Contents of the Financial Statements

for the Period Ended 31 July 2021

Directors' report period ended 31 July 2021

The directors present their report with the financial statements of the company for the period ended 31 July 2021

Directors

The directors shown below have held office during the whole of the period from
1 August 2020 to 31 July 2021

The director shown below has held office during the period of
1 August 2020 to 31 May 2021

The director shown below has held office during the period of
19 November 2020 to 31 July 2021

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
16 December 2021

And signed on behalf of the board by:
Name: Gavin Edwards
Status: Director

Profit And Loss Account

for the Period Ended 31 July 2021

Balance sheet

As at 31 July 2021

The notes form part of these financial statements

Balance sheet statements

For the year ending 31 July 2021 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The notes form part of these financial statements

Notes to the Financial Statements

for the Period Ended 31 July 2021

• 1. Accounting policies

  Basis of measurement and preparation

  These financial statements have been prepared in accordance with the provisions of Financial Reporting Standard 101

  Turnover policy

  As per FRS 102 Section 23, Income from research project, commercial contracts, professional services and other services rendered is recognised using the percentage of completion method unless it is commercially defined by the contracts. All income from short-term deposits is credited to the profit and loss account in the period in which it is earned.

  Other accounting policies

  These financial statements are prepared on the going concern basis under historical cost convention and in accordance with Companies Act 2006 and applicable accounting policies based upon accounting standard Financial Reporting Standard 102, which have been applied consistently throughout the year as set out below.The Board, after reviewing the Company’s forecasts for 2021/22 through to 2022/23, is of the opinion that the Company has adequate resources to continue in business for the foreseeable future with the support of the University. The financial statements are therefore prepared on a going concern basis. A high level five year forecast is prepared and reviewed by the University Council.Recognition of incomeAs per FRS 102 Section 23, Income from research project, commercial contracts, professional services and other services rendered is recognised using the percentage of completion method unless it is commercially defined by the contracts. All income from short-term deposits is credited to the profit and loss account in the period in which it is earned.Cash and cash equivalentsCash includes cash in hand, cash held with recognised banks, building societies and deposits repayable on demand.Cash equivalents are short-term, highly liquid investments and government securities that are readily convertible to known amounts of cash with insignificant risk of change in value. These include term deposits and other instruments held as part of the company’s treasury management activities. Highly liquid is considered to be holdings which can be liquidated in less than three months.Trade and other debtorsTrade and other debtors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses. Trade and other debtor balances are assessed at each reporting date to determine whether there is objective evidence that it is impaired, any impairment loss is recognised through the profit and loss as soon as it becomes apparent.Trade and other creditorsTrade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method. Gift aid payment presented within shareholders’ fundsGift aid payment is only recognised to the extent that it has been paid prior to the year end, if there is a Companies Act 2006 Section 288 written resolution approved by the Board in the year to pay the taxable profit for the year to its parent by a certain payment date.Research and development expenditureExpenditure on research and development is written off to the profit and loss account in the year in which it is incurred. Unless where there is an intellectual property asset resulted from the research and development activities the relevant cost will be capitalised accordingly.Employee benefitsShort-term employee benefits such as salaries and compensated absences are recognised as an expense in the year employees render service to the IAAPS Limited. A liability is recognised at each Balance Sheet date to the extent that employee holiday allowances have been accrued but not taken, the expense being recognised as staff costs in the Statement of Comprehensive Income. Employee benefits include group life assurance, group income protection and taxable benefits of private medical cover which include free dental benefits.Pension schemesAn occupational pension scheme with Aviva is offered to employees. The cost is included in cost of sales where it relates to technical and engineering staff and recognised as Administrative expenses where it relates to support or management staff.Related party transactionsThe company is a wholly owned subsidiary undertaking of the University. The ultimate parent prepared published consolidated financial statements, and therefore, pursuant to Section 33.1A of FRS 102, no details of transactions with other companies which are subsidiaries of the University are included in these financial statements.TaxationThe charge for taxation is based on the profit for the year and takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes. Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes which have arisen but not reversed by the balance sheet date.Long term contracts The amount of profit or loss attributable to long-term contracts is recognised in accordance to the Income Recognition policy. For such contracts is stated at the cost appropriate to their stage of completion plus attributable profits for the period. Any amount received in advance will be recognised as Deferred Income less amounts recognised in previous years. Any loss expected from the contract is recognised immediately within the reporting period.Contract work in progress is stated at costs incurred, less those transferred to the profit and loss account. Amounts recoverable on contracts are included in debtors and represent turnover recognised in excess of payments on accountDeferred incomeDeferred income represents amounts received in advance for projects where work has not been completed by the balance sheet date.Income recognition - Judgement is applied in determining the value and timing of certain income items to be recognised in the financial statements only in the absence of contractual performance and when the percentage completion method is not applicable. This includes determining when performance related conditions have been met and determining the revenues associated with partially delivered projects. Recoverability of debtors - The provision for doubtful debts is based on our estimate of the expected recoverability of those debts. Assumptions are made based on the level of debtors which have defaulted historically, coupled with current economic knowledge. The provision is based on the current situation of the customer, the age profile of the debt and the nature of the amount due.Accruals – included in accruals are amounts where accounting judgements have been applied regarding future liabilities of past events.

Notes to the Financial Statements

for the Period Ended 31 July 2021

• 2. Employees

  	2021	2020
  Average number of employees during the period	19	2