Financials
Turnover Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for delivery services provided in the normal course of business, net of discounts, rebates and Value Added Tax. Sales are recognised only on the passing over of Downstream Access Mail and Parcels to Royal Mail and other carriers for final distribution. Doordrop Media revenue is derived from client specific contractual arrangements, for delivery of marketing material and/or market research across a variety of distribution networks. Invoiced amounts, exclusive of Value Added Tax, are recognised within the profit and loss account in the month of delivery. Revenue recognised but not billed for services delivered during the financial year has been recognised as accrued income in the statement of financial position.
Intangible assets Intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses.
Amortisation is charged to allocate the cost of intangibles less their residual values over their estimated useful lives, using the straight-line method. The intangible assets are amortised over the following useful economic lives:
Computer software/IT infrastructure – 3 to 5 years straight line.
Assets under construction which consist of computer software under development are included in the category of intangible assets at cost and are not depreciated. The expected useful lives of the assets are reassessed periodically. Tangible fixed assets Tangible fixed assets are measured at cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bring the asset to its working condition for intended use. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Long leasehold property - over term of lease Plant and machinery
- 5 to 10 years straight line
Fixtures and fittings Computer equipment
- 5 years straight line - 3 years straight line
The carrying value of tangible fixed assets is reviewed for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. Fixed asset investments – subsidiary undertakings Investments are stated at the cost of the shares plus all other associated costs less any provision for impairment. Investments are reviewed annually and impairments are assessed if the investment’s carrying value is greater than the recoverable amounts. Impairment of assets At each reporting date, fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. The carrying value of intangible and tangible fixed assets are reviewed for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.
Financial instruments The Group has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by Group undertakings, are initially recognised at transaction price, 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. At the end of each reporting period financial assets are measured at amortised cost, net of any allowance for impairment in relation to irrecoverable amounts. The impairment is recognised in the profit and loss.
Financials | Whistl Annual Report 2016
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