Abbreviated Company Accounts - MARY REID INTERNATIONAL SPA ACADEMY LTD.

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements are prepared under the historical cost convention, and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).
The company is dependent on the financial support of its directors to remain in business.

Turnover policy
Turnover comprises the invoice value of goods and services supplied by the company, net of Value Added Tax and trade discounts.
The whole of the turnover and profit or (loss) before taxation is attributable to education and related activities to the spa industry.

Tangible assets depreciation policy
Tangible fixed assets are stated at cost less depreciation. The cost of tangible fixed assets, less any residual value, is written off over their expected useful lives as follows:
Plant & machinery 20% per annum reducing balance basis

Intangible assets amortisation policy
Goodwill is the difference between amounts paid on the acquisition of a business and the fair view of the separable net assets. It is amortised to profit and loss account over its estimated economic life of eight years.

Valuation information and policy
Stocks and work in progress
Stocks and work in progress are valued at the lower of cost and estimated net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

Other accounting policies
Revenue recognition
The company recognises revenue to the extent that it has fulfilled its contractual obligations to its customers through the supply of goods and services.