Abbreviated Company Accounts - DESIGN LIFE 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.

Tangible assets depreciation policy
Tangible fixed assets other than freehold land are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as follows;

Land and buildings Freehold

Freehold land and buildings are held for the purpose of the property rental trade and not for investment purposes.

No charge for depreciation has been made to freehold land and buildings, as in the opinion of the directors, the depreciation charge and the accumulated depreciation would be immaterial due to the estimated residual values of the assets being not materially different to the carrying amount.

The company has a policy and practice of regular maintenance and repair (with charges being reflected in the profit and loss account) in order that the assets maintain their previously assessed standard of performance.

Freehold land and bulidngs are reviewed for impairment at the end of each financial year.

Other accounting policies
Capitalisation of interest
Interest paid on bank loans used to finance the construction of new buildings is capitalised in the year as part of the cost of development.