1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Small Entities (effective April 2008).

Turnover policy
The turnover shown in the Profit and Loss accounts represents amounts received for the supply of services to customers exclusive of value added tax.

Tangible assets depreciation policy
Fixed Assets are stated at cost less depreciation.

Depreciation of the Photovoltaic Systems is charged by equal annual instalments commencing in the year of acquisition over a twenty five year period, in line with the asset’s ability to generate Feed in Tariff income for the company.

Other accounting policies
Cash Flow Statement

The directors have taken advantage of the exemption in Financial Reporting Standard No 1 (Revised 1996) from including a cash flow statement in the financial statements on the grounds that the company is small.

Going Concern

The financial statements have been prepared on a going concern basis. This assumes the continued support of the company’s parent organisation.

Financial Instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that enhances a residual interest in the assets of the company after deducting all of its liabilities.

Deferred Taxation

Deferred taxation is provided using the rates estimated to arise when the timing differences reverse and is accounted for to the extent that it is probable that a liability or asset will crystallise. Deferred tax assets and liabilities have not been discounted.