Page 30 - AGM Pamphlet 2021

Notes To The Financial Statements

For The Year Ended 31 December 2020

1. Statutory Information
The Security Institute is a private company, limited by guarantee, registered in England and
Wales. The company’s registered number and registered office address can be found on
the Company Information page.

The Security Institute is a private company, limited by guarantee and consequently does
2020 Annual Accounts
not have share capital. Each of the members are liable to contribute an amount not
exceeding £1 towards the assets of the company in the event of liquidation.
2. Accounting Policies

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting
Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of
Ireland” including the provisions of Section 1A “Small Entities” and the Companies Act 2006.
The financial statements have been prepared under the historical cost convention.
Turnover
Turnover is measured at the fair value of the consideration received or receivable,
excluding discounts, rebates, value added tax and other sales taxes. Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over
its estimated useful life.
• Website - 20% on cost
• Fixtures and fittings - 15% on reducing balance
• Computer equipment - 33% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance
for obsolete and slow moving items.
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income
Statement, except to the extent that it relates to items recognised in other comprehensive
income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that
have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not
reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in
periods different from those in which they are recognised in financial statements. Deferred
tax is measured using tax rates and laws that have been enacted or substantively enacted
by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that
it is probable that they will be recovered against the reversal of deferred tax liabilities or
other future taxable profits.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to
the company’s pension scheme are charged to profit or loss in the period to which they
relate.

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