Abbreviated Company Accounts - TEAM REDLINE RACING LIMITED

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 future operation of the business is dependant upon the continued support of the directors, shareholders, overdraft facility provided by HSBC plc, hire purchase financiers and other creditors. They have indicated their willingness to do so and in addition during the year the directors and shareholders have demonstrated their commitment by the introduction of long term funds to provide working capital. For this reason, the financial statements are prepared on the going concern basis.

Turnover policy
Turnover represents amounts receivable for goods and services net of VAT.

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:

Land and buildings - Leasehold
Plant and machinery - 10% reducing balance
Fixtures, fittings & equipment - 25% reducing balance
Motor vehicles / racing cars - 20% reducing balance / 5% straight line

Intangible assets amortisation policy
Acquired goodwill is written off in equal annual installments over its estimated useful economic life.