Abbreviated Company Accounts - GROVE INFORMATION SYSTEMS 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.

The company has cash resources and has no requirement for external funding. The director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The director continues to believe the going concern basis of accounting appropriate in preparing the annual financial statements.

Turnover policy
Turnover represents the amounts (excluding value added tax) derived from the provision of services to third party customers. Revenue is recognised on a straight line basis over the length of the contract. Amounts not recognised as income in the year are carried forward and included in creditors, as deferred income. Purchase costs in respect of the above contracts are similarly charged over the length of the contract. Amounts not recognised as expenses in the year are carried forward and included in debtors, as prepayments.

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:
- Fixtures and fittings - 20% straight line
- Computer equipment - 20% straight line

Intangible assets amortisation policy
Licences are valued at cost less accumulated amortisation. Amortisation is calculated to write off the cost in equal annual installments over their estimated useful life of five years.

5Transactions with directors