Abbreviated Company Accounts - HOTHOUSE FICTION LTD

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 financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).

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

Revenue is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for its performance under contracts. For incomplete contracts, an assessment is made to the extent to which revenue has been earned. The assessment takes into account the nature of the assignment, its stage of completion and relevent contract terms. Unbilled revenue is included in debtors and revenue billed in advance is included in creditors.

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:

Fixtures, fittings & equipment - 33% on cost

Other accounting policies
Going concern

The Directors have reasonable expectations that the company has adequate resources to continue in operational existence for the foreseeable future by reason of the loans made to the company by the two executive Directors. For this reason, the Directors continue to adopt the going concern basis.