WASSICK SOLAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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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.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Tax is recognised in Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date in the countries where the Company operates and generates income.
Development costs represent the costs incurred in bringing individual projects to the consented stage. Expenditure on research into identifying suitable sites, payment to landowners to secure the land and payment to grid manager to secure the connections. Once site selection has been reached and option over the land is acquired, the option forms the basis of the development of asset. Subsequently, directly attributable costs, including planning application costs are treated as capitalized if a clearly defined project, the expenditure is separately identifiable, the outcome of the project can be assessed reasonable certainty, aggregate costs are expected to be exceeded by related future sales and adequate resources exists to enable the project to be completed.
To determine whether a project is a Qualifying asset, the Company’s management assess whether the statutory approvals, the interests in the land, the electricity connection feasibility etc. led to the conclusion that it is probable the project will produce economic benefits for the Company (i.e., it is likely the project will reach be the stage of completion and will be commercially active.)
Short-term debtors are measured at transaction price, less any impairment.
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