Abbreviated Company Accounts - SALTLEY LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements 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 net sales of goods and services, excluding value added tax.

Tangible assets depreciation policy
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance

Intangible assets amortisation policy
Goodwill is being amortised evenly overs its estimated useful life of twenty five years.

Other accounting policies
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet and are depreciated over their estimated useful lives. The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. Rentals paid under operating leases are charged to the profit and loss account as incurred.

4Fixed assets Investments
The company's investments at the balance sheet date in the share capital of companies include the following:
Associated company
Lyric Limited
Nature of business: Pharmacy
Class of shares: Ordinary
Holding: 25%
Aggregate capital and reserves as at 30 September 2013: £119,524 (2012: £119,093)
Profit for the year ended 30 September 2013: £431 (2012: £1,180)
Lyric Limited is controlled by Gama Limited, the company's immediate and ultimate parent company.