EXAGEN WYMESWOLD LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The principal activity of the company is that of developing solar and battery storage projects.
2.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 Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
At the balance sheet date, the company's liabilities exceeded assets. The company is reliant on continued support from the parent company and the directors confirm that they expect the support to continue for the foreseeable future. The net liability position is expected for a company whose projects are in development and require early stage funding. For these reasons, the directors continue to adopt the going concern basis in preparing the accounts.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Tangible fixed assets are reported as assets in the balance sheet sheet if it is likely that there will be future financial benefit for the company and the costs of the asset can be calculated in a reliable manner.
Tangible fixed assets represents the costs of construction of solar plants and battery storage, solar panels, civil/structural and electrical costs, grid connection, planning and professional fees that are directly attributable to bringing the asset to its location working condition for its intended use.
Assets under construction are recognised initially at cost and are not depreciated until the asset is available for its intended use.
A review of indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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