Abbreviated Company Accounts - I D HOUSTON FARMING COMPANY LIMITED

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.

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 the expected useful economic life as follows:
Asset class Depreciation method and rate
Plant and machinery 15% reducing balance basis
Office equipment 3 year straight line basis

Intangible assets amortisation policy
The amount paid in connection with the purchase of the single farm payment entitlement was
amortised over the useful economic life of that entitlement, and has now been fully amortised.

Other accounting policies
Government grants
Government grants such as the single farm payment are included in the profit and loss account when all the necessary conditions for receipt have been met.

Deferred tax
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.

4Transactions with directors

Directors' advances are repayable on demand.

Interest has been charged at a rate of 4% on advances to directors.

The maximum amount owed by I Houston during the year was £91,118.