Page 66 - Beeks Financial Cloud Group Annual Report 2021

64 Beeks Financial Cloud Group PLC For the year ended 30 June 2021

Notes to the Consolidated Financial Statements

Notes to

Financial Statements

with the end of management’s liabilities incurred to former owners Foreign operations
assessment period. Within these of the acquiree and the equity The assets and liabilities of foreign
scenarios, we have taken into interests issued to The Group. The operations are translated into pound
consideration the acquisition of consideration transferred includes sterling using the exchange rates
the property referenced in the the fair values of any asset or at the reporting date. The revenues
subsequent events section. After liability resulting from a contingent and expenses of foreign operations
making enquiries, the directors consideration arrangement. are translated into Pound sterling
have a reasonable expectation Identifiable assets acquired using the average exchange rates,
that The Group will be able to meet and liabilities and contingent which approximate the rates at the
its financial obligations and has liabilities assumed in a business dates of the transactions, for the
adequate resources to continue combination are measured initially period. All resulting foreign exchange
in operational existence for the at their fair values on the acquisition differences are recognised in other
foreseeable future. For this reason date. Acquisition related costs are comprehensive income through the
they continue to adopt the going expensed as incurred. As each of the foreign currency reserve in equity.
concern basis in preparing the subsidiaries are 100% wholly owned,
financial statements. The Group has full control over Business Combinations
each of its investees. Intercompany Acquisitions of subsidiaries are
FINANCE
Accordingly, the Directors have transactions, unrealised gains and accounted for using the acquisition
adopted the going concern basis losses on intragroup transactions and method. The acquisition method
in preparing the Report for the year balances between group companies involves the recognition at fair value
ending 30 June 2021. are eliminated on consolidation. of all identifiable assets and liabilities,
including contingent liabilities of
PRINCIPLES OF CONSOLIDATION Foreign currency transactions the subsidiary, at the acquisition
Subsidiaries are all entities over Foreign currency transactions date, regardless of whether or not
which The Group has control. The translated into pound sterling using they were recorded in the financial
Group controls an entity when The the exchange rates prevailing at statements of the subsidiary prior to
Group is exposed to, or has rights to, the dates of the transactions. acquisition. On initial recognition, the
variable returns from its involvement Foreign exchange gains and losses assets and liabilities of the subsidiary
with the subsidiary and has the resulting from the settlement of are included in the statement of
ability to affect those returns through such transactions and from the financial position at their fair values,
its power over the entity. Subsidiaries translation at financial year-end which are also used as the bases
are fully consolidated from the date exchange rates of monetary assets for subsequent measurement
on which control is transferred to and liabilities denominated in in accordance with The Group
The Group. They are deconsolidated foreign currencies are recognised accounting policies.
from the date that control ceases. in profit or loss. Foreign exchange
The Group applies the acquisition gains and losses resulting from Where The Group’s assessment of
method to account for business the retranslation of inter-company the net fair value of a subsidiary’s
combinations. The consideration balances are recognised in the identifiable assets acquired and
transferred for the acquisition of a profit and loss account. Non liabilities assumed is less than
subsidiary or a business is the fair monetary assets are translated at the fair value of the consideration
values of the assets transferred, the the historical rate. including contingent consideration