Summary of significant accounting policies and key accounting estimatesThe principal accounting policies applied in the preparation of these financial statements are set out below.These policies have been consistently applied to all the years presented, unless otherwise stated.Statement of complianceThese abridged financial statements were prepared in accordance with Financial Reporting Standard 102 'TheFinancial Reporting Standard applicable in the UK and Republic of Ireland'.Basis of preparationThese abridged financial statements have been prepared using the historical cost convention except that asdisclosed in the accounting policies certain items are shown at fair value.Investment propertyInvestment property is carried at fair value, derived from the current market prices for comparable real estatedetermined annually by external valuers. The valuers use observable market prices, adjusted if necessary for anydifference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profitor loss.Cash and cash equivalentsCash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquidinvestments that are readily convertible to a known amount of cash and are subject to an insignificant risk ofchange in value.Trade debtorsTrade debtors are amounts due from customers for merchandise sold or services performed in the ordinarycourse of business.Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised costusing the effective interest method, less provision for impairment. A provision for the impairment of tradedebtors is established when there is objective evidence that the company will not be able to collect all amountsdue according to the original terms of the receivables.StocksStocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost isdetermined using the first-in, first-out (FIFO) method.The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labourcosts and those overheads that have been incurred in bringing the inventories to their present location andcondition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carryingamount is reduced to its selling price less costs to complete and sell; the impairment loss is recognisedimmediately in profit or loss.Trade creditorsTrade creditors are obligations to pay for goods or services that have been acquired in the ordinary course ofbusiness from suppliers. Accounts payable are classified as current liabilities if the company does not have anunconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelvemonths after the reporting date. If there is an unconditional right to defer settlement for at least twelve monthsafter the reporting date, they are presented as non-current liabilities.Trade creditors are recognised initially at the transaction price and subsequently measured at amortised costusing the effective interest method.BorrowingsInterest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearingborrowings are subsequently carried at amortised cost, with the difference between the proceeds, net oftransaction costs, and the amount due on redemption being recognised as a charge to the Profit and LossAccount over the period of the relevant borrowing.Interest expense is recognised on the basis of the effective interest method and is included in interest payableand similar charges.Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlementof the liability for at least twelve months after the reporting date.Share capitalOrdinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or otherresources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferredand the time value of money is material, the initial measurement is on a present value basis.