Abbreviated Company Accounts - THINSPACE TECHNOLOGY LTD

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities effective April 2008.

Turnover policy
The Company markets and licences its product primarily through indirect channels such as value-added resellers and channel distributors.
The Company product licence is perpetual and includes either one or two years of maintenance.
Maintenance includes enhancements and unspecified software upgrades.
The Company also separately sells support and maintenance renewal contracts.
All of the Company’s revenues, which occur from the sale of licences, support contracts and maintenance renewal contracts are recognised on a pro rata basis over the term of the arrangement, which is either 12 or 24 months in most cases and assuming all other criteria have been met.
The Company does not recognise any revenue upon receipt of an order from a customer.
Software licence revenues are recognised when a non-cancellable licence agreement has been signed and the customer acknowledges an unconditional obligation to pay, the software product has been delivered, there are no uncertainties surrounding product acceptance, the fees are fixed or determinable and collection is considered probable

Tangible assets depreciation policy
Fixtures and fittings - 25% straight line

Intangible assets amortisation policy
10% per annum - see more detailed information under note 2 below.

Valuation information and policy
see detailed information relating to the revaluation of Developed Technology in 2013 at note 2 below.

Other accounting policies
DEFERRED REVENUE - calculated in accordance with the note on turnover policy amounted to £217,431 (2013 - £411,160). This is included in creditors.
GOING CONCERN - The Company is a wholly owned subsidiary of USA company Thinspace Technology, Inc. Included in Creditors are liabilities amounting £421,355 which are owing to the holding company for which immediate payment is not being sought. In addition deferred revenue is a liability for future services and not a payment obligation.

Intangible assets are Developed Technology which was valued by the Directors at 31st December 2013 and is being written off over it's expected useful life of 10 years from January 2006.