Abbreviated Company Accounts - JOHN EDWARDS FUNERAL DIRECTORS 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 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:

Fixtures, fittings and equipment - 25% straight line
Motor vehicles - 25% straight line

Intangible assets amortisation policy
Amortisation is calculated on a straight line basis to write off the valuation of Goodwill over its expected useful life:

Goodwill - 3 years straight line

Other accounting policies
Stock and work in progress
Stock and work in progress are valued at the lower of cost and net realisable value.

Hire purchase and leasing
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.