1Accounting Policies

Turnover policy
Turnover represents the amounts (excluding Value Added Tax) derived from the provision of goods to third party customers.

Tangible assets depreciation policy
Fixed assets are present at historical cost. Depreciation is provided to write off the cost of fixed assets over their estimated useful economic life at the following rates:
Fixtures and equipment 25%
Leasehold improvements 10%

Intangible assets amortisation policy
Intangibles assets are carried at cost less amortisation and any provisions for impairment. They are amortised over their useful economic life, not exceeding 20 years.

Other accounting policies
Leases
Assets acquired under finance leases are capitalised and the outstanding future lease obligations are shown in creditors. Operating lease rentals are charged to the profit and loss account on a straight line basis over the period of the lease.


Stocks
Stocks are stated at the lower of cost and net realisable value.

Taxation
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 otherwise required by FRS 19.

The goodwill arose on the acquisition by the company of the trade and assets of a restaurant business in May 2008 and is being amortised over 10 years, which the directors consider to be its useful economic life.