Atlantis Japan Grwth - Half Yearly Report - Part 2
17/12/2014 16:52
- Part 2: For the preceding part double click ID:nRSQ0998Aa
Due from brokers 2,241 1,262
2(d) Dividends and other receivables 1,043 946
2(g) Cash and cash equivalents 614 695
3,898 2,903
Current Liabilities
Due to brokers (1,661) (846)
Payables and accrued expenses (289) (210)
2(h), 12 Loans payable (11,210) (12,195)
(13,160) (13,251)
Net Current Liabilities (9,262) (10,348)
Net Assets 85,053 84,086
Equity
8 Ordinary share capital - -
8 Share premium - -
Revenue reserve (22,354) (24,111)
2(l) Capital reserve 107,407 108,197
Net Assets Attributable to Equity Shareholders 85,053 84,086
Net Asset Value per Ordinary Share* $2.04 $1.92
*Based on the Net Asset Value at the period end divided by the number of shares in issue: 41,729,329 (30th April 2014 -
43,894,158) (See Note 8)
Approved by the Board of Directors on 16 December 2014 and signed on its behalf by:
Noel Lamb Andrew Martin Smith
Chairman Director
Uuaudited Statement of Cash Flows
For the six months ended 31st October 2014
31st October 2014 30th April 2014
Notes $'000 $'000
Reconciliation of profit for the period to net cash flows
from operating activities
Profit/(loss) before taxation 5,479 (1,006)
3 (Gain)/loss on investments held at fair value (4,911) 1,551
Gain on foreign exchange (900) (335)
Interest expense and bank charges 98 155
Increase in dividends and other receivables (97) (125)
Increase/(decrease) in payables and accrued expenses 79 (25)
Taxation paid (131) (267)
Net cash outflow from operating activities (383) (52)
Investing Activities
Purchase of investments (43,541) (69,908)
Sale of investments 48,575 80,918
Net cash inflow from investing activities 5,034 11,010
Net cash inflow before financing 4,651 10,958
Cash flows from financing activities
Interest paid (98) (125)
Redemptions (4,029) (14,336)
Treasury shares (352) (103)
Net loans drawn down - 3,948
Net cash outflow from financing activities (4,479) (10,616)
Net increase in cash and cash equivalents 172 342
Exchange movements (253) (250)
Movement in cash and cash equivalents in the period/year (81) 92
Cash and cash equivalents at beginning of period/year 695 603
Cash and cash equivalents at end of period/year 614 695
Notes to the Unaudited Financial Statements
For the six months ended 31st October 2014
1. GENERAL
Atlantis Japan Growth Fund Limited (the "Company") was incorporated in Guernsey on
13th March 1996. The Company commenced activities on 10th May 1996.
2. ACCOUNTING POLICIES
a) Statement of Compliance
The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards
("IFRS"), which comprise standards and interpretations approved by the European Union and International Accounting
Standards, and Standing Interpretations Committee interpretations approved by the IASC that remain in effect.
The condensed interim financial statements for the half year ended 31st October 2014 have been prepared in accordance with
IAS 34, 'Interim Financial Reporting' and the Disclosures and Transparency Rules ("DTRs") of the UK's Financial Conduct
Authority.
The condensed interim financial statements do not include all of the information required for full financial statements,
and should be read in conjunction with the financial statements for the Company as at and for the year ended 30th April
2014. The financial statements of the Company as at and for the year ended 30th April 2014 were prepared in accordance with
International Financial Reporting Standards ("IFRS").
Except as described below, the accounting policies applied by the Company in these condensed interim financial statements
are the same as those applied by the Company in its financial statements as at and for the year ended 30th April 2014.
Basis of accounting
The Financial Statements have been prepared under the historical cost convention, as modified by the revaluation of
financial assets and financial liabilities held at fair value through profit or loss, and in accordance with International
Financial Reporting Standards ("IFRS"), and The Association of Investment Companies ("AIC") Statement of Recommended
Practice ("SORP") for Investment Trust Companies and Venture Capital Trusts to the extent it is not in conflict with IFRS
and the Company's principal documents.
The preparation of the Financial Statements in conformity with IFRS requires management to make judgements, estimates and
assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expense.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to
be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values
of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those
estimates.
The accounting policies adopted are consistent with those of the previous financial year and are set out below:
b) Going Concern
The Directors believe that the Company has adequate resources to continue in operational existence for the foreseeable
future. The Company has introduced a redemption facility and as a result the Company has reduced in size since this was
implemented. Because the Company is invested in listed and readily realisable assets these outflows have had no material
effect on the Company's ability to meet its on going obligations therefore the Directors believe the use of the going
concern basis is still appropriate as there are no material uncertainties relating to events or conditions that may cast
significant doubt about the ability of the Company to continue as a going concern.
c) Presentation of Statement of Comprehensive Income
In order to better reflect the activities of an investment trust company supplementary information which analyses the
Statement of Comprehensive Income between items of a revenue and capital nature has been presented alongside the Statement
of Comprehensive Income.
d) Income Recognition
Dividends arising on the Company's investments are accounted for on an ex-dividend basis. Investment income is accounted
for gross of withholding tax.
e) Expenses
All expenses are recognised on an accruals basis and have been charged against revenue.
f) Investments
The Company's business is investing in financial assets with a view to profiting from their total return in the form of
income and capital growth. This portfolio of financial assets is managed and its performance evaluated on a fair value
basis, in accordance with a documented investment strategy, and information about the portfolio is provided internally on
that basis to the Company's Board of Directors.
Accordingly, upon initial recognition the investments are designated by the Company as 'at fair value through profit or
loss'. They are included initially at fair value, which is taken to be their cost (excluding expenses incidental to the
acquisition which are written off in the Statement of Comprehensive Income, and allocated to the capital column of the
Statement of Comprehensive Income at the time of acquisition). Subsequently, the investments listed overseas are valued at
'fair value', which is mid-market price based on published price quotations.
Gains and losses on non-current asset investments are included in the Statement of Comprehensive Income as capital.
g) Cash and Cash Equivalents
Cash and cash equivalents comprise cash at bank and in hand and short-term deposits with an original maturity of three
months or less.
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents, as defined
above, net of outstanding bank overdrafts.
h) Loans Payable
All loans are initially recognised at cost, being the fair value of the consideration received, less issue costs where
applicable. After initial recognition, all interest bearing loans and borrowings are subsequently measured at amortised
cost. Amortised cost is calculated by taking into account discount or premium on settlement. Any costs of arranging any
interest-bearing loans are capitalised and amortised over the life of the loan.
i) Foreign Currencies
The Company's investments are predominately denominated in Japanese yen. The Company's obligation to shareholders is
denominated in US dollars and when appropriate, the Company may hedge the exchange rate risk from yen to US dollars.
Therefore, the functional currency is US dollars, which is also the presentation currency of the Company. Transactions
involving currencies other than US dollars, are recorded at the exchange rate ruling on the transaction date. At each
Statement of Financial Position date, monetary items and non-monetary assets and liabilities that are fair valued, which
are denominated in foreign currencies, are retranslated at the closing rates of exchange.
Exchange differences arising from retranslating at the Statement of Financial Position date of;
- investments and other financial instruments measured at fair value through profit or loss; and
- other monetary items;
and arising on settlement of monetary items, are included in the Statement of Comprehensive Income and allocated as capital
if they are of a capital nature, or as revenue if they are of a revenue nature.
j) Taxation
The tax expense represents the sum of the tax currently payable and deferred tax. In addition, the Company incurs
withholding taxes imposed by certain countries on dividend and interest income. Such income is recognised gross of the
taxes and the corresponding withholding tax is recognised as a tax expense.
There is no tax currently payable as the company incurred a loss during the period. Any taxable profit differs from the net
profit, if any, as reported in the Statement of Comprehensive Income because it excludes items of income or expense that
are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's
liability for current tax is calculated using tax rates that were applicable at the Statement of Financial Position date.
In line with the recommendations of the AIC SORP, the allocation method used to calculate tax relief on expenses presented
against capital returns in the supplementary information in the Statement of Comprehensive Income is the "marginal basis".
Under this basis, if taxable income is capable of being offset entirely by expenses presented in the revenue return column
of the Statement of Comprehensive Income, then no tax relief is transferred to the capital return column.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is
accounted for using the balance sheet liability method. A deferred tax liability is recognised in full for all taxable
temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be
available against which deductible temporary differences can be utilised. Investment trusts which have approval as such
under section 1158 of the Corporation Tax Act 2010 are not liable for taxation on capital gains.
The carrying amount of deferred tax assets is reviewed at each Statement of Financial Position date and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to
be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the
asset is realised. Deferred tax is charged or credited in the Statement of Comprehensive Income, except when it relates to
items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
k) Financial Liabilities
Financial liabilities are recognised when the Company becomes a party to the contractual agreements of the instrument.
Trade and other payables are initially recognised at their nominal value and subsequently measured at amortised cost less
settlement payments. Financial liabilities are derecognised from the Statement of Financial Position only when the
obligations are extinguished either through discharge, cancellation or expiration.
l) Capital Reserve
The capital reserve distinguishes between gains/(losses) on sale or disposals and valuation gains/(losses) on investments.
The capital reserve consists of realised gains/(losses) on investments, movement in valuation gains/(losses) on investments
and gains/(losses) relating to foreign exchange.
m) Treasury Shares
Where the Company purchases its own share capital (whether into treasury or cancellation), the consideration paid, which
includes any directly attributable costs (net of income taxes) is recognised as a deduction from equity shareholders' funds
through the revenue reserve, which is a distributable reserve.
When such shares are subsequently sold or reissued, and consideration received, net of any directly attributable
incremental transaction costs and the related income tax effects, is recognised as an increase in equity and proceeds from
the reissue of treasury shares are transferred to/from the revenue reserve.
Shares held in treasury are not taken into accou