3 Accruals for tax contingencies require management to make judgments of potential exposures in relation to tax audit issues. Tax benefits are not recognised unless the tax positions will probably be accepted by the authorities. This is based upon management‘s interpretation of applicable laws and regulations and the expectation of how the tax authority will resolve the matter. Once considered probable of not being accepted, management reviews each material tax benefit and reflects the effect of the uncertainty in determining the related taxable result. Accruals for tax contingencies are measured using either the most likely amount or the expected value amount depending on which method the Company expects to better predict the resolution of the uncertainty. Investments Fixed asset investments, including investments in subsidiaries, are stated at cost and reviewed for impairment if there are indications that the carrying value may not be recoverable. Share-based payments The issuance by the Company to employees of its subsidiaries of a grant of awards over the Company’s shares, represents additional capital contributions by the Company to its subsidiaries. An additional investment in subsidiaries results in a corresponding increase in shareowners’ equity. The additional capital contribution is based on the fair value of the grant issued, allocated over the underlying grant’s vesting period, less the market cost of shares charged to subsidiaries in settlement of such share awards. Litigation Through the normal course of business, the Group is involved in legal disputes the settlement of which may involve cost to the Company. Provision is made where an adverse outcome is probable and associated costs can be estimated reliably. In other cases, appropriate descriptions are included. Dividends Up to the date of approval of these financial statements and in 2021, 2020, no dividends were paid by S4Capital plc to its shareowners. Employees The Company had no employees during either year. Details of Directors’ emoluments, which were paid by another Group company, are set out in the Directors’ Remuneration Report on pages 71 to 91. Restatements The Group has restated its consolidated balance sheet as of 31 December 2020 for business combinations as disclosed in Note 4 of the Consolidated financial statements 2021. Restatements related to the business combination of Decoded have impacted the company balance sheet as of 31 December 2020 in the Company financial statements 2021 as follows: 31 Dec 2020 31 Dec 20 Adjustment Restated Restatement Note £000 £000 £000 Investments in subsidiaries 750,103 2,234 752,337 Other reserves 27,041 2,234 29,275 1. Investments in subsidiaries Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment. 31 Dec 2020 1 31 Dec 2021 Restated £000 £000 Balance as at the beginning of the year 752,337 503,236 Capital contributions 138,795 237,136 Share-based compensation 13,876 11,965 Balance as at the end of the year 905,008 752,337 Note: 1. Restated for the initial accounting for the business combination of Decoded as required by IFRS 3. Details are disclosed in Note F. S4Capital Annual Report and Accounts 2021 165