Page 69 - Beeks Financial Cloud Group Annual Report 2021

Beeks Financial Cloud Group PLC
Notes to the Consolidated Financial Statements For the year ended 30 June 2021

relate to material non-recurring against which to recover carried Deferred tax assets and liabilities are
costs. These are disclosed separately forward tax losses and from which always classified as non-current.
where it is considered it provides the future reversal of temporary
additional useful information to the differences can be deducted. CASH AND CASH EQUIVALENTS
users of the financial statements. The carrying amount of deferred Cash at bank, overnight and longer
tax assets are reviewed at each term deposits which are held for the
TAXATION AND reporting date. purpose of meeting short term cash
DEFERRED TAXATION commitments are disclosed within
The income tax expense or income CURRENT AND NON-CURRENT cash and cash equivalents.
for the period is the tax payable on CLASSIFICATION
the current period’s taxable income. Assets and liabilities are presented FINANCIAL INSTRUMENTS
This is based on the national income in the statement of financial A financial instrument is any contract
tax rate enacted or substantively position based on current and that gives rise to a financial asset
enacted for each jurisdiction with non-current classification. in one entity and a financial liability
any adjustment relating to tax or equity instrument in another
payable in previous years and An asset is classified as current and is recognised when The Group FINANCE
changes in deferred tax assets and when: it is either expected to be becomes party to the contractual
liabilities attributable to temporary realised or intended to be sold or provisions of the instrument.
differences between the tax bases of consumed in The Group’s normal
assets and liabilities and their carrying operating cycle; it is held primarily Financial assets and liabilities are
amounts in financial statements. for the purpose of trading; it is recognised initially at fair value, and
expected to be realised within subsequently measure at amortised
Deferred tax assets and liabilities 12 months after the reporting costs, with any directly attributable
are recognised for temporary period; or the asset is cash or cash transaction costs adjusted against
differences at the tax rates expected equivalent unless restricted from fair value at initial recognition and
to be applicable when the asset or being exchanged or used to settle recognised immediately in the
liability crystallises based on current a liability for at least 12 months after consolidated income statement
tax rates and laws that have been the reporting period. All other assets as a profit or loss.
enacted or substantively enacted by are classified as non-current.
the reporting date. The relevant tax FINANCIAL ASSETS
rates are applied to the cumulative A liability is classified as current when: Trade and other receivables
amounts of deductible and taxable it is either expected to be settled in Trade and other receivables are
temporary differences to measure The Group’s normal operating cycle; initially recognised at transaction
the deferred tax asset or liability. it is held primarily for the purpose of price, less allowances for impairment.
trading; it is due to be settled within These are subsequently measured
A deferred tax asset is regarded 12 months after the reporting period; at amortised costs using effective
as recoverable and therefore or there is no unconditional right to interest method. An allowance for
recognised only when, on the basis defer the settlement of the liability impairment of trade and other
of all available evidence, it can be for at least 12 months after the receivables is established when
regarded as more likely than not that reporting period. All other liabilities there is evidence that Beeks Financial
there will be suitable taxable profits are classified as non-current. Cloud Group PLC will not be able to
67