Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2019
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FINOTEC TRADING UK LIMITED
COMPANY INFORMATION
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FINOTEC TRADING UK LIMITED
CONTENTS
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FINOTEC TRADING UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
The directors present their strategic report for the year ended 31 December 2019.
Finotec (“FTUK”) is a long established FCA regulated financial service intermediary and Investment management firm [FCA Register Number 470392], specializing in OTC and exchange based trading venues. Finotec is licensed to hold client funds, act as a match principal agency and as an investment management for professional clients. Since 2007, FTUK has helped brokers succeed by providing everything they need to operate a flourishing FX broker business as well as providing easy access for professional traders to a regulated trading environment. In 2008, we took an important strategic decision to move to a Match Principal business model, ensuring that our interests would always align with those of our clients’. This decision was based on the realization that our own earning potential shared strong correlation to our clients’ life time value, and in order to encourage a strong sentiment of success from our clients, FTUK would match clients’ orders with the market so as to eliminate any possible conflict of interest. FTUK offers a winning combination of services that include: Fair Liquidity, Risk Management, Regulatory Compliance and Managed Investment programs. In more recent years, FTUK has been transitioning its services to leverage on its Asset Management License, allowing for the management of client money traded either at FTUK or elsewhere. “Our aim is to turn the focus of the company from a purely brokerage institute to offer investment services as well. Yedidya Capital Markets Limited (“YCM”), an Israeli research company with a long standing history developing technologies and risk management systems for the FX Industry, developed an exclusive trading algorithm and, in 2015, signed a distribution agreement with FTUK to offer this unique trading program to FTUK’s clients; as well as to introduce YCM’s client portfolio to FTUK’s brokerage services.
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FINOTEC TRADING UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
BUSINESS REVIEW In today’s dynamic digital world, information itself is not enough, but the speed and efficiency in which information can be collected, analysed and repurposed is what separates failure from success. Most investors do not have the necessary experience or patience to be selective in the trades they choose to enter. The risk of such inexperience is inevitably a high loss to win ratio and is generally not supportive of our core values, which are to promote a strong sentiment of success from our clients. Using a systematic managed trading account provides better protection against the “emotional element” of trading by ensuring that “trades” are executed through a strict protocol of risk management rules; and in doing so a more stable and sustaining trading strategy can be achieved. Traditional managed investments focus on predicting future price trends. Our investment methodology, however, is very different. We have invested in a deeper understanding of our extensive network of traders and using this insight to form the bedrock of our proprietary ranking system. We analyse the behavioural patterns of tens of thousands of retail traders in order to extract statistical data supporting either “bad” or “good” trade decisions. These behavioural statistics are used in our algorithms as a means of quantifying the chance of a trader continuing to be successful, as well as to assess whether traders are showing signs of deviating from a previously established trend. • The Dynamic Allocation System is a powerful tool that controls risk and maximize profit by analysing and monitoring extensive datasets • The system monitors the performance of over 100,000 traders, whilst recording over 700,000 trades to acquire a deep understanding of trading patterns, strategies and risk management • The system identifies market patterns by analysing market structure and activity through a set of proprietary quantitative algorithms • A professional team of quants are continuously monitoring the algorithms so that our clients’ money is managed in the best risk/reward framework • The model is based on machine learning and provides the foundations for the trading programs we offer Our managed accounts are designed for professional and institutional investors looking for a unique edge in trading the open markets. Investors can select the level of risk appropriate for their own investment objectives. Unlike traditional hedge fund investments, our structure offers full liquidity of the funds invested with no lockup periods, full back office support and order transparency and, most importantly, peace of mind that comes from investing within our regulated environment.
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FINOTEC TRADING UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
The main prudential risks faced by the firm in its business are:
Credit and Counterparty Risk Because FTUK offers access to the market on a margin basis, there is a risk that our client may incur losses in excess of their initial deposits with us. We believe that we have effectively mitigated this risk through the implementation of a conservative margining process. We have only once experienced a client debt, which came as the result of the decoupling of the Swiss Franc. Conversely, we have credit and counterparty exposures on the market facing side of our business, however, as a Matched Principal broker, and by carefully selecting our market side counterparties, we can reduce this risk exposure and have had to date, no bad debts. Market Risk We do not run a proprietary trading book. However, we do have treasury balances in foreign currencies as a result of operational needs or the accrual of revenue in other currencies. We have traditionally accepted this as a cost of running our business rather than seeing it as a risk. Liquidity Risk A more pressing risk than credit risk is liquidity risk. In the event that a client were to lose more than they had deposited with us as margin, the exposure would be subject to only an 8% capital requirement under Pillar one until such time as it was collected. However, we would need to pay those losses to our market side broker immediately. We would therefore need 100% liquidity cover for any losses immediately - even if the debt were to be collected within hours. We have a two-fold approach to liquidity risk. First, our margining process, although designed primarily to address credit risk, seeks to prevent any potential debts in the first place. Second, we monitor our gross positions with our market side brokers on a daily basis alongside our available liquidity. We seek to ensure that our free liquidity is more than 20% of our largest gross currency position. We will adjust our margin requirements for relevant currency pairs if necessary to achieve this. We are satisfied that this combination of tools has effectively mitigated our exposure to liquidity risk. CLIENT FUND PROTECTION Investors benefit from additional securities that are uniquely offered by Finotec with FSCS Deposit Protection Insurance by Lloyds on client funds of GBP 500,000 per account (additional protection is available if required). GOING CONCERN The directors have reviewed their projections and forecasts and consider that they have adequate resources to continue to meet FCA capital adequacy requirements and future working capital.
During 2019, FTUK’s turnover income was $1.5 million whilst clearing approx. 16 billion of client transactions. This represents a 66% increase $ per million of traded volume as compared to 2018.
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FINOTEC TRADING UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
FTUK continues to attract interest in its growing portfolio of higher tier products and services and simultaneously seen adoption to its Asset Management program.
2018/19 was a challenging period due to market wide indecision as the political tug-of-war revolving around a “Brexit Agreement” played out. Despite this, our Managed Investment program has been performed well with an average annual return of 36% over 5 years. Throughout 2019, new layers of risk management have been implemented, specifically centred around the low volatility observed during this period. The aim is to counter the impact of low market volatility within the algorithm’s decision based self-learning engine. The minimum entry is currently set to $100,000, with clients paying an Execution fee of $15 per million. The immediate consideration for FTUK is a monthly transaction volume of more than $US1 billion for each $US1 Million AUM, which would generate an additional income of up to $15,000 (including price improvements) per month. Our current target is to reaching $US20 million in total deposits by the end of 2020 which we believe will enhance FTUK’s income potential. FTUK’s management is also exploring a corporate transaction with YCM for the purpose of integrating the revenues generated from Management and Performances fees with FTUK.
FCA PILLAR 3 DISCLOSURE
The FCA Pillar 3 unaudited disclosures are published and updated annually on the company's website at www.finotec.com. Statement in compliance with section 172(1) of the Companies Act 2006 The Director of the Company is acutely aware of the requirement for them to act in the way 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. In considering this duty the Director considers the following stakeholders: Shareholders The Director has regular contact with the shareholder in order to maximise the Company's long-term growth prospects and the opportunity for a dividend stream. Customers The Company's customer base ranges from large institutional clients to professional clients. The Director priorities compliance with the FCA Client Money rules to ensure the funds of relevant clients are protected, whilst ensuring each client's best interests are served in accordance with their risk appetite. Suppliers The company has various key supplier/vendor relationships which work more as a partnership to ensure the smooth running of the business as well as various streams of support where necessary. Community and the environment The Company actively seeks to reduce its carbon footprint by virtue of its entirely online and paperless business. The Director also encourages regular attendance at industry related networking events in order to build and maintain strong relationships within the forex community.
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FINOTEC TRADING UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
Enter text here - user input
This report was approved by the board
and signed on its behalf.
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FINOTEC TRADING UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
The directors present their report and the financial statements for the year ended 31 December 2019.
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;
∙
make judgments and accounting estimates that are reasonable and prudent;
∙
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙
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 to 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.
The profit for the year, after taxation, amounted to £
59,774
(2018 -
£
69,663
)
.
The directors recommend that no dividend is paid.
The directors who served during the year were:
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FINOTEC TRADING UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
The future developments of the business are disclosed in the Strategic Report.
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Each of the persons who are
directors at the time when this Directors' Report is approved has confirmed that:
There have been no significant events affecting the Company since the year end.
Under section 487(2) of the Companies Act 2006, Berg Kaprow Lewis LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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FINOTEC TRADING UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FINOTEC TRADING UK LIMITED
We have audited the financial statements of Finotec Trading UK Limited (the 'Company') for the year ended 31 December 2019, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows
and the related notes, 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 Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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.
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. 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
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FINOTEC TRADING UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FINOTEC TRADING UK LIMITED (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the 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 or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
As explained more fully in the Directors' Responsibilities Statement on page 6, 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.
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FINOTEC TRADING UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FINOTEC TRADING UK LIMITED (CONTINUED)
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 Auditors' 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 Auditors' Report.
This report is made solely to the Company's members
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 Auditors' 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 for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
London
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FINOTEC TRADING UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2019
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FINOTEC TRADING UK LIMITED
REGISTERED NUMBER:
06039502
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2019
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 14 to 27 form part of these financial statements.
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FINOTEC TRADING UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
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FINOTEC TRADING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
The principal activity of Finotec Trading UK Limited ('the company') is that of brokerage in foreign exchange (“FX”) and contracts for differences (“CFDs”) mainly for professional clients.
The company is a private limited company incorporated in England and Wales. The principal place of business is; Mappin House, Oxford Circus, London, W1W 8HF.
2.
ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland ("FRS 102"), and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3). The following principal accounting policies have been applied: The company made a profit of £59,774 during the year, reporting net current liabilities of £412,968 and an overall net asset position of £535,169. The Company, as for any business, relies upon the generation of profits and cash to create working capital to meet its liabilities as they fall due. Based on the results to date and future projections, the directors are confident that the Company will continue to meet its liabilities as they fall due, looking forward at least twelve months from the date of signing these financial statements. The directors have a reasonable expectation that the company has adequate resources to meet Financial Conduct Authority capital adequacy and future working capital requirements and to continue in operational existence for the foreseeable future and they consider it appropriate to prepare the financial statements on a going concern basis. As a result, the directors have prepared the financial statements on a going concern basis. Although the Covid-19 pandemic has resulted in an uncertain environment, the directors have a reasonable expectation, based on their assessment of the Company's financial position and resources, that it will continue in operational existence for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements, and will be able to meet its debts as they fall due. The directors therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.
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FINOTEC TRADING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
ACCOUNTING POLICIES (CONTINUED)
Turnover represents spread and commission income earned on brokerage services provided. It includes profits and losses on rolling spot foreign exchange trading and CFDs (contracts for difference).
Turnover is recognised when the trades are executed.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
Cryptocurrencies are initially recognised at cost. After recognition, under the revaluation model, cryptocurrency assets shall be carried at a revalued amount, being the fair value at the date of revaluation, by reference to an active market, less any subsequent accumulated amortisation and subsequent impairment losses. The revaluation deficit is included in turnover.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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FINOTEC TRADING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
ACCOUNTING POLICIES (CONTINUED)
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
Cash equivalents represent balances held with the company's liquidity providers on a mark-to-market basis.
The Company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, and loans to related parties.
(i) Financial assets Basic financial assets, including trade and other debtors, and amounts due from related companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Income and Retained Earnings. Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. (ii) Financial liabilities Basic financial liabilities, including trade and other creditors and accruals, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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FINOTEC TRADING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
ACCOUNTING POLICIES (CONTINUED)
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Functional and presentation currency
The company's functional and presentational currency is Sterling. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end, foreign currency monetary items are translated using the closing rate at the year end. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Rentals paid under operating leases are charged to the Statement of Income and Retained Earnings on a straight line basis over the lease term.
DEFINED CONTRIBUTION PENSION PLAN
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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FINOTEC TRADING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
ACCOUNTING POLICIES (CONTINUED)
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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FINOTEC TRADING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
The preparation of the financial statements requires 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 year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial
statements: (i) Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. (ii) Useful economic lives of intangible assets The annual amortisation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments and economic utilisation. (iii) Deferred tax The annual deferred tax charge is sensitive to changes in the estimated future profits that will be offset against tax losses. The deferred tax charge is re-assessed annually. They are amended when necessary to reflect current estimates and future projections.
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FINOTEC TRADING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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FINOTEC TRADING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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FINOTEC TRADING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
9.
TAXATION (CONTINUED)
The company has trading losses of approximately £3,537,000 (2018 - £3,660,000) that can be offset against future taxable profits. A deferred tax asset has not been recognised due to the uncertainty of future profits. The amount not provided for is approximately £672,000 (2018 - £622,000).
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FINOTEC TRADING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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FINOTEC TRADING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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FINOTEC TRADING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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FINOTEC TRADING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Profit and loss account
A prior year adjustment was made to reclassify a Bitcoin balance of £26,199 from cash to intangibles. This has reduced the prior year cash balance to £3,449,369 from £3,476,099 and increased the prior year intangibles figure from £529,113 to £555,232. Profit for the prior year and retained earnings have not been affected as a result of this presentational prior year adjustment.
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FINOTEC TRADING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
The ultimate parent undertaking is Yedidya Capital Markets Limited, a company incorporated in Israel, whose principal place of business is Rehov Kanfei Nesherim 68/108, 9546457 Jerusalem, Israel.
The ultimate controlling party is D Essemini.
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