AnnuAl RepoRt And Accounts - Mobile Tornado

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Accounting policies1.3 Revenue recognitionRevenue comprises the fair value of consideration receivable for the sale of licences,services and goods, excludes inter-company sales and value-added taxes andrepresents net invoice value less estimated rebates, returns and settlement discounts.Licence and service revenues are recognised over the period to which the licence andservices relate. When the outcome of transactions involving the rendering of servicescan be estimated reliably, revenue is recognised by reference to the project’s stage ofcompletion at the balance sheet date.Unrecognised license and service revenues and associated costs of sale are included asdeferred income and deferred cost respectively in the balance sheet.The Group recognises revenue on perpetual license fees and hardware sales when therisks and rewards of ownership have been transferred to the purchaser.1.4 Exceptional itemsExceptional items are non-recurring material items which are outside the normal scopeof the Group’s ordinary activities such as liabilities and costs arising from a fundamentalrestructuring of the Group’s operations. Such items are disclosed separately within thefinancial statements.1.5 InterestInterest is recognised on a time-proportion basis using the effective interest method.1.6 Employee benefitsPension obligationsThe Group does not operate a pension scheme but makes contributions to the personalschemes of some of its employees. These contributions are charged to the incomestatement.1.7 Share-based paymentsThe Group operates equity-settled share-based remuneration plans for its employees.The fair value of options granted is recognised as an employee expense with acorresponding increase in equity. The fair value is measured at grant date and spreadover the period during which the employees become unconditionally entitled to theoptions. The fair value of the options granted is measured using the Black-Scholespricing model, which takes into account the terms and conditions upon which theoptions were granted. The amount recognised as an expense is adjusted to reflect theactual number of share options that vest except where variations are due only to shareprices not achieving the threshold for vesting.1.8 Foreign currency translationThe consolidated financial statements are presented in UK Sterling (GBP £), which isalso the functional currency of the Parent Company.Foreign currency transactions are translated into the functional currency of therespective Group entity, using the exchange rates prevailing at the dates of thetransactions (spot exchange rate). Foreign exchange gains and losses resulting from thesettlement of such transactions and from the remeasurement of monetary items atyear-end exchange rates are recognised in profit or loss.Page 18
Accounting policiesNon-monetary items measured at historical cost are translated using the exchangerates at the date of the transaction (not retranslated). Non-monetary items measuredat fair value are translated using the exchange rates at the date when fair value wasdetermined.In the Group’s financial statements, all assets, liabilities and transactions of Groupentities with a functional currency other than sterling (the Group’s presentationcurrency) are translated into sterling upon consolidation. The functional currency of theentities in the Group have remained unchanged during the reporting period.On consolidation, assets and liabilities of foreign operations have been translated intosterling at the closing rate at the reporting date. Income and expenses have beentranslated into the Group’s presentation currency at the average rate over the reportingperiod. Exchange differences are charged/credited to comprehensive income andrecognised in the currency translation reserve in equity. On disposal of a foreignoperation, the cumulative translation differences recognised in equity are reclassified toprofit or loss and recognised as part of the gain or loss on disposal. Goodwill and fairvalue adjustments arising on the acquisition of a foreign entity have been treated asassets and liabilities of the foreign entity and translated into sterling at the closing rate.1.9 TaxationThe charge for taxation is based on the profits for the year and takes into accounttaxation deferred because of temporary differences between the treatment of certainitems for taxation and for accounting purposes.Temporary differences arise from the inclusion of profits and losses in the accounts indifferent periods from which they are recognised in tax assessments and primarily ariseas a result of the difference between tax allowances on property, plant & equipment andthe corresponding depreciation charge. Full provision is made for the tax effects of thesedifferences using tax rates substantively enacted at the balance sheet date.No provision is made for unremitted earnings of foreign subsidiaries where there is nocommitment to remit such earnings. Similarly, no provision is made for temporarydifferences relating to investments in subsidiaries since realisation of such differencescan be controlled and is not probable in the foreseeable future. Deferred tax assets arerecognised to the extent that it is probable that future taxable profit will be availableagainst which the temporary differences can be utilised.1.10 Property, plant & equipmentProperty, plant and equipment is stated at historical cost less depreciation. The Group’spolicy is to write off the difference between the cost of all property, plant and equipmentand their residual value on a straight line basis over their estimated useful lives asfollows:Office equipmentComputer equipmentLeasehold improvement3 years3 years10 yearsReviews are made annually of the estimated remaining lives and residual values ofindividual productive assets, taking account of commercial and technologicalobsolescence as well as normal wear and tear, and adjustments are made whereappropriate. All individual assets are reviewed for impairment when there areindications that the carrying value may not be recoverable.Page 19
Page 1: Annual Report and Accountsfor the y
Page 4 and 5: Chairman’s reportIntroductionMobi
Page 6 and 7: Chairman’s reportOutlookMobile de
Page 8 and 9: Directors’ reportDirector at NICE
Page 10 and 11: Directors’ reportInterest risk -
Page 12 and 13: Directors’ reportthe assets of th
Page 14 and 15: Report of the independent auditor t
Page 16 and 17: Consolidated statement of changes i
Page 18 and 19: Consolidated statement of cash flow
Page 22 and 23: Accounting policies1.11 Research an
Page 26 and 27: Notes to the financial statementsFo
Page 36 and 37: Notes to the Company financial stat
Page 38 and 39: Notes to the Company financial stat
Page 40 and 41: Notice of Annual General MeetingNOT
Page 42 and 43: Notice of Annual General MeetingNot
Page 44 and 45: Corporate informationCompany Regist

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