Abbreviated Company Accounts - RADIUS DEVELOPMENTS LTD

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 represents the total invoice value, excluding value added tax, of sales made during the year

Tangible assets depreciation policy
Tangible fixed assets are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of tangible fixed assets, less their estimated residual value, over their expected useful lives as follows:
Land and buildings freehold - 0%
Plant and machinery - 25% reducing balance
Fixtures, fittings and equipment - 25% reducing balance
The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Intangible assets amortisation policy
Purchased goodwill arising on the acquisition of a business represents the excess of the acquisition cost over the fair
value of the identifiable net assets when they were acquired. Purchased goodwill is capitalised in the balance sheet
and amortised on a straight line basis over its economic useful life of 0 years, which is estimated to be the period
during which benefits are expected to arise. On disposal of a business any goodwill not yet amortised is included in
determining the profit or loss on sale of the business.

Other accounting policies
Leasing and Hire Purchases
Tangible fixed assets held under Leasing and Hire Purchases arrangements which transfer substantially all the risks and rewards of ownership to the company are capitalised and included in the balance sheet at their cost or valuation,
less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the profit and loss account.

Taxation
Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the balance sheet date.

The company's roofing division ceased to trade on 30th April 2013. As a result the director reviewed the useful economic life of the Goodwill and reduced it down to 19 months in the prior year. The opening Net Book Value at the start of the financial year for Goodwill was £0. This now means that goodwill has been fully written off.