KETECH DEFENCE LIMITED
Notes to the Financial Statements
For the Year Ended 31 August 2021
1.
Accounting policies
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Basis of preparation of financial statements
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KeTech Defence Limited is a private company limited by shares incorporated in England within the United Kingdom. The address of the registered office is given in the company information page of these financial statements. The company’s registration number is 05064339.
The financial statements have been prepared on a going concern basis under the historical cost convention and in accordance with Financial Reporting Standard 102 Section 1A small entities, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.
The financial statements are presented in Sterling which is the functional currency of the company.
The significant accounting policies applied in the preperation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
These financial statements have been prepared on a going concern basis, which assumes that the company will continue to trade. The validity of this assumption is dependent on the continued support from all of the group companies. If the company were unable to trade, adjustments would have to be made to reduce the values of assets to their recoverable amount, to provide further liabilities that might arise and reclassify fixed assets as current assets.
The directors note that events surrounding the Covid-19 pandemic have introduced additional risks for many companies. The directors remain confident that the company is well placed to mitigate any additional risks arising and that Covid-19 will not adversely affect the ongoing viability of the company.
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:
Sale of goods
Turnover from the sale of goods and services is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually upon goods or service delivery.
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Foreign currency translation
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Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.
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