Micro-entity Accounts - SYNERGY POWER LTD

2Accounting Policies

Turnover policy
Revenue
Revenue is recognised to the extent that it is probable that the economic benefit will flow to the company and the revenue can be reliably measured .Revenue is measured as the fair value of the consideration received or receivable , excluding discounts ,rebates ,value added tax and other sales taxes .The following must also be met before revenue is recognised.


Sale of goods


Revenue from sales of goods is recognised when all the following conditions are satisfied:


: The company has transferred the significant risk and reward of ownership to the buyer:

: The company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold:

: The amount of revenue can be measured reliably:

: It is probable that the company will receive the consideration due under the transaction and the cost incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible assets depreciation policy
Tangible fixed assets

Tangible fixed assets under the cost model are stated at historic cost less accumulated depreciation and any accumulated impairment losses .Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management

Depreciation is charged so as to allocate the cost of assets less the it’s residual value over their estimated useful lives, on a straight line basis.

Depreciation is provided on the following basis:

Equipment -25% on cost

The assets residual values useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the standard of comprehensive income

Intangible assets amortisation policy
1.3 Intangible assets

Goodwill


Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and abilities of the acquire at date of acquisition. Subsequent to the initial recognition .Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses .Goodwill is amortised on a straight line basis to the statement of comprehensive income over its useful economic life.
All intangible assets are considered to have a finite life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Other accounting policies
1.5 Debtors

Short term debtors are measured at transaction prices, less any impairment. Loans receivable are measured initially at fair value, not of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less ant impairment

1.6. Cash and cash equivalents

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.


1.7 Financial instruments

The company only enters into basic financial instruments transaction that result in the recognition of financial assets and liabilities like trade and other debtors and creditors ,loan from bank and other third parties ,loans to related parties and investments in non -putt able ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statements of comprehensive income.

For financial assets measured at cost less impairment, loss is measured as the difference between an asset’s carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were sold at the balance sheet date
1.8 Creditors

Short term creditors are measured at the transaction price .Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction cost, and are measured subsequently at amortised cost using the effective interest method.

1.9 Dividends

Equity dividends are recognised when they become legally payable, interim equity dividends are recognised when paid .Final equity dividends are recognised when approved by the shareholders at the annual general meeting .Dividends on shares recognised as liabilities are recognised as expense and classified within interest payable.


1.10 Interest income

Interest income is recognised in the statement of comprehensive income using the effective interest method.

1.11 Provision for liabilities

Provisions are made where an event has taken place and give the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the statement of comprehensive income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.1.
1.12 Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive income, except that a charge attributable to the item of income and expense recognised as other income or an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.


The current income charge is calculated on the basis of tax rate and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that

:The recognition of deferred tax asset is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits, and

: Any deferred tax balance are reversed if and when all conditions for retaining associated tax allowances have been met .

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair value of asset acquired and the future tax deduction available for them and the differences between the fair values of liabilities acquired and the amounts that will be assessed for tax .Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2. Statutory information

Synergy Power LTD is a private company, limited by shares, domiciled in England and Wales,
Registration number 08129914. The register office is the techno centre, Coventry university technical park, puma way, Coventry CV1 2TT