NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
1.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
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The prior period was shorter than twelve months and therefore the comparatives are not entirely comparable.
The following principal accounting policies have been applied:
The Company is in a net asset position of £55,357, which is supported by a positive cash position. The Company operates on a transfer pricing arrangement with its parent company Helpshift Inc., who pay intercompany sales invoices when received and provide additional cash funding as required to support the normal operations of the Company. As a result, the Company is reliant on the continued support of the parent company to finance its operations.
Helpshift UK Limited has received written confirmation from Helpshift, Inc., that it will continue to provide financial support to the Company for a period of 12 months from the date of signing these financial statements. Furthermore, the director has assessed the ability of Helpshift, Inc. to provide this support based upon the forecasts provided and have concluded that the parent will have sufficient working capital to provide the necessary support. For this reason, the director continues to adopt the going concern basis in preparing these financial statements.
Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Rendering of services
Turnover is recognised on a cost plus 5% basis, in line with the intercompany service agreement with the parent company. Intercompany turnover is recognised when all of the following conditions are satisfied:
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the amount of turnover can be measured reliably;
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it is probable that the Company will receive the consideration due under the intercompany service agreement;
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the costs incurred under the intercompany service agreement can be measured reliably.
Short term debtors are measured at transaction price. Loans receivable are intercompany loans measured at cost. No interest is charged on the loans, which are repayable on demand.
Other income consists of intercompany recharges in respect of staff salaries and expenses to a company under common control.
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