Abbreviated Company Accounts - BUDE HOLIDAY RESORT 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.
The accounts have been prepared on a going concern basis as the principal shareholder of the parent company has indicated that he will continue to support the company for the next 12 months.

Turnover policy
Turnover represents the value, net of value added tax and discounts, of services provided to customers

Tangible assets depreciation policy
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.
Plant and machinery -10% reducing balance
Motor vehicles- 10% reducing balance

Intangible assets amortisation policy
Purchased goodwill is amortized over a useful life of 5 years.

Other accounting policies
Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability.
The interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.
Rentals paid under operating leases are charged to income on a straight line basis over the lease term.

Intangible assets represent the purchased goodwill on the acquisition of the business and assets of Bude Holiday Park.

Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.
Plant and machinery -10% reducing balance
Motor vehicles- 10% reducing balance