2Accounting Policies

Basis of measurement and preparation of accounts
The accounts use the micro-entities regime and FRS 105, on a basis other than going concern. Accommodation operations ended and keys were returned 12 March 2026. The director intents to close the company after outstanding matters are dealt with. The company has not been assumed to be in a formal liquidation.

For orderly wind-down, cash and receivables are carried at expected recovery, the prepayments at cost to the extent recoverable or representing services consumed during the remaining accommodation activity or subsequent administration. Equipment with no expected disposal or recovery is reduced to nil. Liabilities are recognised for existing obligations; future operating losses are not provided for. This basis changes asset values without treating March disposals as February transactions

Turnover policy
Turnover represents accommodation and related guest charges, less guest refunds. The manager is treated as agent; management, cleaning, software and platform charges are recorded separately from turnover. The company was not VAT registered and no input VAT is reclaimed.

Tangible assets depreciation policy
Equipment cost £2,596, including £2,500 furnishings purchase. The director confirms that items were disposed of or left at the apartment, with none retained, no items sold and no proceeds, compensation or recovery expected. Its carrying amount is reduced to nil on the closure basis.

Valuation information and policy
The £1,500 deposit is disputed. The agent's written 22 July 2026 calculation identifies £120 to return. This is used as the best available recovery estimate, giving a £1,380 reduction, while the director continues to pursue a higher recovery. The estimate does not accept or settle the landlord's deductions. No additional recovery is recognised.

Other accounting policies
Statements survive for combined March and April, May, June, July, October and November 2025. August, September and December 2025 and January and February 2026 have been reconstructed. Repeated attempts to obtain missing reports, booking data and cleaning invoices were unsuccessful; the manager confirmed that these were unavailable.

The reconstruction uses actual net settlements, £51 monthly software and 10% management charges on income after platform deductions. Cleaning is estimated at 20.7723% of that income using June, July, October and November. This comparison excludes the launch period and an atypical month - long May stay, reflecting the director's confirmation that short stays generally predominated. Platform charges use observed April channel rates and surviving channel mix; missing month charges include an estimated platform add-on of 15.7337% of income after those charges.

The figures are best available estimates, with material uncertainty about booking counts, channel mix, rates and carryovers.