Abbreviated Company Accounts - RAY HARRIS DESIGN 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 comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases;

S/Term Leasehold Property - over the life of the lease
Motor Vehicles - 25% reducing balance
Fixtures & fittings - 10% straight line
Computer equipment - 25% straight line

Other accounting policies
Operating Leases

Rentals under operating leases are changed to the profit and loss accounts on a straight line basis over the lease term.

Stocks

Stocks are valued at the lower of cost and net realisable value.

Deferred Taxation

Full provision is made for deferred tax assets and liabilities arising from all timing difference between the recognition of gains and losses in the financial statements and recognition in the tax computation.

A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing difference can be deducted.

Deferred tax assets and liabilities are calculated at the tax rate expected to be effective at the time the timing differences are expected to reverse.

Deferred tax assets and liabilities are not discounted.