1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

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).

Turnover policy
Turnover represents the amounts derived from the provision of goods and services which fall within the company's ordinary activities. The principal income stream relates to the provision of residential care services for the elderly in the United Kingdom and income is recognised at fair value and is accrued on a daily basis.

Tangible assets depreciation policy
Tangible fixed assets 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:

Fixtures, fittings and equipment - 20% reducing balance

During the year the company reclassified tangible assets into a single class of fixtures, fittings and equipment. The company also implemented a change in accounting estimate thereon from varying rates on cost to 20% reducing balance. The changes are in order to present a true and fair view, however the effect of the change cannot be quantified.

Intangible assets amortisation policy
Acquired goodwill is written off at a rate of 10% per annum reducing balance.

Included within other debtors and as at 30 November 2013, the company was owed £411,258 (2012: £1,478) from Mrs E Bown on loan account. This loan is repayable on demand and interest is charged at the official rate.