Abbreviated Company Accounts - LIBRA INSURANCE SERVICES LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities effective April 2008.

Turnover policy
Turnover represents brokerage earned and commission receivable. Profit commission is credited to the profit and loss account on a receivable basis when the amount due to the company can be reasonably ascertained.

Tangible assets depreciation policy
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on cost

Intangible assets amortisation policy
In accordance with the FCA requirements all purchased goodwill is written off in the year of acquisition.

Other accounting policies
Recognition of income and expenditure
Brokerage income is recognised at inception or later on the issuance of debit notes where the contractual obligations had not been completed at the earlier date.
It is not practical to devise accounting policies which consistently match revenue from brokerage with the related expenses. Accordingly, expenses are recognised as they occur.

Insurance broking assets and liabilities
The Company acted as an agent in broking the insurable risks of its clients and, generally, is not liable as a principle for premiums due to underwriters or for claims payable to clients. Notwithstanding the Company’s legal relationship with clients and underwriters and since in practice premium and claim monies are usually accounted for by insurance intermediaries, it has followed generally accepted accounting practice by showing cash, debtors and creditors relating to insurance business as assets and liabilities of the Company itself.
In accordance with Financial Reporting Standard for Smaller Entities (effective April 2008) and Financial Reporting Standard 5, assets and liabilities are shown gross within these financial statements.

Client monies held within statutory or non-statutory trust client bank accounts
As required by the Financial Conduct Authority (FCA), the Company holds funds on behalf of its clients within statutory or non-statutory trust client bank accounts and the latter are subject to trust deeds. These monies do not belong to the Company. However, as the client and underwriter debtor and creditor balances are shown in the books, the Company considers it necessary to include on its balance sheet cash balances held within statutory or non-statutory trust client bank accounts.

Hire purchase and leasing commitments
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profit on a straight line basis over the lease term.

Pension costs and other post-retirement benefits
Contributions in respect of the company's defined contribution pension scheme are charged to the profit and loss account for the year in which they are payable to the scheme. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments at the year end.

3Fixed assets Investments
Fixed asset investments are stated at cost less permanent diminution in value.