Page 75 - 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

- Any non-recurring integration used as the basis for consideration The Group do not consider that there
costs; Any gain or loss on the to the level of dividend payments. are any other critical accounting
revaluation of contingent judgements in the preparation of
consideration where it is 2. CRITICAL ACCOUNTING the financial statements.
material; and JUDGEMENTS AND KEY SOURCES
- Any material non-recurring OF ESTIMATION UNCERTAINTY KEY ESTIMATIONS
costs where their removal The key assumptions concerning
is necessary for the proper KEY JUDGEMENTS the future, and other key sources of
understanding of the underlying The key judgements in preparation estimation uncertainty at the year
profit for the period. of the financial statements are end, that have a significant risk of
as follows: causing a material adjustment to
The Group considers underlying the carrying amounts of assets and
profit before tax to be a useful Revenue liabilities within the next financial
measure of performance because The Group applies judgment for year, are discussed below.
it eliminates the impact of certain elements of revenue recognition. The
non-recurring items including those key areas of assessment include Goodwill and other indefinite life FINANCE
associated with acquisitions and whether The Group acts as a principal intangible assets
other charges commonly excluded vs an Agent for the sale of hardware, The Group tests annually, or
from profit before tax by investors where third parties are utilised, and the more frequently if events or
and analysts for valuation percentage of split between licence changes in circumstances
purposes. and maintenance for the sale of indicate impairment, whether
software licences. Full details of The goodwill and other indefinite life
Underlying diluted earnings per share Group’s revenue recognition policy intangible assets have suffered any
Underlying diluted earnings and these judgements can be impairment, in accordance with
per share is calculated by taking found on page 65. the accounting policy stated in
the adjusted profit before tax as note 1. The recoverable amounts of
described after deducting an Right of Use assets and liabilities cash-generating units have been
appropriate taxation charge The Group applies judgement for determined based on value-in-use
and dividing by the total elements of capitalising leases calculations. These calculations
weighted average number of under IFRS 16. The key areas of require the use of assumptions,
ordinary shares in issue during the assessment include the treatment including estimated discount rates
year and adjusting for the dilutive of the lease where the term is based on the current cost of capital
potential ordinary shares relating not clearly defined as well as and growth rates of the estimated
to share options. the applicable discount rate future cash flows. Sensitivity
applied. Where the term is not analysis is also performed to
The Group considers adjusted clearly defined, management use reduce growth assumptions and
diluted earnings per share to be a judgement to determine the likely increase discount rates in order to
useful measure of performance for term of the lease by reference to ascertain if there is still sufficient
the same reasons as underlying comparable contracts and terms headroom in the asset, see note 10.
profit before tax. In addition, it is as well as the future needs and
strategy of the business.
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