Minerva Equity Limited - 31 March 2019 Final 19.08.2019 - Flipbook - Page 31
Minerva Equity Limited (formerly DMWSL 881 Limited)
Notes to the financial statements
for the period ended 31 March 2019 (continued)
3 Summary of significant accounting policies (continued)
Exemptions for qualifying entities under FRS 102 (continued)
The Company has taken exemption from disclosing share-based payment arrangements, required
under FRS102 paragraphs 26.18(c), 26.19 to 26.21 and 26.23, concerning its own equity
instruments.
Consolidated financial statements
The Group financial statements comprise a consolidation of the financial statements of the Company
and all its subsidiary undertakings as at 31 March 2019. The accounting policies are uniformly
applied across the Group. The results of companies acquired or disposed of are consolidated from
the effective date of acquisition or to the effective date of disposal. Intra-group sales and profit are
eliminated on consolidation.
The result of the Company for the financial period was a £1.2 million loss.
Foreign currencies
Monetary assets and liabilities denoted in foreign currencies are translated into sterling at the rates
of exchange ruling at the balance sheet date. Transactions denominated in foreign currencies during
the year are translated into local currency at the rate of exchange ruling on the dates on which the
transactions occurred. All differences are taken to the profit and loss account.
The company’s functional and presentation currency is the pound sterling.
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Company and that these benefits can be measured reliably.
Revenue is measured at the fair value of the consideration received or receivable for goods and
services provided and net of discounts and value added taxes.
The Group has identified four operating segments, being utilities, telecoms, data and transport.
These are consistent with the way the Group reports financial information internally.
Contract income
The activities of the Group are largely undertaken through long-term framework contracts. Under
these contracts’ revenue is recognised in line with each separate supply of goods and services
completed. Where losses are foreseeable in respect of future supplies committed under these
framework contracts, appropriate provisions are made. In addition, an accrual is maintained for
future remedial works that may be required in respect of supplies already made.
For long-term project contracts where the outcome of the contract can be measured reliably, revenue
is recognised by reference to the stage of completion of the contract activity at the balance sheet
date (e.g. on a costs incurred or milestone reached basis). Where it is probable that total contract
costs will exceed total contract revenue, the expected loss is recognised as an expense immediately
in the profit and loss account.
Where the outcome of a contract cannot be measured reliably, contract revenue is recognised to the
extent of contract costs incurred where it is probable that these costs will be recovered.
Where contracts exhibit characteristics of both framework and long-term project contracts, the
company applies the appropriate recognition criteria to the separate components of the contract.
Amounts recoverable on contracts are stated at cost plus attributable profits less provision for losses
and payments on account. Payments on account in excess of amounts recoverable on contracts are
included in creditors.
On target cost contracts with a pain/gain mechanism the gain is recognised when there is a higher
degree of confidence it will be received, and the pain is recognised to the extent incurred on activities
to date and as soon as that pain is foreseeable.
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