Abbreviated Company Accounts - CHICKEN RUN 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 amounts invoiced during the year in respect of goods and services provided.

Tangible assets depreciation policy
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant & Machinery etc - 20% on cost, 15% on cost and 15% on reducing balance.
The freehold property is maintained in a good state of repair and it is considered the residual value is such that any depreciation is not significant.

Other accounting policies
Deferred Tax:
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, with the exception of deferred tax on gains arising from the revaluation of fixed assets. The deferred tax on gains arising from the revaluation of fixed assets are recognised only if there is a binding agreement to sell the re-valued asset by the balance sheet date. However, no provision is made where it is more likely than not the gain will be rolled over into replacement assets and charged to tax only when the replacement assets are sold.

Hire purchase and leasing commitments:
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Grants received;
Grants received in respect of revenue expenditure are credited to the profit and loss account when the revenue expenditure is incurred. Grants received in respect of capital expenditure are treated as deferred income and credited to the profit and loss account over the life of the asset.

3Fixed assets Investments
On 30th June 2005, the company subscribed for 90 Ordinary Shares of £1 each in The Big Picture Childcare Ltd, being 90% of the share capital of the company.