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
Turnover represents the total invoice value, excluding value added tax, of sales made during the year.

Tangible assets depreciation policy
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:
Leasehold properties - 20 years straight line
Plant and machinery - 15% reducing balance
Fixtures, fittings and equipment - 15% reducing balance
Motor vehicles - 25% reducing balance

Intangible assets amortisation policy
Milk Quota is valued at cost. No depreciation is provided on Milk Quota.

Valuation information and policy
Stock is valued at the lower of cost and net realisable value. Cost is computed on a first in first out basis.
Net realisable value is based on estimated selling price less the estimated cost of disposal.
In respect of livestock cost is arrived at on the following rates as a percentage of the market value of home bred stock or the purchase of immature stock.
Cattle 60%
Sheep 75%

Other accounting policies
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 have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more, tax.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

4Fixed assets Investments
Breeding Assets
Breeding assets are dealt with on the herd basis of valuation. Transfers in to the herd are calculated at cost or a percentage of market value whichever is applicable.Transfers out of the herd are dealt with on a first in first out basis. Replacement of temporary reductions in the herd are calculated at the value of original cost replaced.