Abbreviated Company Accounts - LMH RETAIL 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 April 2008.

Turnover policy
Turnover represents the total invoice value, 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:
Land and properties - Straight line over the life of lease
Plant and machinery - 10% reducing balance
Fixtures, fittings and equipment - 15% reducing balance
Property improvements - 2% reducing balance

Other accounting policies
Deferred taxation:
The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have been originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that directors consider that it is more likely than not that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred taxation is measured on a non-discounted basis at the average tax that would apply when the differences are expected to reverse, based on the tax rates and laws that have been enacted by the balance sheet date.