Abbreviated Company Accounts - FLEX-ABLE TRAVEL LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

Turnover policy
Turnover comprises revenue recognised by the company in respect of goods and services supplied
during the year, exclusive of Value Added Tax 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 of fixed assets, less their estimated residual value, over their
expected useful lives on the following bases:

L/term leasehold property - 15% on written down value
Plant and machinery - 20% on written down value
Motor vehicles - 25% on written down value
Fixtures and fittings - 15% on written down value
Office equipment - 20% on written down value

Other accounting policies
Going concern
The financial statements have been prepared on a going concern basis which assumes that the
company will continue in operational existence for the foreseeable future. The validity of this
assumption depends upon the success of the Creditors Voluntary Arrangement entered into on 8 July 2015.

Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for
obsolete and slow-moving stocks.

Leasing and hire purchase
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed
assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their
useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases
are those where substantially all of the benefits and risks of ownership are assumed by the
company. Obligations under such agreements are included in creditors net of the finance charge
allocated to future periods. The finance element of the rental payment is charged to the Profit and
loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in
each period.

Operating leases
Rentals under operating leases are charged to the Profit and loss account on a straight line basis
over the lease term.

Pensions
The company operates a defined contribution pension scheme and the pension charge represents
the amounts payable by the company to the fund in respect of the year.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual
arrangement, as either financial assets, financial liabilities or equity instruments. An equity
instrument is any contract that evidences a residual interest in the assets of the company after
deducting all of its liabilities.

Factoring
The company factors the majority of its sales under an invoice discounting scheme. The company
deals with the collection of these debts, and retains the benefits and risks. Accordingly, trade debtors
are shown in full, and advances from the factoring company appear in creditors.

During the year, advances of £1,829 were made to the director. The balance outstanding at the year end totalled £1,829, and the balance is included within other debtors. No interest has been charged on this loan.