WindarPhotonics AnnualReport 2018 All - Flipbook - Page 49
Notes to the Financial Statements
For the year ended 31 December 2018
1. General information
The Company is a public limited company domiciled in the United Kingdom and incorporated under registered
number 09024532 in England and Wales. The Company’s registered office is 3 More London Riverside, London,
SE1 2AQ.
The Group was formed when the Company acquired on 29 August 2014 the entire share capital of
Windar Photonics A/S, a company registered in Denmark though the issue of Ordinary Shares.
2. Adoption of new and revised International Financial Reporting Standards
The new standards, interpretations and amendments have not had a material effect on the financial statements:
• IFRS 9 Financial Instruments
• IFRS 15 Revenue Recognition
IFRS 9 Financial Instruments
The Group has adopted the new IFRS 9 standard on 1 January 2018. The adoption of IFRS 9 has had no impact
on the financial statements and the prior year has not been restated. The standard looks at how an entity
should classify and measure financial assets, financial liabilities, and contracts to buy or sell non-financial items.
The Group has reviewed its classification and measurement of financial assets and liabilities as from the
implementation of IFRS 9 and considered the effects of transitioning to the new standard. The classification of
financial assets and liabilities has changed however, they are still carried at amortised cost and there has been
no impact on the result for the current or prior year.
Trade and other receivables represent financial assets and are considered for impairment on an expected credit
loss model, these assets have historically had immaterial levels of bad debt and are with credit worthy customers,
and as the Group trades with a concentrated number of customers and utilises export credit facilities the Group
has reviewed trade receivables on an individual basis. Additionally, the Group continues to trade with the same
customers and therefore the future expected credit losses have been considered in line with the past performance
of the customers in the recovery of their receivables. The implementation of IFRS 9 has therefore not resulted in a
change to the impairment provision in the current or prior year.
Intercompany debtors represent financial assets and are also considered for impairment on an expected credit
loss model, the implementation of IFRS 9 on intercompany debtors has also not resulted in an impairment
provision in the current or prior year.
IFRS 15 Revenue recognition
The Group has adopted the new revenue recognition standard, IFRS 15, from 1 January 2018. The standard looks
at the timing of revenue recognition on contracts with customers. The new standard has had no impact on the
Group result in 2018 as the revenue was previously recognised when the risk and rewards of the product were
transferred to the customer. Assessing the performance obligations of customer contracts for the sale of products
and installation the Group has assessed that control passes to the customers at the same time the risk and rewards
transfer under IAS 18, and thus there is no change in the revenue recognition for the Group. The Group considered
this for all outstanding contract obligations in respect of the transition to IFRS 15 at 31 December 2018 and found
that there was no transition impact of the adoption of the standard.
The amendments and interpretations to published standards that have an effective date on or after 1 January 2019
or later periods have not been adopted early by the Group.
IFRS 16 Leases
IFRS 16 will become effective for accounting periods commencing on 1 January 2019. The Group have undertaken
an evaluation of the potential impact of IFRS 16 in respect of leases. IFRS 16 requires the Group to account for the
lease liability of the asset and the right of use asset at cost. This will mainly affect the treatment of operating
leases which were previously recorded as an annual cost to the Group. The Group has determined to use the
cumulative catch up approach for the valuation of leases, rather than the full transition method due to the current
leases held. The leases currently held by the Group all expire within nine months of the year end the Group will
apply a practical expedient that allows for them to be treated as short term leases and not valued for the
purposes of IFRS 16. There will be no effect on the 2019 financial statements in respect of the leases held.
Any new leases entered into in 2019 will be reviewed under IFRS 16 the Group will recognise the expense as
interest on its lease liabilities and amortisation on its right-of-use assets.
Windar Photonics - Annual Report and Accounts 2018
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