Abbreviated Company Accounts - ARTANCIENT LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
Basis of Preparation of Financial Statements
The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

Tangible Fixed Assets and Depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following basis;
Leasehold improvements - over the term of the lease
Fixtures & Fittings - 20% reducing balance
Office Equipment – 20% reducing balance
Website - 20% straight line

Operating leases
Rentals under operating leases are charged to the Profit and loss account on a straight line basis over the lease term.

Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Deferred taxation
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.
A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.
Deferred tax assets and liabilities are not discounted.

Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.
Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.
Exchange gains and losses are recognised in the Profit and loss account.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

DIRECTOR'S BENEFITS: ADVANCES, CREDIT AND GUARANTEES
During the year advances of £64,534 (2013: £65,022) were made to the director, of which £66,770 (2013: £64,376) was repaid. At the balance sheet date the company was owed £51,001 (2013: £51,071). This balance is included within other debtors. Interest totalling £2,166 (2013: £2,764) was charged on this loan, at a commercial rate.

ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY
The company's ultimate parent undertaking at the year end was Artancient Holdings Limited, a company registered in England and Wales.
The company remained under the ultimate control of the director, Mr C Paraskevaides, throughout the current and prior year.