ACCOUNTING POLICIES The following accounting policies have been applied consistently, throughout the year and proceeding year, in dealing with items which are considered material in relation to the financial statements. Advantage has been taken of paragraph 4(1) of Schedule 1 to the Accounting Regulations to allow the format of the financial statements to be adapted to reflect the special nature of the Company’s operations. BASIS OF PREPARATION The financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 – “The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland” (“FRS102”), and with the Companies Act 2006, and under the historical cost accounting rules. The financial statements are presented in Sterling (£). Under FRS102 the company is exempt from the requirement to prepare a cash flow statement on the grounds that its parent entity North Yorkshire Council prepares consolidated accounts. GOING CONCERN The Directors have reviewed the financial condition of the Company and of North Yorkshire Council (the Authority), the ultimate parent undertaking, including consideration of uncertainties relating to future availability of projects. Based upon the current funding position and the forecast funding in the short term the Company will require the continued support of the Authority as parent undertaking. The Authority has indicated its intent to continue to support the Company for at least the next twelve months although this support is not legally binding. The Directors have considered the current situation of the Authority to provide support and on this basis, the Directors are satisfied that it is reasonable to prepare the financial statements on the going concern basis. GRANTS RECEIVABLE Grants receivable are recognised in the profit and loss account as the related expenditure is incurred and there is reasonable assurance that the grant will be received. GRANTS PAYABLE Grants payable are recognised in the profit and loss account as the related activity is undertaken. Leases Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. TAXATION Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantially enacted by the balance sheet date.Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date when transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the Company’s taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements. A net deferred tax asset is regarded as recoverable and therefore recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.