SCL ELECTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 2. Accounting policies (continued) 2.9 Dividends Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. 2.10 Preparation of consolidated financial statements The financial statements contain information about SCL Elections Limited as an individual company and do not contain consolidated financial information as the parent of a small group. The company has taken the option under Section 398 of the Companies Act 2006 not to prepare consolidated financial statements. 2.11 Operating leases: the Company as lessee Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the lease term. Benefits received and receivable as an incentive to sign an operating (ease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. 2.12 Taxation Tax is recognised in the Statement of comprehensive income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. 2.13 Exceptional items Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence. 3. Employees The average monthly number of employees, including directors, during the year was 46 (2015 - 33). 4. Dividends 2016 2015 £ £ Dividends paid 117,764 117,764 Page 4 SCL ELECTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 S. Tangible fixed assets Fixtures and fittings Office equipment Total £ £ £ Cost At 1 January 2016 7,084 64,847 71,931 Additions 26,500 - 26,500 At 31 December 2016 33,584 64,847 98,431 Depreciation At 1 January 2016 1,680 20,364 22,044 Charge for the period on owned assets 2,916 12,969 15,885 At 31 December 2016 4,596 33,333 37,929 Net book value At 31 December 2016 28,988 31,514 60,502 At 31 December 2015 5,405 44,483 49,888 Page 5 SCL ELECTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 6. Fixed asset investments Investments in subsidiary companies £ Cost . At 1 January 2016 678 At 31 December 2016 678 Net book value At 31 December 2016 678 At 31 December 2015 678 Subsidiary undertakings The following were subsidiary undertakings of the Company: Country of Class of Name incorporation shares Holding SCL USA inc USA Ordinary 100% Cambridge Analytica(UK) Limited (formerly SCL USA Limited) UK Ordinary 100% 7. Debtors 2016 2015 £ £ Trade debtors 145,512 1107 Amounts owed by related undertakings 869,595 928,119 Other debtors 348,773 201,418 Prepayments and accrued income 3,318,531 851,575 4,682,411 1,988,219 Page 6 SCL ELECTIONS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 8. Creditors: Amounts falling due within one year 2016 2015 £ £ Trade creditors 712,159 575,206 Amounts owed to related undertakings 1,760,023 597,196 Corporation tax 556,055 - Other taxation and social security 89,870 66,408 Other creditors 4,615 332,706 Accruals and deferred income 907,564 290,475 4,030,286 1,861,991 Commitments under operating leases At 31 December 2016 the Company had future minimum lease payments under non-cancellable operating leases as follows: 2016 2015 £ £ Not later than 1 year 184,487 5,125 Later than 1 year and not later than 5 years 34,750 - 219,237 5,125 10. Related party transactions The Company has taken advantage of the exemption within Section 33 of FRS 102 not to disclose transactions with other wholly owned members of the group. The Company owns a 19.0% share in Cambridge Analytica LLC, a US entity in which Alexander Nix is a board member £24.2m (2015: £12.4m) income was received from this entity during the year and no costs were due by the Company in respect of losses incurred by the entity. There was no cost of this investment. At the year end, the Company was owed £869,595 (2015: £922,440) by this entity. At the year end, Alexander Nix owed £NIL to (2015: £8,506) SCL Elections Limited. The loan was interest free and has been paid in full during the year 11. Controlling party The ultimate controlling party throughout the period was Alexander Nix. 1 2. First time adoption of FRS 1 02 The policies applied under the entity’s previous accounting framework are not materially different to FRS 102 and have not impacted on equity or profit or loss. Page 7