The accounts have been prepared under the historical cost convention and in accordance with FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by Section 1A of the standard)

The directors have the opinion that the company is in a strong financial position to manage its business risks for the foreseeable future and therefore, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is made up of the invoiced value of services provided by the company, net of Value Added Tax and trade discounts. Invoices are issued at regular intervals during the year and turnover is recognised in the financial statements following the issue of a sales invoice. Sales invoices are issued in advance of the service being provided and therefore a provision is made for turnover that is attributable to a future financial period. The turnover attributable to future financial periods are calculated on a time basis. 

The tax payable for the period is based on the taxable profit or loss. The taxable profit or loss may differ from the profit or loss reported in the financial statements because adjustments are made for items that are treated differently for tax purposes compared to their treatment for accounting purposes. The tax liability is based on current tax laws and rates.

Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation compared to their treatment for accounting purposes. Deferred tax also includes the impact of any tax implications from the movements in fair value changes of investments. The deferred tax balance has not been discounted.

Dividends that are deemed to have been voted and paid during the financial period are included in these financial statements. Proposed dividends are only included as liabilities in the financial statements when their payment has been approved by the shareholders prior to the balance sheet date.

Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives. All present tangible fixed assets are fully depreciated.

Investment properties are valued in the financial statements at their fair market value only if that can be reliably measured without undue cost or effort and any changes in those values are recognised in the the profit or loss account. The accumulated fair value gain or loss is taken to the fair value reserve together with any associated deferred tax implications and is only transferred to retained distributable earnings on the sale of an investment property. The methods and assumptions used to ascertain the fair market value and subsequent gain or loss are shown below:

• Properties are valued using open market valuations on a freehold basis, conducted annually by the directors with assistance from property agents.

Fixed asset investments are valued in the financial statements at their fair market value and any changes in those values are recognised in the profit and loss account. The accumulated fair value gain or loss together with any associated deferred tax implications are taken to the fair value reserve and is only transferred to retained earnings on the disposal of the fixed asset investment. The methods and assumptions used to ascertain their fair market value and subsequent gain, or loss are shown below:

• Listed investments are valued at the market price ruling at the reporting date.
• Other investments are valued at current expected value at the reporting date.

Market values are provided by the company's current financial advisor who is qualified for these purposes. 

Provisions are recognised when the company has a present obligation as a result of a past event which it is more probable than not will result in an outflow of economic benefits that can be reasonably estimated.

The company has elected to apply the provisions of Section 11 Basic Financial Instruments and Section 12 Other Financial Instruments Issues of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial instruments included within these financial statements are valued at the transaction price ruling at the time of the transaction.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.