Abbreviated Company Accounts - TOTTERIDGE 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). At the balance sheet date liabilities exceeded assets by £24,725. The accounts have been prepared on a going concern basis as the director has provided assurances that sufficient alternative finance will be available should the company require to maintain it's trading.

Turnover policy
Turnover represents the value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers.

Tangible assets depreciation policy
Depreciation
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.

Land and buildings Not depreciated
Fixtures, fitting and equipment 20% straight line

Valuation information and policy
Stocks
Stock is valued at the lower of cost and net realisable value.

Other accounting policies
Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account.

Investment properties
"In accordance with SSAP 19 "" Accounting for Investment Properties"" properties held for long term investment are revalued annually and are included in the balance sheet at their open market values. The aggregate surplus or deficit is transferred to the revaluation reserve. Depreciation is not provided in respect of freehold investment properties.

The application of this standard represents a departure from the Companies Act 2006 , which requires depreciation to be provided on all fixed assets. Whilst the statutory requirement conflicts with the generally accepted accounting basis set out in SSAP 19, the directors consider that as these properties are not held for consumption but for their investment potential,to depreciate them would not give a true and fair view. If this departure from the Companies Act had not been made,the profit in the financial period would have been reduced by the depreciation charge. Depreciation is one of a number of factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be separately identified nor quantified."