Abbreviated Company Accounts - BRENNAN ATKINSON INTERNATIONAL 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.

Despite the fact that the company has negative distributable reserves as at 31 December 2014, the directors are of the opinion that sufficient funding is available to the company to enable it to meet its own liabilities as and when they fall due due to the support from Benjamin David Holdings Limited, a company controlled by Mr M Abramson, the company's ultimate controlling party. The company meets its day to day finance requirements through a combination of cash reserves, bank overdraft facilities and invoice discount facilities. The current facilities expire on 5 May 2016. The directors will enter into renewal negotiations with the respective lenders at a future date closer to the renewal deadline, it is expected that the facilities will be renewed in full.

The financial statements have therefore been prepared on a going concern basis.

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

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 - 20% straight line
Computer equipment - 20% straight line
Fixtures, fittings and equipment - 20% straight line
Motor vehicles - 25% straight line

Intangible assets amortisation policy
Goodwill comprises the amounts arising on acquisition of trading activities calculated as the difference between the consideration paid and the fair value of the assets or trade acquired.

Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of 20 years.

Other accounting policies
Stock
Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving stock. Cost is calculated as the cost of materials. Net realisable value is based on estimated selling price less additional costs to completion and disposal. Stock represents finished goods for resale.

Revenue recognition
Revenue represents the amounts derived from the provision of goods and services, stated net of VAT. It also includes discounts received.

Revenue from the sale of products and services is recognised at the point of despatch. Where revenue relates to a direct delivery this is recognised as the estimated date of delivery to the customer.

Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

Voting rights attached to Ordinary A and Ordinary B shares are calculated at 75% of the members holding of A and B Ordinary shares as proportion of the total A and B shares in issue at the date of resolution.

Voting rights attached to Ordinary C, Ordinary D and Ordinary E shares are calculated at 15% of the members holding of C,D and E Ordinary shares as proportion of the total C,D and E shares in issue at the date of resolution.

Voting rights attached to the preference shares are calculated at 10% of the members holding of preference shares as proportion of the total preference shares in issue at the date of resolution.

The preference shares are redeemable at any point in time at the original subscription price.

6Transactions with directors