Abbreviated Company Accounts - FLYPAY 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 April 2008.

Turnover policy
Turnover comprises revenue recognised by the company based on contractual arrangements for development, operating and transactional revenue, exclusive of Value Added Tax. Invoices are raised in accordance with the terms of these contractual arrangements.

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 basis:

Leasehold improvement - 2 years straight line
Office equipment - 3 years straight line
Computer equipment - 3 years straight line

Intangible assets amortisation policy
Intangible fixed assets represent intellectual property which is held at cost less provision for impairment.

Other accounting policies
Operating leases:
Rentals under operating leases are charged to the Profit and Loss account on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate.

Foreign Currencies:
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Profit and loss account.

On incorporation, the company issued 100 Ordinary shares of £1 each at par. On 11 June 2013, a further 900 Ordinary shares of £1 each were issued at par. These 1,000 Ordinary shares were then converted into 10,000 Ordinary shares of 10p each by subdivision. On 12 June 2013, a further 48,336 Ordinary shares of 10p each were issued at par and an additional 15,000 Ordinary shares of 10p each were issued at a premium of £9.90 per share. On 7 February 2014, 24,717 Preferred seed shares of 10p each were issued at a premium of £40.36 per share.

Both Ordinary shares and Preferred seed shares are entitled to attend and vote at general meetings of the company with equal voting rights.

The Preferred seed shares and the Ordinary shares rank equally for dividends declared by the company. However, holders of Ordinary shares shares receive a return of capital after the holders of Preferred seed shares in accordance with the conditions attached to the shares which are detailed in the company's Articles of Association. The holders of Preferred seed shares have the right to convert the shares into Ordinary shares in accordance with the conditions attached to them as per the Articles.

5Transactions with directors

Interest free advance.