Abbreviated Company Accounts - NNZ LTD

1Accounting Policies

Basis of measurement and preparation of accounts
These abbreviated financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Turnover policy
The turnover shown in the profit and loss account represents amounts receivable during the year, net of rebates payable exclusive of value added tax. Turnover is recognised on despatch of goods.

Tangible assets depreciation policy
Depreciation is calculated so as to write off the cost of an asset, net of anticipated disposal proceeds, over the useful economic life of that asset as follows:
Freehold buildings - 4% straight line
Plant & machinery - 10%-25% straight line
Office equipment - 15% straight line
Motor vehicles - 20% straight line
The cost of the tangible fixed assets is their purchase price plus any incidental costs of acquisition.

Other accounting policies
Accounting convention
The financial statements have been prepared on a going concern basis in accordance with applicable accounting standards in the United Kingdom, under the historical cost convention as modified by the revaluation of investment properties and in accordance with the Companies Act 2006.
The principal accounting policies, which have been applied consistently throughout the year, are set out below. Where a choice of treatment is available the directors apply the most appropriate accounting policy and estimation techniques in accordance with Financial Reporting Standard 18.

Stocks
Stocks are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. Net realisable value is based on estimated selling price less additional costs to completion and disposal.

Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Pension costs
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more or a right to pay less tax in the future have occurred by the balance sheet date with certain limited exceptions.
Deferred tax is calculated on an undiscounted basis at the tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Foreign currencies
Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of transaction.
Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate at the balance sheet date except where they are covered by forward contracts when the forward rate is used.
Any gains or losses on translation are included 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.

Related party transactions
The company has taken advantage of the available exemption in FRS 8 not to disclose transactions with entities that are part of NNZ Group, on the grounds that it is a wholly owned subsidiary undertaking of NNZ Beheer BV.

Ultimate parent company and controlling party
At the 31 December 2014 the company's ultimate parent company was NNZ Beheer BV, a company incorporated in the Netherlands.
Consolidated financial statements are available from NNZ Beheer BV Postbus 104, 9700 AC Groningen, Netherlands.