Abbreviated Company Accounts - B & H SOUND SERVICES LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
Accounting Convention
The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standards for Small Entities (effective April 2008).

The company has taken advantage of the exemption in Financial Reporting Standard No 1 from the requirement to produce a cash flow statement on the grounds that it is a small company.

Compliance with Accounting Standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (excepted as otherwise stated).

Turnover policy
Turnover represents amounts receivable for goods and services net of value added taxation.

Tangible assets depreciation policy
Tangible fixed assets 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 leasehold - 7 years straight line
Technical equipment - 15% p.a. reducing balance
Office equipment and fittings - 15% p.a. reducing balance
motor vehicles - 25% p.a. reducing balance

Other accounting policies
Goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of 15 years.

Leasing and Hire Purchase Commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

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

Stock
Stock is valued at the lower of cost and net realisable value.

Deferred Taxation
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

Group Accounts
The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertaking comprise a small-sized group. The company has therefore taken advantage of the exemptions provided by section 399 of the Companies Act 2006 not to prepare group accounts.

Related Party Relationships and Transactions
The following directors have interests in the 10% debenture totalling £70,000 (2013 £70,000):
B A Hillson - £60,000 (2013 £60,000)
P F Charlton - £10,000 (2013 £10,000)

The debentures are secured by a fixed and floating charge over the assets of the company and have no fixed repayment date. The interest charge for the year was waived.

Included within other debtors is £16,773 (2013 £18,804 creditor) due from B A Hillson. Included within other creditors is £8,896 (2013 £8,896) due to P F Charlton and £10,204 (2013 £10,204) due to J A Stanford.

Mr B A Hillson has provided a guarantee to £55,000 in respect of B & H Sound Services Limited bank borrowing.

Other Transactions
During the year the company traded with B & H Syscom Limited, a company controlled by Mr B A Hillson, for which the transactions are as follows:-
Purchase of goods and services £20,000 (2013 £20,000)
These are all at normal commercial rates.
At the balance sheet date £221,549 (2013 £230,686) was owed by B & H Syscom Limited and is included in debtors.

Debtors include a amount of £221,549 (2013 £230,686) which is due after more than one year