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 amounts chargeable, net of value added tax, in respect of the sale of goods and services to
customers.

Tangible assets depreciation policy
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated
residual value, over their expected useful economic life as follows:
Asset class Depreciation method and rate
Office equipment 25% reducing balance

Other accounting policies
Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of
certain items for taxation and accounting purposes, which have arisen but not reversed by the balance sheet date,
except as required by the FRSSE.
Deferred tax is measured at the rates that are expected to apply in the periods when the timing differences are
expected to reverse, based on the tax rates and law enacted at the balance sheet date.

3Transactions with directors

The company owes the director, A Hunter, £6,000 in unpaid wages. The director has decided not to take the
wages and instead to leave them in the company for the short term. He is not charging any interest to the
company and there are no terms of repayment.