Urenco Annual Report 2022

1. Significant accounting policies General information Urenco Limited (“the Company”) is a company domiciled and incorporated in the United Kingdom under the Companies Act 2006. Urenco Limited is the ultimate parent company and controlling party of the Group. The principal place of business of the Company is the same as the address of its registered office which is given on page 86. Its main activity is that of a holding company for the Group’s operations. Basis of preparation and presentation The separate financial statements of the Parent Company are presented as required by the Companies Act 2006. As permitted by that Act, the separate financial statements have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard (FRS) 101 “Reduced Disclosure Framework”. The accounts are prepared under the historical cost basis, except for those financial instruments which have been measured at fair value. The Company’s financial statements are presented in euros. This is consistent with the presentation of the Group consolidated financial statements. The functional currency is sterling as that is the primary economic environment in which the company operates. No Company income statement or statement of comprehensive income is presented for Urenco Limited, as permitted under section 408 of the Companies Act 2006. The Company has applied FRS 101 “Reduced Disclosure Framework” incorporating the Amendments to FRS 101 issued by the FRC in July 2015 and the amendments to Company law made by The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015. As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that standard in relation to the presentation of a cash flow statement, standards not yet effective, presentation of financial statements, fair value measurement, revenue recognition, leases, financial instruments and related party transactions. Where required, equivalent disclosures are given in the Group accounts of Urenco Limited. The auditor’s remuneration for audit and other services is disclosed in note 5 to the Group’s consolidated financial statements. Going concern The Directors have assessed the latest forecast future cash flows, including appropriate sensitivities, which indicate that available cash and committed financing facilities in place are sufficient to cover the Company’s cash needs for at least twelve months after the date of approval of these financial statements. They are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future, and thus they continue to adopt the going concern basis of accounting in preparing these financial statements. The Directors have considered the situation in Ukraine and have concluded that there is no substantial adverse impact on the going concern assumption. For further details please see page 49. Adoption of new and revised accounting standards Amendments to accounting standards that are mandatorily effective for the current year The accounting policies adopted in the preparation of the Company's annual financial statements for the year ended 31 December 2022 are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended 31 December 2021, except as follows: In the current year, the Company has applied a number of amendments to IFRSs issued by the International Accounting Standards Board (IASB) that are mandatorily effective for an accounting period that begins on or after 1 January 2022. International Accounting Standards (IFRS/IAS) IASB Effective Date – periods commencing on or after UK endorsed Effective Date – periods commencing on or after Reference to the Conceptual Framework (Amendments to IFRS 3) 1 January 2022 1 January 2022 Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) 1 January 2022 1 January 2022 Onerous Contracts—Cost of Fulfilling a Contract (Amendments to IAS 37) 1 January 2022 1 January 2022 Annual Improvements to IFRS 2018– 2020: • Amendment to IFRS 1 First-time Adoption of International Financial Reporting Standards - Subsidiary as a First-time Adopter. • Amendment to IFRS 9 Financial Instruments - Fees in the ‘10 per cent’ Test for Derecognition of Financial Liabilities. • Amendment to IFRS 16 Leases – Removal of the illustration of the reimbursement of leasehold improvements. • Amendment to IAS 41 Agriculture - Taxation in Fair Value Measurements. 1 January 2022 1 January 2022 The Directors have reviewed the changes to accounting standards as listed in the table above and have assessed that these changes have not had any material impact on the financial statements of the Company. Financial statements Notes to the Company Financial Statements For the year ended 31 December 2022 167 Urenco Annual report and accounts 2022 Financial statements 03