3 Accounting policies
Basis of preparation
The financial statements
have been prepared on the historical cost basis.
The financial statements
are prepared in sterling, which is the functional currency of the company. Turnover
Turnover is measured at the fair value of the consideration received or receivable for services rendered, net of discounts and Value Added Tax.Revenue from the sale of services is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on departure of travel; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Tangible assets
Tangible assets are initially measured at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
| Fixtures and fittings | 33% reducing balance |
Financial instruments
The company has an arrangement with ABTA to provide a non interest bearing bonding arrangement. The arrangement of cash entrusted annually for ABTA is confirmed by a designated third party.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.