FLYING_COLOURS_ADVICE_LIM - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Flying Colours Advice Limited (Formerly known as Flying Colours Finance Limited) is a private company limited by shares incorporated in England and Wales. The registered office is 1301 Ocean House The Ring, Bracknell, Berkshire, England, RG12 1AX.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The directors are satisfied that the company will have adequate resources to trade for a period of 12 months from the date the accounts were signed.true The company is reliant on support from the parent company Flying Colours Holdings Limited. The parent company has confirmed that it will provide financial support if this is required for at least the following 12 months, and the majority shareholder of the parent company has provided a guarantee to this effect.

Initial advisor income is recognised when instructions are sent to providers, following conclusion of contractual terms with the client. Ongoing wealth management services are chargeable to clients in accordance with the period over which those services are supplied and fees are recognised on an accruals basis in accordance with contracted rates.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Intangible fixed assets represents capitalised costs relating to the company's online financial advisory platform. After initial recognition, intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses.

The platform has been in use for more than 2 years and amortisation has been charged over that time. Development work has continued to be capitalised and amortised as additional features have been added and made available for use. Development costs are being amortised evenly over their estimated useful life of 5 years.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

All staff employed within the group are employed by Flying Colours Services Limited (a fellow subsidiary of Flying Colours Holdings Limited). Staff costs are recharged to companies in the group.

The average monthly number of persons (including directors) employed by the company during the year was:

Development costs comprise the cost, principally dedicated staff and contractors, of developing the company's bespoke online portal. The portal has been in use for four years. Additions comprises enhancements and additional features which are quickly brought into use.

The directors have carried out a review for impairment of the development costs and consider that no impairment is necessary. The tools developed are directly linked to the company generating its income and are expected to continue to be used in the foreseeable future. These are still under regular development and being adapted to the ongoing needs of the business as it grows and develops and the directors will continue to develop these to underpin the growth of the business and add additional functionality.

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

The retained earnings reserve records retained earnings and accumulated losses.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

The parent company of Flying Colours Advice Limited is Flying Colours Holdings Limited, whose registered address is 1301 Ocean House The Ring, Bracknell, Berkshire, England, RG12 1AX.