Company Registration No. SC234318 (Scotland)
INTELLIGENCE NETWORKING LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
PAGES FOR FILING WITH REGISTRAR
INTELLIGENCE NETWORKING LIMITED
COMPANY INFORMATION
Director
Mr N Ritchie
Secretary
Mr N Ritchie
Company number
SC234318
Registered office
The Pentagon Building
36 Washington Street
Glasgow
G3 8AZ
Accountants
French Duncan LLP
133 Finnieston Street
Glasgow
G3 8HB
INTELLIGENCE NETWORKING LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
INTELLIGENCE NETWORKING LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2016
31 December 2016
- 1 -
2016
2015
Notes
£
£
£
£
Fixed assets
Intangible assets
378,000
441,000
Tangible assets
4
10,621
5,206
Current assets
Debtors
1,530,336
1,498,214
Cash at bank and in hand
1,158
436
1,531,494
1,498,650
Creditors: amounts falling due within one year
(1,025,788)
(845,646)
Net current assets
505,706
653,004
Total assets less current liabilities
894,327
1,099,210
Creditors: amounts falling due after more than one year
(250,000)
(375,000)
Provisions for liabilities
(64,346)
(63,802)
Net assets
579,981
660,408
Capital and reserves
Called up share capital
6
1
1
Profit and loss reserves
579,980
660,407
Total equity
579,981
660,408
In accordance with section 444 of the Companies Act 2006 all
of
the members of the company have consented to the
preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (S.I. 2008/409)(b).
The director of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
INTELLIGENCE NETWORKING LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2016
31 December 2016
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 29 September 2017
Mr N Ritchie
Director
Company Registration No. SC234318
INTELLIGENCE NETWORKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
- 3 -
1
Accounting policies
Company information
Intelligence Networking Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
The Pentagon Building, 36 Washington Street, Glasgow, G3 8AZ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
These financial statements for the year ended 31 December 2016
are the
first
financial statements of Intelligence Networking Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 January 2015. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 8.
1.2
Turnover
The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date if the fair value can be measured reliably.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Intangible Assets
10% straight line
INTELLIGENCE NETWORKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 4 -
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures & fittings
33% straight line
Computer equipment
33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. 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 for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
INTELLIGENCE NETWORKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 5 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
INTELLIGENCE NETWORKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 6 -
Deferred tax
Deferred tax
is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, except that the recognition of deferred tax assets is limited to the extent that the company anticipates making sufficient taxable profits in the future to absorb the reversal of the underlying timing differences.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charges to the profit and loss account.
1.12
Leases
Rentals
applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charges against profits on a straight line basis over the period of the lease.
1.13
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 50 (2015 - 50).
INTELLIGENCE NETWORKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 7 -
3
Intangible fixed assets
Total
£
Cost
At 1 January 2016 and 31 December 2016
630,000
Amortisation and impairment
At 1 January 2016
189,000
Amortisation charged for the year
63,000
At 31 December 2016
252,000
Carrying amount
At 31 December 2016
378,000
At 31 December 2015
441,000
4
Tangible fixed assets
Total
£
Cost
At 1 January 2016
229,359
Additions
9,810
At 31 December 2016
239,169
Depreciation and impairment
At 1 January 2016
224,153
Depreciation charged in the year
4,395
At 31 December 2016
228,548
Carrying amount
At 31 December 2016
10,621
At 31 December 2015
5,206
5
Deferred income
2016
2015
£
£
Other deferred income
304,943
-
INTELLIGENCE NETWORKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 8 -
6
Called up share capital
2016
2015
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary share of £1 each
1
1
7
Parent company
The parent company of Intelligence Networking Limited is Mirn Limited and its registered office address is The Pentagon, 36 Washington Street, Glasgow, G3 8AZ.
INTELLIGENCE NETWORKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 9 -
8
Reconciliations on adoption of FRS 102
Reconciliation of equity
At 1 January 2015
At 31 December 2015
Previous UK GAAP
Effect of
transition
FRS 102
Previous UK GAAP
Effect of
transition
FRS 102
Notes
£
£
£
£
£
£
Fixed assets
Other intangibles
504,000
-
504,000
441,000
-
441,000
Tangible assets
10,752
-
10,752
5,206
-
5,206
514,752
-
514,752
446,206
-
446,206
Current assets
Debtors
1,040,262
-
1,040,262
1,498,214
-
1,498,214
Bank and cash
671
-
671
436
-
436
1,040,933
-
1,040,933
1,498,650
-
1,498,650
Creditors due within one year
Loans and overdrafts
(524,957)
-
(524,957)
(459,104)
-
(459,104)
Taxation
(298,918)
-
(298,918)
(276,731)
-
(276,731)
Other creditors
(91,218)
-
(91,218)
(109,811)
-
(109,811)
(915,093)
-
(915,093)
(845,646)
-
(845,646)
Net current assets
125,840
-
125,840
653,004
-
653,004
Total assets less current liabilities
640,592
-
640,592
1,099,210
-
1,099,210
Creditors due after one year
Loans and overdrafts
-
-
-
(375,000)
-
(375,000)
Provisions for liabilities
Deferred tax
-
(63,802)
(63,802)
-
(63,802)
(63,802)
Net assets
640,592
(63,802)
576,790
724,210
(63,802)
660,408
Capital and reserves
Share capital
1
-
1
1
-
1
Revaluation reserve
506,365
(506,365)
-
354,456
(354,456)
-
Profit and loss
134,226
442,563
576,789
369,753
290,654
660,407
Total equity
640,592
(63,802)
576,790
724,210
(63,802)
660,408
INTELLIGENCE NETWORKING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
8
Reconciliations on adoption of FRS 102
(Continued)
- 10 -
Reconciliation of profit for the financial period
Year ended 31 December 2015
Previous UK GAAP
Effect of
transition
FRS 102
Notes
£
£
£
Turnover
2,315,875
-
2,315,875
Administrative expenses
(2,164,058)
-
(2,164,058)
Interest payable and similar expenses
(32,774)
-
(32,774)
Taxation
(35,425)
-
(35,425)
Profit for the financial period
83,618
-
83,618
Notes to reconciliations on adoption of FRS 102
Revaluation reserve
The revaluation of intangible assets was allocated to revaluation reserve under UK GAAP. In accordance with FRS 102, the revaluation amount is now adjusted through the profit and loss account.
Deferred taxation has been accounted for on the revaluation reserve at 18%.
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