Abbreviated Company Accounts - MACAS LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Tangible assets depreciation policy
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold investment property - not provided

Valuation information and policy
Investment Property
Investment property is held for long-term investment and is accounted for in accordance with SSAP 19 as follows:
Investment property is valued annually. The surplus or deficit on revaluation is transferred to the revaluation reserve unless a deficit below original cost, or its reversal, on the investment property is expected to be permanent, in which case it is recognised in the profit and loss account for the year.
Although the Companies Act would normally require the systematic annual depreciation of fixed assets, the directors believe that the policy of not providing depreciation is necessary in order for the financial statements to give a true and fair view, since the current value of the investment property, and changes to the current value, are of prime importance rather than a calculation of systematic annual depreciation. Depreciation is only one of many factors reflected in the annual valuation, and the amount which might otherwise have been included cannot be separately identified or quantified.

Other accounting policies
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Going Concern
The Directors are confident that the company will be able to deliver positive cash-flows and that the company will be able to service it's liabilities as and when they fall due. Accordingly the Directors consider the company will manage it's business risks successfully and therefore continue to adopt the going concern basis in preparing the financial statements.