Abbreviated Company Accounts - FLETCHER'S BISTRO LTD

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements are prepared under the historical cost convention.

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

Tangible assets depreciation policy
Tangible fixed assets other than freehold land are stated at cost less depreciation. Depreciation is provided at rates to calculated to write off the cots less estimated residual value of each asset over its expected useful life, as follows:
Land & buildings freehold 2% straight line
Plant & Machinery 20% straight line
Fixtures, fittings & equipment 20% straight line
Motor vehicles 20% straight line

Other accounting policies
Leasing & hire purchase commitments
Assets obtained under hire purcahse 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 a constant periodic rate of charge on the net obligation outstanding in each period.
rentals payable under operating leases are charged against income on a straight line basis over the lease term.
Stock
Stock is valued at the lower of cost and net realisable value.

Pensions
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
Government grants
Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to te profit and loss account as the related expenditure is incurred.