Abbreviated Company Accounts - LAWNSTILL 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 rents receivable and sales of properties held as stock, excluding value added tax, of sales made during the year.

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

Fixtures, fittings and equipment – 20% straight line

Other accounting policies
Investment properties:

Investment properties are valued periodically at open market value and the aggregate surplus or deficit is transferred to a revaluation reserve. No depreciation is provided on investment properties. The Companies Act 2006 requires that these properties be depreciated. However, the director considers that these properties should be included in the financial statements at their open market values in order to give a true and fair view. It would neither be practicable nor of real value to determine the depreciation taken into account in arriving at open market values.


Deferred taxation:

Provision is made for deferred taxation using the liability method to take account of timing differences between the incidence of income and expenditure of taxation and accounting purposes except to the extent that the directors consider that a liability to taxation is unlikely to materialise. The directors do no intend the company to realise the investment property and as such believe there to be a nil full potential liability to deferred taxation in the company.