Abbreviated Company Accounts - OCEANAIR TRAVEL (UK) LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements are prepared under the historical cost convention and on the going concern basis.

Turnover policy
Revenue and costs from the sale of air-tickets are recognised when orders are confirmed by the customers. Turnover is disclosed gross as opposed to on a commission only basis as the company acts as a Principal. If these sales are not invoiced at the end of the year the income is accrued and included within debtors.

Tangible assets depreciation policy
Tangible fixed assets are recorded as cost. Depreciation is calculated on a straight line basis to write off the cost, less estimated residual value, of tangible fixed assets over their anticipated useful lives as follows:

Furniture and equipment - over 5 years

Other accounting policies
Foreign currencies
Monetary assets and liabilities expressed in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date or at the agreed contractual rate. Transactions in foreign currency are translated at the rate ruling at the date of the transaction. All differences on exchange are taken to the profit and loss account.

Pensions
The company operates a defined contribution pension scheme, the assets of which are held in a separate trust fund. Contributions are determined with due regard to industry norms and local practice, and are charged to the profit and loss account as incurred.

Taxation
The Company records a tax charge or credit in the profit and loss account calculated at the tax rate prevailing in the year for tax payable to HM Revenue and Customs, or for group relief to surrender to or to be received from other Group undertakings, and for which payment may be requested.
The charge for ordinary taxation is based on the profit for the year and takes into account full provision for deferred tax, using the approach set out in Financial Reporting Standard (FRS) 19 "Deferred Tax" in respect of timing differences on a non-discounted basis. Such timing differences arise primarily from the differing treatment for taxation and accounting purposes of provisions and depreciation of fixed assets.

Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date.
A net deferred tax asset is recognised as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits against which to recover carried forward tax losses and from which the future reversal of underlying timing differences can be deducted. Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.

Cash flow statement
The company is exempt from the requirements of FRS1 “Cash flow Statement” (Revised) to include a cash flow statement as it qualifies as a small company as defined by the Companies Act 2006.