Abbreviated Company Accounts - SMILEYDAZE LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (Effective April 2008).

Turnover policy
Turnover is inclusive of value added tax and is in respect of the sale of goods and services to customers.

Tangible assets depreciation policy
Depreciation is provided so as to write off the cost during the expected useful life of the asset.
Fixtures and fittings - 20% of written down value

Intangible assets amortisation policy
Goodwill
Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Amortisation
Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:
Goodwill - Over 7 year lease

Other accounting policies
Stock
Stocks are stated at the lower of cost or net realisable value.

Deferred tax
Deferred tax is recognised, without discounting, in repsect of all timing differences between the treatment of certain items for taxation and accounting purposes, which have arisen but not reversed by the balance sheet date, except as required by the FRSSE.
Deferred tax is measured at the rates that are expected to apply in the periods when the timing differences are expected to reverse, based on the tax rates and law enacted at the balance sheet date.

Hire purchase and leasing
Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the lease term.