REGISTERED NUMBER: |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
FOR |
ABACA SYSTEMS LIMITED |
REGISTERED NUMBER: |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
FOR |
ABACA SYSTEMS LIMITED |
ABACA SYSTEMS LIMITED (REGISTERED NUMBER: 02551115) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
Page |
Company information | 1 |
Chartered accountants' report | 2 |
Balance sheet | 3 |
Notes to the financial statements | 5 |
ABACA SYSTEMS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Accountants: |
Chartered Accountants |
Hoghton Chambers |
Hoghton Street |
Southport |
PR9 0TB |
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS |
ON THE UNAUDITED FINANCIAL STATEMENTS OF |
ABACA SYSTEMS LIMITED |
The following reproduces the text of the report prepared for the directors and members in respect of |
the Company's annual unaudited financial statements. In accordance with the Companies Act 2006, |
the Company is only required to file a Balance sheet. Readers are cautioned that the Income |
statement and certain other primary statements and the Directors' report are not required to be filed |
with the Registrar of Companies. |
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval |
the financial statements of Abaca Systems Limited for the year ended 31 December 2016 which comprise the |
Profit and loss account, Balance sheet and the related notes from the Company's accounting records and |
from information and explanations you have given us. |
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance. |
This report is made solely to the Board of Directors of Abaca Systems Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Abaca Systems Limited and state those matters that we have agreed to state to the Board of Directors of Abaca Systems Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Abaca Systems Limited Board of Directors, as a body, for our work or for this report. |
It is your duty to ensure that Abaca Systems Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Abaca Systems Limited. You consider that Abaca Systems Limited is exempt from the statutory audit requirement for the year. |
We have not been instructed to carry out an audit or a review of the financial statements of Abaca Systems Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. |
Chartered Accountants |
Hoghton Chambers |
Hoghton Street |
Southport |
PR9 0TB |
ABACA SYSTEMS LIMITED (REGISTERED NUMBER: 02551115) |
BALANCE SHEET |
31 DECEMBER 2016 |
2016 | 2015 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 4 |
Current assets |
Debtors | 5 |
Investments | 6 |
Cash at bank |
Creditors |
Amounts falling due within one year | 7 |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
8 |
( |
) |
( |
) |
Provisions for liabilities | ( |
) | ( |
) |
Accruals and deferred income | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital |
Retained earnings |
Shareholders' funds |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the Company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the Company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the Company. |
ABACA SYSTEMS LIMITED (REGISTERED NUMBER: 02551115) |
BALANCE SHEET - continued |
31 DECEMBER 2016 |
In accordance with Section 444 of the Companies Act 2006, the Profit and loss account has not been delivered. |
The financial statements were approved by the Board of Directors on its behalf by: |
ABACA SYSTEMS LIMITED (REGISTERED NUMBER: 02551115) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
1. | Statutory information |
Abaca Systems Limited is a private Company, limited by shares, registered in England and Wales.The |
Company's registered number and registered office address can be found on the Company information |
page. |
2. | Accounting policies |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting |
Standard applicable in the UK and Republic of Ireland" ("FRS102") 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 FRS102 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 amounts in these financial statements are rounded to the nearest £. |
The financial statements have been prepared under the historical cost convention. 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 the Company 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. The reported |
financial position and financial performance for the previous year are not affected by the transition to |
FRS 102. |
Turnover |
Turnover is recognised at the fair value of the consideration received or receivable for goods and |
services provided in the normal course of business, and is shown net of VAT. The fair value of |
consideration takes into account trade discounts and settlement discounts. |
Revenue is recognised when the significant risks and rewards and the amount of revenue can be |
measured reliably and, 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. |
ABACA SYSTEMS LIMITED (REGISTERED NUMBER: 02551115) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
2. | Accounting policies - continued |
Tangible fixed assets |
Land and buildings | - |
Plant and machinery | - |
Solar photovoltaic panels | - |
Motor vehicles | - |
Tangible fixed assets are initially measured at cost and subsequently measured at cost net of |
depreciation and any impairment losses. |
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. |
Impairment of fixed assets |
At each reporting period end date, the Company reviews the carrying amounts of its tangible 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. |
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. |
ABACA SYSTEMS LIMITED (REGISTERED NUMBER: 02551115) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
2. | Accounting policies - continued |
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. |
Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, |
associates or joint ventures, are initially measured at fair value, which is normally the transaction price. |
Such assets are subsequently carried at fair value and the changes in fair value are recognised in |
profit or loss, except that investments in equity instruments that are not publicly traded and whose fair |
values cannot be measured reliably are measured at cost less impairment. |
Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators |
of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events |
that occurred after the initial recognition of the financial asset, the estimated future cash flows have |
been affected. 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 profit or loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was |
recognised, the impairment is reversed. The reversal is such that the current carrying amount does not |
exceed what the carrying amount would have been, had the impairment not previously been |
recognised. The impairment reversal is recognised in profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset |
expire or are settled, or when the Company transfers the financial asset and substantially all the risks |
and rewards of ownership to another entity, or if some significant risks and rewards of ownership are |
retained but control of the asset has transferred to another party that is able to sell the asset in its |
entirety to an unrelated third party. |
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. |
ABACA SYSTEMS LIMITED (REGISTERED NUMBER: 02551115) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
2. | Accounting policies - continued |
Basic financial liabilities |
Basic financial liabilities, including creditors, 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 receipts 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. Amounts 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. |
Other financial liabilities |
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently |
measured at fair value through profit or loss. Debt instruments may be designated as being measured |
at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments |
are measured and their performance evaluated on a fair value basis in accordance with a documented |
risk management or investment strategy. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company’s contractual obligations expire or are |
discharged or cancelled. |
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. |
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. |
Deferred tax |
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are |
recognised to the extent that it is probable that they will be recovered against the reversal of deferred |
tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing |
difference arises from goodwill or from the initial recognition of other assets and liabilities in a |
transaction that effect neither the tax profit nor the accounting profit. |
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the |
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of |
the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the |
period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the |
profit and loss account, except when it relates to items charged or credited directly to equity, in which |
case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the |
company has a legally enforceable right to offset current tax assets and liabilities and deferred tax and |
liabilities levied by the same tax authority. |
ABACA SYSTEMS LIMITED (REGISTERED NUMBER: 02551115) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
2. | Accounting policies - continued |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at |
the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of |
exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at |
the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. |
Those held under hire purchase contracts are depreciated over their estimated useful lives. Those |
held under finance leases are depreciated over their estimated useful lives or the lease term, |
whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The |
capital element of the future payments is treated as a liability. |
Amounts payable under operating leases are charged to the profit and loss account on a straight line |
basis over the period of the lease. |
Amounts due from lessees are included in debtors. The associated income is apportioned between |
interest, which is credited to the profit and loss account and repayment of capital, which reduces the |
amount due from the lessee. |
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. |
Retirement benefits |
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall |
due. |
3. | Employees and directors |
The average number of employees during the year was |
ABACA SYSTEMS LIMITED (REGISTERED NUMBER: 02551115) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
4. | Tangible fixed assets |
Solar |
Land and | Plant and | photovoltaic | Motor |
buildings | machinery | panels | vehicles | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 January 2016 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2016 |
Depreciation |
At 1 January 2016 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2016 |
Net book value |
At 31 December 2016 |
At 31 December 2015 |
Included in cost of land and buildings is freehold land of £ 186,673 (2015 - £ 186,673 ) which is not |
depreciated. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
Cost |
At 1 January 2016 |
Disposals | ( |
) |
At 31 December 2016 |
Depreciation |
At 1 January 2016 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 December 2016 |
Net book value |
At 31 December 2016 |
At 31 December 2015 |
ABACA SYSTEMS LIMITED (REGISTERED NUMBER: 02551115) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
5. | Debtors |
2016 | 2015 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts receivable in respect of hire purchase contracts |
Prepayments |
Amounts falling due after more than one year: |
Amounts receivable in respect of hire purchase contracts |
116,017 |
88,650 |
Aggregate amounts |
6. | Current asset investments |
2016 | 2015 |
£ | £ |
Listed investments |
Peer to peer lending |
7. | Creditors: amounts falling due within one year |
2016 | 2015 |
£ | £ |
Bank loans and overdrafts |
Hire purchase contracts |
Trade creditors |
Corporation tax |
Social security and other taxes |
Directors' loan accounts |
8. | Creditors: amounts falling due after more than one year |
2016 | 2015 |
£ | £ |
Bank loan due in years 2 to 5 |
Bank loan due in 5 years + |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loan due in 5 years + | 81,722 | 100,867 |
ABACA SYSTEMS LIMITED (REGISTERED NUMBER: 02551115) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
9. | Secured debts |
The following secured debts are included within creditors: |
2016 | 2015 |
£ | £ |
Bank loans |
Hire purchase contracts | - | 64,089 |
Bank borrowings are secured by a fixed and floating charge on the assets of the company. Hire |
purchase borrowings are secured on the assets concerned. |
10. | Other financial commitments |
The company has future operating lease commitments of £59,900 (2015: £66,515). |
11. | Related party disclosures |
Loans from directors are included within the Creditors note above. |