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ENVIVA MANAGEMENT INTERNATIONAL HOLDINGS, LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
1.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
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Exemption from preparing consolidated financial statements
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The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.
The Company is in a net liability position, primarily supported by a fellow group company Enviva, Inc and the parent company Enviva Management Company, LLC. The directors are aware that the wider group’s recent trading performance has created material uncertainty in relation to their ability to continue supporting this company. Although the group are taking steps to rectify this, there is significant doubt as to the ability of the group to continue supporting operations globally.
This has led to a fall in the share price of the listed entity, Enviva, Inc. within the group. The directors have reviewed forecasts and the expected trading position of the group, including the strategic importance of the Company for a period of at least 12 months and despite the uncertainty have determined that the Company will be able to continue for a period of at least 12 months from the date of approval of these financial statements. As a result, they continue to adopt the going concern basis of preparation.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
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