Abbreviated Company Accounts - WOOD GREEN INVESTMENTS LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
Accounting convention
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008)

Turnover policy
Turnover represents the total invoice value of rent receivable during the year, excluding VAT where it is charged.

Tangible assets depreciation policy
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Fixtures and fittings - 25% on reducing balance

Investment property
In accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008) investment properties are revalued annually and the aggregate surplus or deficit is transferred to the revaluation reserve. Any surplus of deficit not expected to be temporary is written off in the Profit and Loss Account. No depreciation is provided in respect of freehold properties held as investments. This is a departure from the requirements of the Companies Act 2006 which requires all properties to be depreciated. Such properties are held for investment and not for consumption and the director considers that to depreciate them would not give a true and fair view. Depreciation is only one of the many elements reflected in the annual valuation of properties and accordingly the amount of depreciation which might otherwise have been charged cannot be separately identified or quantified. The director considers that this policy results in the accounts giving a true and fair view.

Other accounting policies
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Going concern
The balance sheet shows net current liabilities however after the year end the company has arranged a new finance facility. Therefore the directors believe it is appropriate to prepare the financial statements on a going concern basis which assumes the company will continue in existence for the foreseeable future.