Abbreviated Company Accounts - OCEANAIR EXPRESS LOGISTICS 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 January 2015).

At 31 December 2015 the company's balance sheet was in deficit by £102,485, and there were net current liabilities of £26,945. Included within the company's liabilities at that date were a bank loan of £184,040, and £15,414 owed to its parent company. The company is therefore reliant upon the continuing support of its directors and bank loan guarantor as well as Jersey companies under common control of the directors, to ensure the company continues to meet its debts, including bank loan repayments, as they fall due for at least the next twelve months from the date of the approval of these accounts. The directors have confirmed this will be the case which they believe justifies the going concern basis of preparing these accounts.

Turnover policy
Turnover represents amounts receivable for services net of VAT and trade discounts.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows, with no charge being made in the year of disposal:

Plant and machinery 20%/33% on cost

Intangible assets amortisation policy
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life. Goodwill was amortised through the profit and loss account over the directors' estimate of its useful economic life of 10 years from the date of acquisition to 31 December 2018.

Other accounting policies
Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently.

Leasing
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Deferred taxation
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

Impairment losses
An impairment review was carried out by the directors at 31 December 2014 on the goodwill comparing the carrying value to the net realisable value based on their estimate of future cash flows generated over its remaining useful economic life. As at 31 December 2015 the directors believe that the carrying value of goodwill remained below its recoverable amount.