Abbreviated Company Accounts - INNOVATE (COWDENBEATH) LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The full financial statements from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover policy
Turnover comprises sales to external customers at invoiced amounts less value added tax. Income is recognised in the period in which services are supplied.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold property - Not depreciated
Motor vehicles - 25% reducing balance
Equipment and fittings - 20% reducing balance
Ground improvements - 20% reducing balance

Intangible assets amortisation policy
A trademark application has been made during the period and is included as an intangible asset at the balance sheet date. It has not been depreciated for the period under review.

Valuation information and policy
Investments held as fixed assets are shown at cost less provision for impairment.

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Other accounting policies
Deferred Taxation
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.

A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.

Deferred tax assets and liabilities are not discounted.

4Fixed assets Investments
Impaired by £24,227 from £32,302 at 1/4/2014 to £8,075 at 30/11/2014.

5Transactions with directors