RE: Armchair Barristers All Round.25 Jul 2023 08:18
11 Other gains and losses
Year to 31 December 2022
Year to 31 December 2021
Group
Company
Group
Company
£
£
£
£
Gains
Net foreign exchange gain
182,640
-
-
-
Gain on disposal of property, plant and equipment
4,952
-
-
-
187,592
-
-
-
Losses
Net foreign exchange loss
-
(64,219)
(65,250)
(26,576)
Loss on revaluation of stock to net realisable value
(2,028,151)
-
-
-
Impairment loss on investments
(814,158)
(389,292)
-
-
(2,842,309)
(453,511)
(65,250)
(26,576)
The majority of the foreign exchange gains and losses are a result of the revaluation of monetary assets and liabilities in the subsidiary accounts as a result of movements in the Rouble exchange rates.
In 2022 the Group took a decision to postpone the sale of platinum and other metals due to a strong Ruble and low platinum price. Stock available at 31 December 2022 represents platinum concentrate ready for refining, which was valued (i) using methodology set in the refining and sale and purchase agreement made with local refinery in 2021 and (ii) exchange rate and metal prices at 31 December 2022.
The Group recognised an impairment loss on (i) the investment made to build a joint venture with Rosgeo (Note 15) due to uncertainty of any near-term development in that regard due to limitations enforced by current sanctions legislation (ii) a loss on an investment in to a UK "waste to electricity" project the company decided not to immediately carry through to binding agreements.
12 Income taxes
(a) tax charged in the statement of profit and loss
Year to
31 December 2022
Year to
31 December 2021
Group
Group
£
£
Current tax
-
-
There was no tax payable by the Company for the year ended 31 December 2022 (2021: nil) due to the Company having taxable losses.
(b) Reconciliation of the total tax charge
Year to
31 December 2022
Year to
31 December 2021
Group
Group
£
£
Loss before tax
(7,230,088)
(3,182,199)
Current tax at 19% (2021: 19%)
(1,373,717)
(604,618)
Adjusted for the effect of:
Expenses not deductible for tax purposes
-
-
Profits not subject to tax
-
-
Tax losses utilised
-
-
Unrecognised tax losses carried forward
1,373,717
604,618
Actual tax expense
-
-
The Group operates in the following jurisdictions with the following applicable tax rates:
Jurisdiction
Year to
31 December 2022
Year to
31 December 2021
United Kingdom
19%
19%
Russia
20%
20%
Cyprus
12.5%
12.5%
No tax is payable for the year ended 31 December 2022 (2021: nil) due to the Group and the Company having taxable losses.