Abbreviated Company Accounts - ST PAUL'S GARAGE 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 January 2015.

Turnover policy
Turnover represents the total invoice value, excluding value added tax, of sales made during the year.

Tangible assets depreciation policy
All fixed assets are initially recorded at cost. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Plant and machinery - 15% Reducing Balance and 5 Years Straight Line
Fixtures, fittings and equipment - 15% Reducing Balance
Motor vehicles - 25% Reducing Balance
Computer equipment - 33.33.% Straight Line

Other accounting policies
Leasing and hire purchase commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period.

Rentals payable under operating leases are charged against income on a straight line basis over the lease terms.

Stock
Stock is valued at the lower of cost and net realisable value, after making due allowance of obsolete and slow moving items.

Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more, tax.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

5Transactions with directors

The company provided the director, C Dowling with a current account on which cash advances and private expenses of £16,226 (2014 - £7,676) paid by the company were charged.

These amounts were repaid by the director or by the award of dividends to the director. The total repaid during the year was £14,763 (2014 - £7,676), leaving £1,463 (2014 - £0) outstanding at 31 December 2015.

The company provided the director, P Dowling with a current account on which cash advances and private expenses of £0 (2014 - £4,172) paid by the company were charged.

These amounts were repaid by the director or by the award of dividends to the director. The total repaid during the year was £0 (2014 - £4,172), leaving £0 (2014 - £0) outstanding at 31 December 2015.

All the above advances are unsecured and have no fixed repayment terms. Interest was charged at the official rate of interest.