1Accounting Policies

Basis of measurement and preparation of accounts
1.1 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
1.2 Turnover represents the total invoice value, excluding value added tax, of sales made during the year and derives from the provision of goods falling within the company’s ordinary activities.

Tangible assets depreciation policy
1.4 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 & equipment - 25% straight line

Other accounting policies
1.3 Goodwill - Acquired goodwill is written off in equal instalments over it's estimated useful economic life of 5 years.
1.5 Stock - Stock is valued at the lower of cost and net realisable value.
1.6 Pensions - The pension costs charged in the financial statements represent the contribution payable by the company during the year. The regular cost of providing retirement pensions and related benefits is charged to the profit and loss account over the employees’ service lives on the basis of a constant percentage of earnings.
1.7 Going Concern - The company purchased the goodwill in June 2013 and has capitalised it and will amortise it equally over a five year period.