provisions for liabilities
18
(54,538)
(106,776)
Net assets
334,751,521
317,989,562
Capital and reserves
Called up share capital
22
15,333,171
15,333,171
Share premium reserve
155,056,692
155,056,692
Other reserves
23
53,000,000
53,000,000
Profit and loss account
111,361,658
94,599,699
Shareholder's funds
334,751,521
317,989,562
Approved by the Board on
30 September 2021
30 September 2021
and signed on its behalf by:
.........................................
Áine Kavanagh (Irish)
Director
The notes on pages 14 to 47 form an integral part of these financial statements.
Page 12
Amdocs (UK) Limited
Statement of Changes in Equity for the Year Ended 30 September 2020
Share premium reserve
Profit and loss account
Share capital
Other reserves
Total
$
$
$
$
$
At 1 October 2019
15,333,171
155,056,692
53,000,000
94,599,699
317,989,562
Profit for the year
-
-
-
16,870,152
16,870,152
Total comprehensive income
-
-
-
16,870,152
16,870,152
Share based payment transactions
-
-
367,030
-
367,030
Transfer to profit and loss reserve
-
-
(367,030)
367,030
-
Recharge from ultimate parent
-
-
-
(475,223)
(475,223)
At 30 September 2020
15,333,171
155,056,692
53,000,000
111,361,658
334,751,521
Share premium reserve
Profit and loss account
Share capital
Other reserves
Total
$
$
$
$
$
At 1 October 2018
15,333,171
155,056,692
-
85,644,964
256,034,827
Profit for the year
-
-
-
9,300,258
9,300,258
Total comprehensive income
-
-
-
9,300,258
9,300,258
Capital contribution received during the year
-
-
53,000,000
-
53,000,000
Share based payment transactions
-
-
249,775
-
249,775
Transfer to profit and loss reserve
-
-
(249,775)
249,775
-
Recharge from ultimate parent
-
-
-
(595,298)
(595,298)
At 30 September 2019
15,333,171
155,056,692
53,000,000
94,599,699
317,989,562
The notes on pages 14 to 47 form an integral part of these financial statements.
Page 13
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of preparation
The financial statements have been prepared in accordance with Financial Reporting Standard 101, ‘Reduced Disclosure Framework', issued by the Financial Reporting Council and the Companies Act 2006.
The financial statements have been prepared under the historical cost convention, except that as disclosed in the accounting policies, certain items are shown at fair value, and on the going concern basis.
The financial statements are denominated in US dollar ("$") which is the functional currency of the company.
Summary of disclosure exemptions
The company has taken advantage of the following disclosure exemptions under FRS 101:
(a) the requirements of IFRS 7 Financial Instruments: Disclosures;
(b) the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement;
(c) the requirements of paragraphs 10(d), 10(f), 38A-D, 40A-D and 134-136 of IAS 1 Presentation of Financial Statements;
(d) the requirements of IAS 7 Statement of Cash Flows;
(e) the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;
(f) the requirements of paragraph 17 of IAS 24 Related Party Disclosures;
(g) the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member;
(h) the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of paragraph 73(e) of IAS 16 Property, Plant and Equipment and paragraph 118(e) of IAS 38 Intangible Assets;
(i) the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets;
(j) the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share based Payment: because the share based payments concerns the instruments of another group entity;
(k) the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers; and
(l) the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases.
Page 14
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Changes in accounting policy
New standards, interpretations and amendments effective
The following have been applied for the first time from 1 October 2019 and have had an effect on the financial statements:
IFRS 16 Leases
The company, for the first time, has applied IFRS 16 Leases which became effective for periods beginning on or after 1 January 2019.
IFRS 16 introduces new or amended requirements with respect to lease accounting. It introduces significant changes to the lessee accounting by removing the distinction between operating and finance leases and requiring the recognition of right-of-use assets and lease liabilities at the lease commencement for all leases, except for short-term leases and leases of low value assets. In contrast to lessee accounting, the requirements for lessor accounting have remained largely unchanged. The impact of the adoption of IFRS 16 on the company's financial statements is described below.
The company has adopted IFRS 16 retrospectively from 1 October 2019, but has not restated comparatives for the 2019 reporting period, as permitted under the specific transition provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognised in the opening balance sheet on 1 October 2019.
On transition, the company measures the lease liability at the present value of the lease payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available or the company's incremental borrowing rate. The right-of-use assets are measured at an amount equal to the lease liability adjusted for any prepaid or accrued lease payments that existed at the date of initial application.
The company used the following practical expedients when applying IFRS 16 to leases previously classified as operating leases under IAS 17:
- Applied a single discount rate to a portfolio of leases with similar characteristics;
- Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term;
- Excluded initial direct costs from measuring the right-of-use assets at the date of initial application;
- Adjusted the right-of-use assets by the amount of IAS 37 onerous contract provision immediately before the date of initial application, as an alternative to an impairment review; and
- Used hindsight when determining the lease term of the contract contains options to extend or terminate the lease.
On transition to IFRS 16, the company recognised an additional $1,681,326 of right-of-use assets and lease liabilities.
Page 15
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
2019
$
Operating lease commitment at 30 September 2019 as disclosed in the company's financial statements
1,635,463
Discounted using the incremental borrowing rate at 1 October 2019
1,681,326
Recognition exemptions
-
Lease liabilities recognised at 1 October 2019
1,681,326
When measuring lease liabilities, the company discounted lease payments using its incremental borrowing rate at 1 October 2019. The weighted-average rate applied is 1.01%.
None of the other standards, interpretations and amendments effective for the first time from 1 October 2019 have had a material effect on the financial statements.
Going concern
On 11 March 2020 the World Health Organization declared the coronavirus ("COVID-19") outbreak a “pandemic”. This outbreak has resulted in a widespread health crisis that has and may continue to adversely affect the economies and financial markets worldwide. While the pandemic does create a level of uncertainty for the company, management has an appropriate response plan in place and has taken proactive measures to ensure the company can continue to successfully operate for the foreseeable future. The company did not have any significant negative impact to the business, results of operation and financial performance as a direct result of COVID-19. It is the company's view, to the best of current knowledge, that COVID-19 will not have a material adverse impact on its ability to continue as a going concern.
In addition, the company has received a letter of support from Amdocs Limited which commits to making support available if it is required at a point in time covering the period of twelve months from the date of approval of the financial statements. After making enquiries, the directors have a reasonable expectation that the company will have sufficient resources to continue to trade satisfactorily and hence continue to adopt the going concern basis in preparing these financial statements.
Group financial statements
Section 400 of the Companies Act 2006 exempts an intermediate parent entity whose own parent entity is established under the law of an EEA state from the need to prepare consolidated financial statements. The company has availed itself of this exemption and consequently has prepared these financial statements on a stand alone basis.
Investments in subsidiary companies
Subsidiaries are all entities that the company controls. Investments in subsidiary companies are initially recognised at cost, being the fair value of the consideration given. After initial recognition investments are stated at cost less provision for impairment in accordance with IAS 36 "Impairment of assets". If the carrying amount exceeds the recoverable amount then the carrying value of the investment is written down to its recoverable amount.
Page 16
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Revenue recognition
The company recognises revenue under the five-step methodology required under IFRS 15, which requires the company to identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations identified, and recognise revenue when (or as) each performance obligation is satisfied.
The company's primary revenue categories, related performance obligations, and associated recognition patterns are as follows:
(i.) Revenue recognition for projects
The company usually sells its software licenses as part of an overall solution offered to a customer including significant customisation, modification, implementation and integration. Those services are deemed essential to the software. As a result, revenue related to these projects is recognised over time, usually based on a percentage that incurred labour effort to date bears to total projected labour effort. Incurred effort represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Revenue from customisation, implementation, modification and integration services is also recognised over the course of the projects. When total cost estimates for these types of arrangements exceed revenues in a fixed-price arrangement, the estimated losses are recognised immediately based upon the cost applicable to the delivering unit. Significant judgement is required when estimating total labour effort and progress to completion on these arrangements, as well as whether a loss is expected to be incurred on the project.
As a significant portion of the company's revenue is satisfied over time as work progresses, the annual operating results may be affected by the size and timing of the initiation of customer projects as well as the company's progress in completing such projects.
(ii.) Revenue recognition for subsequent license fee
Subsequent license fee revenue is recognised when the customer has access to the license and the right to use and benefit from the license. In cases when the conditions require delivery, then delivery must have occurred for purposes of revenue recognition. Subsequent license fee is based on a customer's subscriber level, transaction volume or other measurements when greater than the level specified in the contract for the initial license fee.
(iii.) Revenue recognition for term-based license and perpetual license
Revenue related to software solutions that do not require significant customisation, implementation and modification are recognised upon delivery.
(iv.) Revenue recognition for maintenance
Maintenance revenue is recognised rateably over the term of the maintenance agreement.
Page 17
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Revenue recognition (continued)
(v.) Revenue recognition for ongoing services
Revenue from ongoing support services is recognised over time as services are performed, using one method of measuring performance such as time elapsed, output produced, volume of data processed or subscriber count that provides the most faithful depiction of the transfer of services.
(vi.) Revenue recognition for managed services arrangement
Managed services arrangements include management of data centre operations and IT infrastructure, application management and ongoing support, management of end-to-end business processes, and managed transformation that includes both a transformation project as well as taking over managed services responsibility. The revenue from managed services arrangement is recognised for each individual performance obligation according to its relevant revenue category, including but not limited to, revenue from the management of a customer's operations, revenue from projects and revenue from ongoing support services. Revenue from the management of a customer's operations pursuant to managed services arrangements, is recognised over time as services are performed, using one method of measuring performance such as time elapsed, output produced, volume of data processed or subscriber count that provides the most faithful depiction of the transfer of services, pursuant to the specific contract terms of the managed services arrangement. Typically, managed services arrangements are long term in duration and are not subject to significant seasonality.
(vii.) Revenue Recognition for third-party hardware and software
Third-party hardware sales are recognised upon delivery or installation, and revenue from third-party software sales is recognised upon delivery. Maintenance revenue is recognised rateably over the term of the maintenance agreement. Revenue from third-party hardware and software sales is recorded at gross amount for transactions in which the company controls the third-party hardware and software prior to fulfilling the performance obligation. In specific circumstances where the company does not meet the above criteria, revenue is recognised on a net basis. In certain arrangements, the company may earn revenue from other third-party services which is recorded at a gross amount as it controls the services before transferring them to the customer.
(viii.) Arrangements with multiple performance obligations
Many of the company's agreements include multiple performance obligations. The company allocates the transaction price for each contract to each performance obligation identified in the contract based on the relative stand-alone selling price (SSP). The company determines SSP for the purposes of allocating the transaction price to each performance obligation by considering several external and internal factors including, but not limited to, transactions where the specific performance obligation sold separately, historical actual pricing practices and geographies in which the company offers its services in accordance with IFRS 15. The determination of SSP requires the exercise of judgement. If a specific performance obligation is sold for a broad range of amounts (that is, the selling price is highly variable) or if the company has not yet established a price for that good or service, and the good or service has not previously been sold on a stand-alone basis (that is, the selling price is uncertain), the company applies the residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSPs with any residual amount of transaction price allocated to the remaining specific performance obligation.
Page 18
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Revenue recognition (continued)
Billing terms and conditions generally vary by contract category. Amounts are typically billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of contractual milestones. In cases where timing of revenue recognition significantly differs from the timing of invoicing, the company is considering whether a significant financing component exists. The company elected to use the practical expedient in assessing the financing component in contracts where the time between cash collection and performance is less than one year.
Contract assets and contract liabilities
In case the services rendered by the company as of the reporting date exceed the payments made by the customer as of that date and the company does not have the unconditional right to charge the client for the services rendered, a contract asset is recognised. The company assesses a contract asset for impairment in accordance with IFRS 9 using the simplified approach permitted by IFRS 9 which requires expected lifetime losses to be recognised from initial recognition of the contract asset. An impairment of a contract asset is measured, presented and disclosed on the same basis as a financial asset that is within the scope of IFRS 9.
If the payments made by a customer exceed the services rendered under the relevant contract, a contract liability is recognised. The company recognises any unconditional rights to consideration separately from contract assets as a trade receivable because only the passage of time is required before the payment is due.
Contract assets are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the company, and a failure to make contractual payments for a period of greater than 180 days past due.
Cost to obtain or fulfil contracts with customers
The company recognises the incremental costs incurred by the company to obtain contracts with customers and the costs incurred in fulfilling contracts with customers that are directly associated with the contract as an asset if those costs are expected to be recoverable, and record them in ''Other assets'' in the statement of financial position. Incremental costs of obtaining contracts are those costs that the company incurs to obtain a contract with a customer that would not have been incurred if the contract had not been obtained. The asset is amortised on a straight-line basis over the term of the specific contract it relates to, consistent with the pattern of recognition of the associated revenue and recognised in ''cost of sales'' in the statement of comprehensive income. Additionally the asset is assessed for impairment and any impairment loss is recognised in ''cost of sales'' in the statement of comprehensive income. The company recognises the incremental costs of obtaining a contract as an expense when incurred if the amortisation period of the asset that the entity otherwise would have recognised is one year or less.
Foreign currency transactions and balances
Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Page 19
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Tax
The tax expense for the period comprises of current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Where a group undertaking transferred losses to the company, the amount paid in excess of the benefit received is recognised in administrative expenses in the statement of comprehensive income.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
The asset's residual values, useful lives methods are reviewed, and adjusted if appropriate, at each financial year end.
Expenditure for repairs and maintenance of tangible assets is charged to the statement of comprehensive income. Expenditure for significant improvements and renovations is capitalised if it is considered that it adds value to the tangible assets.
An item of tangible assets is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the statement of comprehensive income in the year the item is derecognised.
Page 20
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Depreciation
Depreciation is charged so as to write off the cost of tangible assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class
Depreciation method and rate
Office equipment
5 - 10 years
Computer equipment
3.5 - 7 years
Shorter of the estimated useful life and the term of the lease
Right-of-use assets
Shorter of the estimated useful life and the term of the lease
Leasehold improvements
Intangible assets
Intangible assets represent customer relationships and acquired computer software.
Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.
Amortisation
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life is reviewed at least once during the reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and treated as changes in accounting estimates. The amortisation on intangible assets with finite lives is recognised in profit or loss in the expense category consistent with the function of the intangible asset.
Asset class
Amortisation method and rate
Acquired computer software
4 years
Customer relationships
3 years
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
Provisions
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. Where the company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain the expense relating to any provision is presented in the statement of comprehensive income net of any reimbursement. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a borrowing cost.
Page 21
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Leases effective before 1 October 2019
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases effective after 1 October 2019
Company as a lessee
Definition
A lease is a contract, or a part of a contract, that conveys the right to use an asset or a physically distinct part of an asset (“the underlying asset”) for a period of time in exchange for consideration. Further, the contract must convey the right to the company to control the asset or a physically distinct portion thereof. A contract is deemed to convey the right to control the underlying asset if, throughout the period of use, the company has the right to:
· Obtain substantially all the economic benefits from the use of the underlying asset, and;
· Direct the use of the underlying asset (e.g. direct how and for what purpose the asset is used).
Initial recognition and measurement
The company initially recognises a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term.
The lease liability is measured at the present value of the lease payments to be made over the lease term. The lease payments include fixed payments, purchase options at exercise price (where payment is reasonably certain), expected amount of residual value guarantees, termination option penalties (where payment is considered reasonably certain) and variable lease payments that depend on an index or rate.
The right-of-use asset is initially measured at the amount of the lease liability, adjusted for lease prepayments, lease incentives received, the company's initial direct costs (e.g., commissions) and an estimate of restoration, removal and dismantling costs.
Page 22
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Leases effective after 1 October 2019 (continued)
Subsequent measurement
After the commencement date, the company measures the lease liability by:
(a) Increasing the carrying amount to reflect interest on the lease liability;
(b) Reducing the carrying amount to reflect the lease payments made; and
(c) Re-measuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in substance fixed lease payments or on the occurrence of other specific events.
Interest on the lease liability in each period during the lease term is the amount that produces a constant periodic rate of interest on the remaining balance of the lease liability. Interest charges are included in finance cost in the statement of comprehensive income, unless the costs are included in the carrying amount of another asset applying other applicable standards. Variable lease payments not included in the measurement of the lease liability, are included in operating expenses in the period in which the event or condition that triggers them arises.
The related right-of-use asset is accounted for using the Cost model in IAS 16 and depreciated and charged in accordance with the depreciation requirements of IAS 16 Property, Plant and Equipment as disclosed in the accounting policy for tangible assets. Adjustments are made to the carrying value of the right-of-use asset where the lease liability is re-measured in accordance with the above. Right-of-use assets are tested for impairment in accordance with IAS 36 Impairment of assets as disclosed in the accounting policy in impairment.
Page 23
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Leases effective after 1 October 2019 (continued)
Lease modifications
If a lease is modified, the modified contract is evaluated to determine whether it is or contains a lease. If a lease continues to exist, the lease modification will result in either a separate lease or a change in the accounting for the existing lease. The modification is accounted for as a separate lease if both:
(a) The modification increases the scope of the lease by adding the right to use one or more underlying assets; and
(b) The consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract.
If both of these conditions are met, the lease modification results in two separate leases, the unmodified original lease and a separate lease. The company then accounts for these in line with the accounting policy for new leases. If either of the conditions are not met, the modified lease is not accounted for as a separate lease and the consideration is allocated to the contract and the lease liability is re-measured using the lease term of the modified lease and the discount rate as determined at the effective date of the modification.
For a modification that fully or partially decreases the scope of the lease (e.g., reduces the square footage of leased space), IFRS 16 requires a lessee to decrease the carrying amount of the right-of-use asset to reflect partial or full termination of the lease. Any difference between those adjustments is recognised in profit or loss at the effective date of the modification.
For all other lease modifications which are not accounted for as a separate lease, IFRS 16 requires the lessee to recognise the amount of the re-measurement of the lease liability as an adjustment to the corresponding right-of-use asset without affecting profit or loss.
Short term and low value leases
The company has made an accounting policy election, by class of underlying asset, not to recognise lease assets and lease liabilities for leases with a lease term of 12 months or less (i.e., short-term leases).
The company has made an accounting policy election on a lease-by-lease basis, not to recognise lease assets on leases for which the underlying asset is of low value.
Lease payments on short term and low value leases are accounted for on a straight line bases over the term of the lease or other systematic basis if considered more appropriate. Short term and low value lease payments are included in operating expenses in the statement of comprehensive income.
Page 24
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Leases effective after 1 October 2019 (continued)
Sub leases
If an underlying asset is re-leased by the company to a third party and the company retains the primary obligation under the original lease, the transaction is deemed to be a sublease. The company continues to account for the original lease (the head lease) as a lessee and accounts for the sublease as a lessor (intermediate lessor). When the head lease is a short term lease, the sublease is classified as an operating lease. Otherwise, the sublease is classified using the classification criteria applicable to Lessor Accounting in IFRS 16 by reference to the right-of-use asset in the head lease (and not the underlying asset of the head lease).
After classification lessor accounting is applied to the sublease.
Company as lessor
Leases in which the company does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.
Impairment of non-financial assets
The company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the company makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash generating unit's fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in statement of comprehensive income. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset's revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.
Page 25
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
The difference between fair value of the amount received for share capital and the nominal value of the share capital issued is transferred to the share premium account.
Dividends
Dividend distribution to the company's shareholders is recognised as a liability in the company's financial statements in the period in which the dividends are approved by the company's shareholders.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a separate entity and has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
For defined contribution plans contributions are paid to publicly or privately administered pension insurance plans on a mandatory or contractual basis. The contributions are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as an asset.
Page 26
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Share based payments
Employees of the company receive remuneration in the form of share-based payment transactions, whereby employees render services as consideration for equity instruments (equity-settled transactions). The cost of equity-settled transactions with employees is measured by reference to the fair value at the date at which they are granted and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award.
Fair value is determined by using an appropriate pricing model. In valuing equity-settled transactions, no account is taken of any vesting conditions, other than conditions linked to the price of the shares (market conditions) of the company's ultimate parent undertaking, Amdocs Limited.
The cost of equity-settled transactions are recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employee becomes fully entitled to the award ("vesting date"). The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group's best estimate of the number of equity instruments that will ultimately vest. The charge or credit for a period, reflected in the statement of comprehensive income, represents the movement in cumulative expense recognised as at the beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vesting irrespective of whether or not the market condition is satisfied, provided that all other performance conditions are satisfied.
Where the terms of an equity-settled award are modified or a new award is designated as replacing a cancelled or settled award, the cost based on the original award terms continues to be recognised over the original vesting period. In addition, an expense is recognised over the remainder of the new vesting period for the incremental fair value of any modification, based on the difference between the fair value of the original award and the fair value of the modified award, both as measured on the date of the modification. No reduction is recognised if this difference is negative.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any cost not yet recognised in the statement of comprehensive income for the award is expensed immediately. Any compensation paid up to the fair value of the award at the cancellation or settlement date is deducted from equity, with any excess over fair value being treated as an expense in the statement of comprehensive income.
Page 27
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
(i) Financial assets
Initial recognition and measurement
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
- the assets are held within a business model whose objective is to hold assets in order to collect contractual cash flows; and
- the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
If either of the above two criteria is not met, the financial assets are classified and measured at fair value through the profit or loss (FVTPL).
If a financial asset meets the amortised cost criteria, the company may choose to designate the financial asset at FVTPL. Such an election is irrevocable and applicable only if the FVTPL classification significantly reduces a measurement or recognition inconsistency.
A financial asset is measured at FVTOCI only if it meets both of the following conditions and is not designated as at FVPTL:
- the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
- the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investments that is not held for trading, the company may irrevocably elect to present subsequent changes in fair value in OCI. This election is made on an investment-by-investment basis.
If an equity investment is designated as FVTOCI, all gains and losses, except for dividend income, are recognised in other comprehensive income and are not subsequently included in the statement of income.
Financial assets not otherwise classified above are classified and measured as FVTPL.
Page 28
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Financial instruments (continued)
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
• Financial assets at amortised cost (debt instruments);
• Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments);
• Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments); and
• Financial assets at fair value through profit or loss.
The company has not designated any financial assets at fair value through OCI.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognised in the statement of comprehensive income. This category includes minority interest in equity investments which the Company has not irrevocably elected to classify at fair value through OCI. Dividends on minority interest in equity investments are recognised as other income in the statement of comprehensive income when the right of payment has been established.
Financial assets at amortised cost (debt instruments)
This category is the most relevant to the company. Financial assets at amortised cost are subsequently measured using the effective interest rate ("EIR") method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
The company's financial assets at amortised cost includes trade and other debtors.
Page 29
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Financial instruments (continued)
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the company's statement of financial position) when:
• The rights to receive cash flows from the asset have expired; or
• The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through' arrangement; and either (a) the company has transferred substantially all the risks and rewards of the asset, or (b) the company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the company continues to recognise the transferred asset to the extent of its continuing involvement. In that case, the company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the company could be required to repay.
Impairment of financial assets
The company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
ECLs are recognised in three stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
For trade receivables and contract assets, the company applies a simplified approach in calculating ECLs. Therefore, the company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.
The company considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the company may also consider a financial asset to be in default when internal or external information indicates that the company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.
Page 30
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
1
Accounting policies (continued)
Financial instruments (continued)
(ii) Financial liabilities
Initial recognition and measurement
Financial liabilities are classified at initial recognition as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
The company's financial liabilities may include trade and other payables and loans and borrowings including bank overdrafts.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.
The company has not designated any financial liability as at fair value through profit or loss.
Loans and borrowings
This is the category most relevant to the company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.
(iii) Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
Page 31
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
2
Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements required management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the period. However the nature of estimation means the actual outcomes could differ from those estimates. The following are the company's key sources of estimation uncertainty:
Impairment of non-financial assets
The company assesses at each reporting date whether an asset may be impaired. If any such indication exists the company estimates the recoverable amount of the asset. Where there are indicators of impairment of individual assets, the company performs impairment tests based on fair value less cost to sell or a value in use calculation. The fair value less costs to sell calculation is based on available data from binding sales transactions in an arm's length transaction on similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow model.
Fair value of unquoted equity investments
The company determined the fair value of the unquoted equity investments by considering any price changes in subsequent share issues by the same issuer.
Leases - Estimating the incremental borrowing rate
The company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate ("IBR") to measure lease liabilities. The IBR is the rate of interest that the company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the company ‘would have to pay', which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary's functional currency). The company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary's stand-alone credit rating).
3
Turnover
Revenue was wholly derived from the company's principal activity. It comprises the value of goods and services sold, excluding VAT. The company has recognised the following amounts in relation to revenue in the statement of comprehensive income. Revenue is derived from 15 (2019: 15) customers, located mainly in Europe, South America and the rest of the world. Revenue from customer was as follows:
2020
2019
$
$
Contracts with customers
60,887,878
62,126,280
Page 32
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
3
Turnover (continued)
The following table provides information about contract assets and contract liabilities
30 September
30 September
2020
2019
$
$
Contract assets
3,909,599
10,981,576
Contract liabilities
(2,130,438)
(5,417,621)
Net unbilled contract assets
1,779,161
5,563,955
Revenue recognised during the year ended 30 September 2020, which was included in 'Contract liabilities' as of 1 October 2019 was $4,984,217 (2019: $1,832,114). Amounts billed during the year ended 30 September 2020, which was included in 'Contract assets' as of 1 October 2019 was $10,631,118 (2019: $9,851,204).
Billing terms and conditions generally vary by contract category. Amounts are typically billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of contractual milestones. In cases where timing of revenue recognition significantly differs from the timing of invoicing, the company considers whether a significant financing component exists. The company elected to use the practical expedient in assessing the financing component in contracts where the time between cash collection and performance is less than one year.
4
Operating profit
Arrived at after charging/(crediting)
2020
2019
$
$
Depreciation - tangible assets
1,136,486
1,036,418
Depreciation - right of use assets - other
838,226
-
Amortisation expense
22,992
45,251
Foreign exchange losses/(gains)
798,454
(364,539)
Operating lease expense - property
-
309,008
Management fee income
(1,244,436)
-
Loss on disposal of property, plant and equipment
-
4,601
Auditor's remuneration
52,704
52,704
5
Other interest receivable and similar income
2020
2019
$
$
Interest income on bank deposits
2
10
Other finance income
38,994
4,966
477,040
Interest on loans to group undertakings
1,318,581
1,323,557
516,036
Page 33
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
6
Interest payable and similar charges
2020
2019
$
$
Bank charges
127,404
129,154
Interest on loans from group undertakings
103,624
443,548
Interest expense on other financing liabilities
30,331
175
Other finance costs
6
-
Interest expense on leases - property
24,724
-
286,089
572,877
7
Other gains and losses
The analysis of the company's other gains and losses for the year is as follows:
2020
2019
$
$
Loss from changes in investment valuation
(1,817,205)
-
Other gains relate to the decrease in fair value attributable to a minority equity investment held by the company.
8
Staff costs
The aggregate payroll costs were as follows:
2020
2019
$
$
Wages and salaries
17,306,783
18,347,344
Social security costs
2,132,439
2,162,879
Pension costs, defined contribution scheme
908,379
1,030,688
20,347,601
21,540,911
Included in wages and salaries is a total expense of share-based payments of $367,030 (2019: $249,775) all of which arises from transactions accounted for as equity settled share-based payment transactions.
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
Page 34
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
8
Staff costs (continued)
2020
2019
No.
No.
Production
120
141
Administration and support
22
22
142
163
9
Directors' remuneration
The directors did not receive any remuneration or benefit for qualifying services in either the current year or the prior year.
Income tax
10
Tax charged/(credited) in the statement of comprehensive income
2020
2019
$
$
Current taxation
Corporation tax
303,117
549,485
Corporation tax adjustment to prior period
(542,610)
(112,668)
Foreign withholding tax
3,565,661
3,816,752
Current tax charge
4,253,569
3,326,168
Deferred taxation
Arising from origination and reversal of temporary differences
87,628
177,795
Arising from previously unrecognised tax loss
(46,225)
8,088
Deferred tax
41,403
185,883
Tax expense in the statement of comprehensive income
3,367,571
4,439,452
The tax on profit for the year is the same as the standard rate of corporation tax in the UK of 19% (2019 - the same as the standard rate of corporation tax in the UK of 19%).
Page 35
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
10
Income tax (continued)
The differences are reconciled below:
2020
2019
$
$
Profit before tax
20,237,723
13,739,710
Corporation tax at standard rate
3,845,167
2,610,545
Decrease in current tax from adjustment for prior periods
(542,610)
(112,668)
Decrease from effect of capital allowances depreciation
(3,377)
(17,013)
Decrease from effect of net income not taxable in determining taxable loss
(3,680,262)
(2,033,850)
Increase from effect of exercise employee share options
229,217
167,598
Increase from effect of foreign withholding tax
3,565,661
3,816,752
Deferred tax (credit)/expense from unrecognised temporary difference from a prior period
(46,225)
8,088
Total tax charge
3,367,571
4,439,452
Future tax changes
The directors are not aware of any factors that will materially affect the rate of corporation tax in the foreseeable future.
At Budget 2020, the government announced that the Corporation Tax rate for the years starting 1 April 2020 and
2021 would remain at 19%. At Budget 2021, the government announced that the Corporation Tax would increase to
25% from 1 April 2023. This rate had been enacted on 10 June 2021 when the Finance Bill 2021 received Royal
Assent.
Page 36
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
10
Income tax (continued)
Deferred tax
Deferred tax movement during the year:
At
At 1 October 2019
Recognised in income
30 September 2020
$
$
$
Accelerated tax depreciation
56,283
27,785
84,068
Share-based payment
117,528
(69,188)
48,340
Net tax assets
173,811
(41,403)
132,408
Deferred tax movement during the prior year:
At
At 1 October 2018
Recognised in income
30 September 2019
$
$
$
Accelerated tax depreciation
187,676
(131,393)
56,283
Share-based payment
172,018
(54,490)
117,528
Net tax assets
359,694
(185,883)
173,811
Page 37
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
11
Tangible assets
Leasehold improvements
Computer equipment
Office equipment
Total
$
$
$
$
Cost or valuation
At 1 October 2019
514,516
2,626,231
6,976,269
10,117,016
Additions
2,722
38,444
423,898
465,064
Disposals
-
-
(38,548)
(38,548)
At 30 September 2020
517,238
2,664,675
7,361,619
10,543,532
Depreciation
At 1 October 2019
483,706
2,086,337
4,338,723
6,908,766
Charge for the year
4,332
349,610
782,544
1,136,486
Eliminated on disposal
-
-
(38,548)
(38,548)
At 30 September 2020
488,038
2,435,947
5,082,719
8,006,704
Carrying amount
At 30 September 2020
29,200
228,728
2,278,900
2,536,828
At 30 September 2019
30,810
539,894
2,637,546
3,208,250
Page 38
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
12
Intangible assets
Acquired computer software
Customer relationships
Total
$
$
$
Cost or valuation
At 1 October 2019
7,053,524
507,568
7,561,092
Additions
-
5,458
5,458
At 30 September 2020
7,053,524
513,026
7,566,550
Amortisation
At 1 October 2019
7,053,524
459,149
7,512,673
Amortisation charge
-
22,992
22,992
At 30 September 2020
7,053,524
482,141
7,535,665
Carrying amount
At 30 September 2020
-
30,885
30,885
At 30 September 2019
-
48,419
48,419
13
Investments
2020
2019
Subsidiaries
$
$
Cost or valuation
At 1 October
271,828,900
206,451,828
Additions
30,000,000
65,377,072
At 30 September
301,828,900
271,828,900
Provision
At 1 October
-
-
Provision charge
-
-
At 30 September
-
-
Net book value
301,828,900
At 30 September
271,828,900
Page 39
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
13
Investments (continued)
Details of the principal investments held by the company at 30 September 2020 of which the company holds, directly or indirectly, at least 20% of the nominal value of any class of share capital are as follows:
Proportion of ownership interest and voting rights held
Country of incorporation and principal place of business
Holdings type
Name of subsidiary
(stock/shares)
Amdocs Inc.
USA
Common
100.00%++
Sypress Inc.
USA
Common
100.00%
Canadian Directory Technology Ltd
USA
Common
100.00%++
DirectoryTechnology (Pty) Ltd.
Australia
Ordinary
100.00%++
Amdocs (Brazil) Limitada
Brazil
Ordinary
100.00%
Amdocs (Italy) S.r.l.
Italy
Ordinary
100.00%
Amdocs Software GmbH
Germany
Ordinary
100.00%
Amdocs Japan Limited
Japan
Ordinary
100.00%
PT Application Solutions
Indonesia
Ordinary
100.00%++
Amdocs (France) SAS
France
Ordinary
100.00%++
Amdocs Software Technologies Inc.
USA
Common
50.00%++
Amdocs IT Services LLC
USA
Common
100.00%++
Amdocs BV
Netherlands
Ordinary
100.00%
Amdocs (CR) s.r.o.
Czech Republic
Ordinary
100.00%++
Amdocs Management Limited
UK
Ordinary
100.00%
Amdocs Portugal Software Unipersonal Lda
Portugal
Ordinary
100.00%++
Amdocs Systems LLC.
USA
Common/Preferred
100.00%++
Amdocs (Spain) SLU
Spain
Ordinary
100.00%++
Ignis UK Investment Limited
UK
Ordinary
100.00%
Amdocs (Hellas) Limited
Greece
Ordinary
100.00%++
Page 40
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
13
Investments (continued)
Proportion of ownership interest and voting rights held
Country of incorporation and principal place of business
Holdings type
Name of subsidiary
(stock/shares)
Amdocs BCS (UK) Limited
UK
Ordinary
100.00%++
Amdocs (USA) Inc.
USA
Common
100.00%++
Qpass Holdings Gmbh
Austria
Ordinary
100.00%++
Qpass US Holdings LLC
USA
Ordinary
100.00%++
Amdocs Qpass - Austria Gmbh
Austria
Ordinary
100.00%++
OpenMarket Inc.
USA
Common
100.00%++
Amdocs Botswana (Proprietary) Limited
Botswana
Ordinary
100.00%
Vindica Inc.
USA
Common
100.00%++
cVidya Networks Inc.
USA
Common
100.00%++
jNetX Software LLC
USA
Common
100.00%++
Pontis Inc. (liquidated on 06 December 2019)
USA
Common
100.00%++
Pontis Ltd.
Israel
Ordinary
100.00%++
Kenzan Media LLC
USA
Common
100.00%++
Actix K.K. (liquidated on 31 October 2018)
Japan
Ordinary
100.00%
Vubiquity Inc.
USA
Common
100.00%++
Vubiquity Group Limited
UK
Ordinary
100.00%++
Vubiquity Management Limited
UK
Ordinary
100.00%++
FilmFlex Movies Limited
UK
Ordinary
100.00%++
Telecom Technology Services, Inc.
USA
Common
100.00%++
++ held by a subsidiary undertaking
The subsidiary undertakings are engaged in providing business support systems and related services to the communication industry.
Page 41
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
13
Investments (continued)
On 24 September 2020, the company made a voluntary capital contribution of $30.00 million to its wholly owned subsidiary, Sypress, Inc,
During the year, the company received dividends from the following subsidiaries:
- Amdocs Software GmbH paid dividends on 27 February 2020 and 2 April 2020 amounting to $3.3 million (€3.00 million), $1.7 million (€1.56 million), respectively;
- Amdocs Italy S.r.l. paid dividends on 27 February 2020 amounting to $2.1 million (€1.88 million);
- Amdocs (CR) s.r.o. paid dividends on 27 February 2020 and 12 May 2020 amounting to $1.24 million and $0.20 million, respectively; and
- Amdocs (Brasil) Limitada paid dividends on 29 January 2020 and 27 July 2020 amounting to $5.9 million (BRL 25.00 million) and $4.1 million (BRL 21.00 million), respectively.
14
Other financial assets
30 September
30 September
2020
2019
$
$
Non-current financial assets
At 1 October
-
-
Additions
4,400,000
-
Fair value adjustment
(1,817,205)
-
Total unquoted equity investments
2,582,795
-
On 24 February 2020, the company purchased a minority interest from OpenMarket Limited in New Vector Limited for a consideration of $4.4 million.
The decrease in equity investments during the year is due to an decrease in the fair value attributable to a minority equity investment held by the company.
15
Trade and other debtors
30 September
30 September
2020
2019
$
$
Trade debtors
7,247,030
10,163,320
Amounts owed by group undertakings
29,873,763
42,820,112
Accrued income
3,909,599
10,981,576
Prepayments
736,304
712,471
Other debtors
28,821
132,052
Income tax asset
1,355,362
447,750
43,150,879
65,257,281
Page 42
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
15
Trade and other debtors (continued)
Amounts owed by group undertakings are unsecured, bear interest at commercial rates and are repayable in full within one year of granting.
16
Creditors due within one year
30 September
30 September
2020
2019
$
$
Trade creditors
448,829
353,292
Accrued expenses
4,191,119
4,811,392
Amounts owed to group undertakings
6,691,230
10,689,463
Social security and other taxes
1,214,246
746,649
Other creditors
711,342
148,467
Deferred income
2,130,438
5,417,621
Lease liability (note 19)
669,784
-
16,056,988
22,166,884
Amounts owed to group undertakings are unsecured, bear interest at commercial rates and are repayable in full within one year of granting.
17
Creditors due after more than one year
30 September
30 September
2020
2019
$
$
Lease liability (see note 19)
2,461,476
-
Non-current accrued expenses
-
256,759
2,461,476
256,759
18
Other provisions
National Insurance
Total
$
$
At 1 October 2019
106,776
106,776
Decrease in existing provisions
(52,238)
(52,238)
At 30 September 2020
54,538
54,538
Page 43
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
19
Leases
The company leases buildings for its office space. The leases of office space run for a period of 1 to 5 years, with some agreements including an option to renew after the end of the contractual term. For leases of office space with lease terms of 12 months or less, the company applies the 'short-term lease' recognition exemptions for these agreements.
Set out below are the carrying amounts of right-of-use assets recognised and the movements during the year:
30 September
2020
$
Cost
At 1 October 2019
1,242,112
Additions
2,654,479
At 30 September 2020
3,896,591
Depreciation and impairment
At 1 October 2019
-
Depreciation charge for the year
(838,226)
At 30 September 2020
(838,226)
Net book value
At 1 October 2019
1,242,112
At 30 September 2020
3,058,365
Leases included in creditors
30 September
2020
$
At 1 October
1,681,326
Additions
2,654,479
Accretion of interest
24,724
Payments
(1,296,566)
Foreign exchange
67,297
At 30 September
3,131,260
Page 44
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
19
Leases (continued)
30 September
2020
$
Current
669,784
Non-current
2,461,476
At 30 September
3,131,260
Lease liabilities maturity analysis
The contractual undiscounted cash flow related to the lease payments is as follows:
30 September
30 September
2020
2019
$
$
Within one year
667,989
1,008,764
In two to five years
2,531,001
626,699
3,198,990
1,635,463
Amount recognised in statement of comprehensive income
30 September
2020
$
Interest on lease liabilities
24,724
Depreciation expense of right-of-use assets
838,226
Total amount recognised in profit or loss
862,950
Total cash outflows related to leases
Total cash outflows related to leases are presented in the table below:
30 September
2020
Payment
$
Right-of-use assets
1,296,566
Page 45
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
20
Pension and other schemes
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to $908,379 (2019 - $1,030,688).
Contributions totalling $Nil (2019 - $Nil) were payable to the scheme at the end of the year and are included in creditors (Note 16).
21
Share-based payments
Amdocs (UK) Limited, as a member of the Amdocs group of companies, has adopted the Amdocs Stock Option and Incentive Plan (the "Plan"), which provides for the grant of restricted stock awards and stock options to employees, officers, directors and consultants. The purpose of the Plan is to enable the company to attract and retain qualified personnel and to motivate such persons by providing them with equity participation in the company. Awards granted under the Plan generally vest over a period of four years and stock options have a term of ten years.
Amdocs (UK) Limited, has availed of the exemptions under FRS 101.6-8 from the requirements of paragraphs 45(b) and 46-52 of IFRS 2 share based payments as the equivalent disclosures are included in the consolidated financial statements of the group in which the entity is consolidated.
22
Share capital
Allotted, called up and fully paid shares
30 September
30 September
2020
2019
No.
$
No.
$
Ordinary shares of £1 each
7,874,016
15,333,171
7,874,016
15,333,171
23
Other reserves
On 16 August 2019, the company received a capital contribution of $53,000,000 from the company's parent, this is an unconditional, irrevocable contribution of funds. No consideration was granted in respect of these funds and no party acquired rights of any nature against the company in respect of the funds advanced or otherwise.
Page 46
Amdocs (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
24
Related party transactions
In common with other companies which are members of a group of companies, the financial statements reflect the effect of such membership. The company has availed of the exemption provided in Financial Reporting Standard 101, Reduced Disclosure Framework, for wholly owned subsidiary undertakings within the group, from the requirement to give details of transactions with entities that are part of the group.
25
Parent and ultimate parent undertaking
The company's immediate parent is Opis Investment Switzerland GmbH.
The ultimate parent is Amdocs Limited. The financial statements for Amdocs Limited are available from the company's website: www.amdocs.com.
26
Events after the reporting date
There were no significant events after the reporting date that require disclosure.
27
Board approval
These financial statements were authorised for issue by the Board on 30 September 2021.
Page 47
false
CCH Software
iXBRL Review & Tag 2020.2
2020-09-30
2019-10-01
03085506
2019-10-01
2020-09-30
03085506
2020-09-30
03085506
2018-10-01
2019-09-30
03085506
2019-09-30
03085506
core:OtherReservesSubtotal
2020-09-30
03085506
core:OtherReservesSubtotal
2019-09-30
03085506
core:RetainedEarningsAccumulatedLosses
2019-09-30
03085506
core:RetainedEarningsAccumulatedLosses
2018-09-30
03085506
core:ForeignCurrencyTranslationReserve
2020-09-30
03085506
core:ForeignCurrencyTranslationReserve
2019-09-30
03085506
core:ShareCapitalOrdinaryShares
2020-09-30
03085506
core:ShareCapitalOrdinaryShares
2019-09-30
03085506
bus:FRS101
2019-10-01
2020-09-30
03085506
core:CustomerRelationships
2019-09-30
03085506
core:WithinOneYear
2020-09-30
03085506
core:WithinOneYear
2019-09-30
03085506
bus:PrivateLimitedCompanyLtd
2019-10-01
2020-09-30
03085506
bus:Audited
2019-10-01
2020-09-30
03085506
bus:FullAccounts
2019-10-01
2020-09-30
xbrli:pure
xbrli:shares
iso4217:USD