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 turnover shown in the profit and loss account represents commissions and fees.
Rental income has been accounted for on a receivable basis.

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Planning and operating costs for the company's website are charged to the income statement as incurred.

Taxation represents the sum of tax currently payable and deferred tax. Tax is recognised in the statement of income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves.
The company’s liability for current tax is calculated using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Current and deferred tax assets and liabilities are not discounted

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting date.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Current and deferred tax assets and liabilities are not discounted.

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 on the following basis:

Turnover represents commission income receivable for arranging GAP insurance policies as an intermediary and is recognised over the period of cover to which the policy relates.

Where policies give rise to a contractual obligation to provide refunds to customers in the event of early cancellation, revenue is recognised over the period of cover.

Income received but not yet earned at the balance sheet date is deferred and included within creditors as deferred income. The deferred income balance represents the proportion of commission income relating to unexpired periods of cover, calculated on a time-apportioned basis and, where appropriate, adjusted for expected cancellations based on historical experience.

Deferred income is released to the profit and loss account over the period in which the services are provided.

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.
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.