Abbreviated Company Accounts - LUPONDE TEA 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.
The company currently shows an excess of current liabilities over current assets in the balance sheet. Due to the ongoing support of the company's principal shareholders, the directors believe that it is appropriate to prepare accounts on a going concern basis which assumes that the company will continue in existence for the foreseeable future. If the company were unable to continue in existence for the foreseeable future, adjustments would have to be made to reduce the balance sheet value of assets to their recoverable amounts, to provide for further liabilities that might arise and to reclassify fixed assets as current assets.

Turnover policy
Turnover represents sales to outside customers at invoiced amounts excluding value added tax.

Tangible assets depreciation policy
Depreciation is provided at rates calculated to write off the cost , less estimated residual value, of each asset over its expected useful life as follows:
Fixtures and fittings 20% per annum
Office equipment 25% per annum

Valuation information and policy
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items. Net realisable value is based upon estimated selling price.

Other accounting policies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rate ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating result.

3Fixed assets Investments
Investments are stated at cost.