Interest incomeInterest income is recognised in the Statement of Comprehensive Income using the effective interestmethod.Finance costsFinance costs are charged to the Statement of Comprehensive Income over the term of the debtusing the effective interest method so that the amount charged is at a constant rate on the carryingamount. Issue costs are initially recognised as a reduction in the proceeds of the associated capitalinstrument.PensionsThe company operates a defined contribution pension scheme for one of its directors. The assets ofthe scheme are held separately from those of the company. The annual contributions payable arecharged to the Statement of Comprehensive Income.TaxationTax is recognised in the Statement of Comprehensive Income, except that a charge attributable to anitem of income and expense recognised as other comprehensive income or to an item recogniseddirectly in equity is also recognised in other comprehensive income or directly in equity respectively.The current income tax charge is calculated on the basis of tax rates and laws that have beenenacted or substantively enacted by the balance sheet date in the countries where the companyoperates and generates income.DebtorsShort term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.Cash and cash equivalentsCash is represented by cash in hand and deposits with financial institutions repayable without penaltyon notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to knownamounts of cash with insignificant risk of change in value.CreditorsShort term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.Financial instrumentsThe company only enters into basic financial instrument transactions that result in the recognition offinancial assets and liabilities like trade and other debtors and creditors, loans from banks and otherthird parties, loans to related parties and investments in non-puttable ordinary shares.Debt instruments (other than those wholly repayable or receivable within one year), including loansand other accounts receivable and payable, are initially measured at present value of the future cashflows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.Financial assets that are measured at cost and amortised cost are assessed at the end of eachreporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.Financial assets and liabilities are offset and the net amount reported in the Balance Sheet whenthere is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.DividendsEquity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders atan annual general meeting.