REGISTERED NUMBER:
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THE INSULATION ASSURANCE AUTHORITY |
LIMITED |
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FINANCIAL STATEMENTS |
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FOR THE PERIOD |
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26 FEBRUARY 2020 TO 30 APRIL 2021 |
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REGISTERED NUMBER:
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THE INSULATION ASSURANCE AUTHORITY |
LIMITED |
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FINANCIAL STATEMENTS |
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FOR THE PERIOD |
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26 FEBRUARY 2020 TO 30 APRIL 2021 |
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THE INSULATION ASSURANCE AUTHORITY |
LIMITED (REGISTERED NUMBER: 12483858) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE PERIOD 26 FEBRUARY 2020 TO 30 APRIL 2021 |
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Page |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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THE INSULATION ASSURANCE AUTHORITY |
LIMITED |
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COMPANY INFORMATION |
FOR THE PERIOD 26 FEBRUARY 2020 TO 30 APRIL 2021 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants & |
Statutory Auditors |
2nd Floor Exchange Building |
16 St Cuthberts Street |
Bedford |
Bedfordshire |
MK40 3JG |
THE INSULATION ASSURANCE AUTHORITY |
LIMITED (REGISTERED NUMBER: 12483858) |
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BALANCE SHEET |
30 APRIL 2021 |
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Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 5 |
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CURRENT ASSETS |
Debtors | 6 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES | 8 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 9 |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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THE INSULATION ASSURANCE AUTHORITY |
LIMITED (REGISTERED NUMBER: 12483858) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE PERIOD 26 FEBRUARY 2020 TO 30 APRIL 2021 |
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1. | STATUTORY INFORMATION |
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The Insulation Assurance Authority Limited is a
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2. | STATEMENT OF COMPLIANCE |
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3. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
The financial statements have been prepared on the historical cost basis. |
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The financial statements are prepared in sterling, which is the functional currency of the entity. |
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During the year, the global health crisis caused by Coronavirus (COVID-19) has had a significant impact on all businesses. The directors have assessed the potential impact of this uncertain situation on the Company and have put in contingency plans in order to mitigate the negative effects of any period of interrupted trading, which will enable the Company to continue as a going concern. |
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Adequacy of guarantee funds |
The principal activity of the company is to provide a uniform and dependable independent guarantee for the insulation industry. The Council of Management's primary objective is to review on an annual basis that the company will have sufficient resources to ensure that guarantee claims, both notified to it at the year end and those that may arise in the future, can be met as they fall due. |
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In doing so the Council considers the sum of the deferred income reserve, the provision for notified claims and the provision for unexpired risk to assess whether this overall 'guarantee reserve' is sufficient to meet the claims that are likely to arise based on current projections of claim rates over the unexpired guarantee period and the anticipated expenditure on settling claims as adjusted for anticipated inflation. |
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Turnover |
Turnover is stated after allocating part of the guarantee fee received from the installer on the completion of each insulation to deferred income. This deferred income is allocated to turnover in equal annual instalments over the lifetime of the IAA guarantee. |
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Tangible fixed assets |
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Fixtures and fittings | - |
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Computer equipment | - |
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Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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THE INSULATION ASSURANCE AUTHORITY |
LIMITED (REGISTERED NUMBER: 12483858) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 26 FEBRUARY 2020 TO 30 APRIL 2021 |
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3. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Deferred income |
In order to accumulate guarantee funds the company allocates part of the guarantee fee received from the installer on the completion of each insulation to deferred income. An annual judgement is made as to what percentage of the guarantee fee is allocated straight to turnover and the balance to deferred income, based on market conditions and claims history. |
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This deferred income is allocated to the profit and loss account in equal annual instalments over the lifetime of the IAA guarantee commensurate with the expected incidence of claims. In reaching its assessment of the pattern of claims the company makes reference to past experience. The deferred income represents the proportion of the guarantee fee issued in the year and in previous years that relate to the unexpired risk period of the guarantees in issue. |
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Guarantee claims paid |
Guarantee claims incurred comprise claims and related expenses paid in the year, together with the movement on the provision for outstanding claims notified but not settled at the year end date and the provision for unexpired risk on guarantee claims in issue. |
THE INSULATION ASSURANCE AUTHORITY |
LIMITED (REGISTERED NUMBER: 12483858) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 26 FEBRUARY 2020 TO 30 APRIL 2021 |
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3. | ACCOUNTING POLICIES - continued |
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General provisions |
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. |
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and are subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are disclosed in the profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises. |
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Provision for notified claims |
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A provision is made in respect of all claims notified to the company by guarantee holders as at the year end date. In estimating the cost of notified but not settled claims, the Council of Management has regard to the claim circumstances as reported and the cost of settling claims with similar characteristics in previous periods. |
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Provision for unexpired risk |
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An unexpired risk provision is made where the estimated cost of claims and related expenses exceed the unearned fee, after taking account of future investment income and cost inflation. An assessment is made at the year-end for the estimated cost of claims which may arise during the unexpired period of each guarantee in force at the balance sheet date. |
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The provisions are inevitably subject to inherent uncertainties because of the range of factors which could give rise to potential claims over the 25 year guarantee period. The time expected to elapse between the inception of the guarantee, the manifestation of events giving rise to claims and the notification to and settlement by the company of such claims accentuate these uncertainties. |
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4. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the period was
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5. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
Additions |
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At 30 April 2021 |
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DEPRECIATION |
Charge for period |
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At 30 April 2021 |
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NET BOOK VALUE |
At 30 April 2021 |
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THE INSULATION ASSURANCE AUTHORITY |
LIMITED (REGISTERED NUMBER: 12483858) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 26 FEBRUARY 2020 TO 30 APRIL 2021 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
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Trade debtors |
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Prepayments and accrued income |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
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Trade creditors |
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VAT | 20,402 |
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8. | PROVISIONS FOR LIABILITIES |
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2021 |
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Other provisions |
Deferred guarantee income | 20,456 |
20,456 |
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9. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal |
value: | £ |
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Ordinary | £1 | 1,000 |
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Upon incorporation the company issued 1,000 Ordinary shares of £1 each at par. |
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10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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11. | RELATED PARTY DISCLOSURES |
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At 30th April 2021
The Cavity Insulation Guarantee Agency
, its ultimate parent company, was owed an amount
of £ 229,696 by The Insulation Assurance Authority Limited. No interest was charged in the period and there are no set repa yment terms in place. |
THE INSULATION ASSURANCE AUTHORITY |
LIMITED (REGISTERED NUMBER: 12483858) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 26 FEBRUARY 2020 TO 30 APRIL 2021 |
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12. | DEFERRED TAXATION |
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Deferred tax |
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Accelerated capital allowances | 6,505 |
Balance at 30 April 2021 | 6,505 |