1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements are prepared under the historical cost convention and include the results of the Company's operations which are described in the Directors' Report and all of which are continuing. All applicable accounting policies have been complied with or departures disclosed.
The Company has taken advantage of the exemption in Financial Reporting Standard No. 1 from the requirement to produce a cash flow on the grounds that it is a small Company.

Turnover policy
Turnover represents the value of sales invoiced during the year net of Value Added Tax and all discounts allowed.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation.
Depreciation is provided to write off the cost of fixed assets, less their estimated residual values, over the estimated life of the assets at the following annual rates:-
Plant & equipment ..............…15% on net book value
Motor vehicles ............…........25% on net book value
Freehold buildings..….…........5% on cost
Freehold land is not depreciated.

Intangible assets amortisation policy
The policy is to write down goodwill to their residual value over a 20 year period.

Valuation information and policy
Valuation of investments
Investment properties are shown in the Balance Sheet at their open market value. The properties are professionally valued every five years and in the intermediate years by the Directors unless they have reason to believe their estimate to be unreliable.

Other accounting policies
Stocks
Stocks are stated at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stocks.

Deferred taxation
The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, however, deferred tax assets are recognised only to the extent that the director considers in more likely than not that there will be suitable taxable profits from which future reversal of the underlying timing differences can be deducted.
In accordance with FRS 19, deferred tax is recognised on revaluation gains. Deferred tax is measured on a non-discounted 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.
No provision for deferred taxation is made on the revaluation of investment properties unless there is a binding contract for sale.

Pensions
The company contributes to a Money Purchase scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year. At the year end there were no unpaid or prepaid premiums.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the Balance Sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

Operating leases
Rentals applicable to operating leases where substantially all of the benefits of ownership remain with the lessor are charged to the profit and loss account as incurred.

Disclosure of creditors
Creditors are shown on the balance sheet as negatives, (i.e. therefore debtors), this is due to the non-professional disclosures required by the Registrar of Companies. Please ignore the brackets around these figures.

4Fixed assets Investments
The investment properties were valued at the year end by the directors. They were valued at open market value.

Class A shares have full voting rights, full rights on a winding up and full rights to dividends. Class B, C & D shares do not carry any voting rights, any automatic rights to dividends and no rights on the winding up of the company.