Abbreviated Company Accounts - MORTONBENTLEY PROPERTIES LTD

1Accounting Policies

Basis of measurement and preparation of accounts
The accounts have been prepared under the historical cost convention modified to include the valuation of certain fixed assets and in accordance with the Financial Reporting Standard for Smaller Entities effective April 2008.

Turnover policy
Turnover represents the total value of rental income receivable during the year.

Tangible assets depreciation policy
Depreciation is provided at rates calculated to write off the cost or valuation less residual value of each asset over its expected useful life, as follows:
Land and buildings - In accordance with the FRSSE the investment properties are not depreciated.
Fixtures, fittings and equipment - 25% straight line

Other accounting policies
Investment properties:
The investment properties are valued at their open market existing use value at the balance sheet date. Any surplus on revaluation is transferred to an investment property revaluation reserve. Any deficit is deducted from the investment property revaluation reserve, except for permanent diminutions in value, which are charged to the profit and loss account.

Leasing:
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Deferred taxation:
Provision is made for deferred tax at the expected rate of corporation tax in respect of timing differences between profits as computed for taxation purposes and profits as stated in the financial statements where material. Provision is not made in respect of unrealised capital gains on revaluation of the freehold properties where the properties will not be disposed of in the forseeable future.