IPOWER_MICRO_CHP_LIMITED - Accounts
IPOWER_MICRO_CHP_LIMITED - Accounts
iPower Micro CHP Limited is a private company limited by shares incorporated in Scotland. The registered office is 17 Kenilworth Road, Bridge of Allan, Stirling, FK9 4DU.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
These financial statements for the year ended 31 March 2017 are the first financial statements of iPower Micro CHP Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 April 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
Due to the issue encountered with the liquidation of a supplier to whom a deposit was paid, the company is not in a position to meet the repayment terms of a loan from Social Growth Fund LLP. Social Investment Scotland, who manage the Social Growth Fund LLP’s lending, has indicated that it does not intend to enforce the loan repayment terms in their current form, and has confirmed its willingness to restructure the loan into a form which would not jeopardise the continued trading of the company, or its associates, as going concerns.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
iPower Micro CHP Limited and iPower Energy Limited have a cross guarantee detailing that each party to the guarantee undertakes to settle any liability of the other company should that other company be unable to pay its creditors. The SIS loan of £531,521 (2016: £531,521) taken out by iPower Micro CHP is cross guaranteed between both iPower Micro CHP and iPower Energy Limited. The SIS loan is no longer repayable under the terms of the original loan agreement. The loan will now only become repayable based on the performance and future profitability of the Company.
iPower Energy Limited, the parent company, supplied £nil(2016: £1,500) of services to the company during the period. These services were supplied on normal commercial terms.
During the year the company made loans to and received loans from iPower Energy, the parent company. At the year end the balance due from iPower Energy was £27,856 (2016: £90) which is included within debtors.