1Accounting Policies

Basis of measurement and preparation of accounts
Accounting convention
The financial statements are prepared under the historical cost convention and in accordance with the
Financial Reporting Standard for Smaller Entities (effective January 2015).
1.2 Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting
Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied
consistently (except as otherwise stated).
1.3 Turnover
Turnover represents amounts receivable in respect of the provision of hotel accommodation, conference
facilities and meals during the year, excluding value added tax. Income for accommodation is recognised
on a daily basis of the customers use of the hotel. Income relating to conference facilities is recognised on
an invoice basis issued after the end of the use of the facility. Food and beverage income is recognised at
the point of sale to the customer.
1.4 Tangible fixed assets and depreciation
Tangible fixed assets other than freehold land are stated at cost less depreciation. Depreciation is
provided at rates calculated to write off the cost less estimated residual value of each asset over its
expected useful life, as follows:
Leasehold Property Improvements 10% straight line
Plant & machinery 20% straight line
Equipment 20% straight line
Fixtures & fittings 20% straight line
1.5 Financial Instruments
Financial instruments are classified and accounted for, according to the substance of the contractual
arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any
contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
1.6 Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete
and slow moving items.